Altcoins

Chibi Finance team executes $1M rug pull, CHIB plummets 98%

Relay

June 27, 2023

Chibi Finance has allegedly executed a $1M rug pull on Layer 2 blockchain Arbitrum.
The team has vanished and their social media accounts are inaccessible.
Security platform Peckshield says the team channeled the funds via Torno Cash.

Arbitrum-based DeFi project Chibi Finance has disappeared into thin air with $1 million in what is reported to be a potential rug pull.

Chibi Finance, which went live only recently on Arbitrum’s Layer 2 network, is said to have drained its liquidity pool, vanishing with 555 ether (ETH). At current market prices, that’s about $1 million worth of user deposits.

Chibi Finance latest in rug pulls

According to an alert by blockchain security and data analystic firm PeckShield, the Chibi Finance team withdrew staked tokens by converting them to ETH and then funneling them to the Ethereum network via the crypto mixing service Torno Cash.

#PeckShieldAlert Seems like #Chibifinance rugged. ~$1M worth of cryptocurrencies were drained.
The stolen funds, which have been swapped for ~555 $ETH, were bridged from #Arbitrum to Ethereum.
They have alrey been transferred into Torno Cashhttps://t.co/HmVeZmWJS4 pic.twitter.com/1wM8j86fS4

— PeckShieldAlert (@PeckShieldAlert) June 27, 2023

The Chibi Finance team has allegedly also “disappeared” with the DeFi projects social media accounts on Twitter and Telegram deleted. The platform’s website is also offline.

Chibi Finance’s apparent rug pull ds to the recent spate of b actors in the Arbitrum and Ethereum ecosystems. In April, zkSync project Merlin allegedly siphoned off $2 million from its users. Meanwhile, Arbitrum-based Swaprun vanished in May, with close to $3 million of user funds in another rug pull.

CHIBI, the native Chibi Finance token, has plummeted following the news. After tring above $1.62 on Monday, CHIB price fell sharply on Tuesday morning to almost zero. Data from CoinGecko shows the crypto token has lost 98.7% of its value in the past 24 hours and currently hovers near $0.017.