Chibi Finance, an Arbitrum-based DeFi project, has allegedly executed a rug pull of $1 million. The team has channeled the funds via Tornado Cash, their social media accounts are now inaccessible, and the platform’s website is offline.
PeckShield, a blockchain security and data analystic firm, released an alert informing that the Chibi Finance team withdrew staked tokens by converting them to ETH and then funneled them to the Ethereum network via the crypto mixing service Tornado Cash.
This is the latest in a series of rug pulls, joining Merlin, which allegedly siphoned off $2 million from users in April, and Swaprun, which vanished in May with close to $3 million of user funds.
The CHIBI token, Chibi Finance’s native cryptocurrency, has plummeted following the news. After trading above $1.62 on Monday, CHIB price fell sharply on Tuesday morning to almost zero. According to CoinGecko, the crypto token has lost 98.7% of its value in the past 24 hours and currently hovers near $0.017.
