Arbix Finance, a Binance Smart Chain-based yield farming protocol, has been discovered as a rug pull by blockchain security firm CertiK. The security platform warn users of their interaction with the project as it might be a crypto scam.
The project was identified for various reasons, according to the firm’s incident review. “The ARBX contract includes mint() with onlyOwner function, 10 million ARBX tokens were minted to 8 addresses,” according to the security firm, and “4.5 million ARBX tokens were minted to a single address.” CertiK then confirmed, “The 4.5 million minted tokens were then dumped.”
The firm also stated that the $10 million in funds deposited by users were diverted to unverified pools, where a hacker eventually siphoned all of the assets. The business found that the hacker shifted the cash to Ethereum via the decentralized exchange AnySwap USDT, using the platform’s Skytrace tool to assess the likelihood of fraud.
The term “rug pull” refers to situations in which developers abandon projects totally after receiving a large sum of money for fictitious crypto or decentralized finance venture. Scams like this are common in the crypto business, with over $7.7 billion in cryptocurrency cash lost by scam victims worldwide.
According to a survey by Chainalysis, rug pulls were the most responsible for the surge in money lost through crypto scams in 2021. Rug pulls accounted for “37 percent of all cryptocurrency fraud earnings in 2021,” according to the research.
AnubisDAO, a fork of OlympusDAO, pulled a rug on investors in November 2021, losing roughly $57 million in Ether (ETH). Excessive increases in the popular canine-themed meme coins were among the reasons why investors decided to invest in the rug pull.
