Chiba Finance, a decentralized finance (DeFi) platform, has become the 12th platform on Arbitrum, a layer 2 scaling solution for Ethereum, to exit scam, according to smart contract auditor Certik. On June 27, Peckshield’s Twitter alert system notified the community that $1 million worth of cryptocurrencies had been drained from Chiba Finance. The stolen funds were swapped for 555 ETH and transferred to Tornado Cash. Shortly after the incident, all traces of Chiba Finance, including its website, social media accounts, and other online presence, were completely removed.
Chiba Finance offered a yield farming optimizer on Arbitrum, allowing users to earn auto-compounded yields by consolidating gas costs through their smart contracts. Users entrusted their assets to Chiba’s vaults to earn the project’s native token, CHIBI. Before the exit scam, CHIBI was trading at $1.35 per unit, but it has since plummeted to 0.0095. The project’s smart contract underwent an audit by Solid Proof in May 2023, but it still ended up being an exit scam.
Certik revealed that the scammer used a malicious contract to withdraw funds from Chiba Finance. The funds were then transferred, swapped for WETH, and bridged to the Ethereum network. This marks the 12th exit scam recorded on Arbitrum this year.
Continue reading on Bitcoin.com
By
By
By
By
By
By