Chibi Finances Shocker: $1M Rug Pull Unveiled

By Lola Coin Jun 27, 202365Views

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Chibi Finance, a yield farming optimizer on the Arbitrum network, has been involved in a major exit scam. CertiK, a blockchain security firm, confirmed that the developers behind Chibi Finance stole approximately $1 million worth of tokens. As a result, the price of the CHIBI token dropped by 98%. The scam involved the developers gaining control of the platform’s smart contracts and using a malicious contract to steal users’ funds. The stolen assets were then laundered through Tornado Cash, a privacy-focused Ethereum mixing service. Chibi Finance deactivated its Twitter account and took down its website, further confirming the fraudulent nature of the operation. This scam adds to the growing concern of scams on the Arbitrum network, with over $14 million lost to scams in 2023 alone. Investors are advised to exercise caution and conduct thorough due diligence when investing in DeFi projects, particularly on new platforms like Arbitrum.

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