Chibi Finance, a DeFi initiative on the Arbitrum network, experiences rug pull resulting in a loss exceeding $1 million.

In another instance of a rug pull, Chibi Finance, which operates on Arbitrum, allegedly drained over $1 million in various cryptocurrency assets. The protocol launched on Tuesday, but the developers quickly managed to transfer the stolen funds to other networks shortly thereafter.

• On-chain investigations carried out by the blockchain security firm CertiK indicated that the Chibi developers implemented a malicious contract that allowed them to misappropriate user funds from the protocol’s smart contracts.
• These assets were subsequently exchanged for 555 Ether and moved from Arbitrum to Ethereum on the same day, according to another security company, PeckShield, before being routed through the coin mixing service Tornado Cash to obscure transaction records.
• After the rug pull, Chibi Finance’s Twitter and Telegram accounts were deactivated, and the website was taken down.
• CertiK noted that this recent exit scam marks the 12th incident recorded on Arbitrum in 2023.
• A wave of exit scams has surfaced on Arbitrum and the broader Ethereum Layer 2 ecosystem recently, with the latest being Swaprum.
• As previously reported, the developers of the decentralized exchange siphoned off $3 million worth of Ether from the protocol.
• A recent analysis by Beosin disclosed that the total value of cryptocurrency assets lost to exit scams and rug pulls surpassed the amount stolen from decentralized finance projects through exploits and attacks last month.
• In May, over $45 million in cryptocurrency assets were taken through rug pulls across six incidents, while other exploits in DeFi totaled $19.6 million.

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