Breach of trust. We’d so much like to stop seeing people get pitifully robbed their money by teams of developers maliciousUnfortunately, not a month goes by without a new cryptocurrency scam case. This time, it’s the project team itself that has swindled all users by leaving with the cash register after only a few weeks of existence. Chibi Finance was a ghost project on Arbitrum who nevertheless reported 555 ethers to the gang of crooks behind it. Tale of a rug pull hopelessly banal.
Chibi Finance, an aggregator of yields but above all of thieves
« The most popular yield aggregator on Arbitrum »This is how the founders of this finance protocol decentralized defined their own projects. The operation was relatively classical, with a principle of Yield Farming Optimizer offering high-performance yields and tokens CHIBI as a reward. Launched last April, Chibi Finance boasted that it had achieved 500,000 dollars of TVL on June 21, but was hoping to surpass the million as quickly as possible. This will be done on June 26, with multiple messages on social networks to congratulate themselves on this great success.
Because often, in this kind of affair, Twitter and Instagram are used as a means of communication. sounding board to the lies of those behind the scam. In fact, with the help of bribes, gifts and profit-sharing, certain influencers crypto will relay the good results of the protocol and bring more victims into the hands of the criminals. Of course, since the discovery of the pot-au-rose, all the messages have disappeared. But, back on the evening of June 26th where the flight will reach its final phase. If we are to believe the start-up’s revelations PeckShieldspecialized in blockchain cybersecurity, the move was well prepared. Indeed, a flaw in the smart-contract was patiently waiting to be activated by the project teams.
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Rug Pull, exit scam, Ponzi, the limitless imagination of 3.0 scammers
This is also the conclusion of Certikthe project audit specialist, which confirms the modus operandi and details it in a document available to the curious. In a nutshell, the crooks used the « panic » which exists in many smart contracts and makes it possible to remove funds at any time. Except that they’re not supposed to go anywhere but into the wallet of the user who activates it! But the developers of Chibi Finance were able to hijack this function, which ultimately drained all funds to their portfolio(s).
The 555 ethers were then sent fromArbitrum circa Ethereumthen to the crypto Tornado Cash which allows you to « cryptos « disappear. Next, the protocol’s user interface displayed a 404 error and all social network accounts were disabled. Of course, the token price CHIBI also made a one-way plunge into the abyss in less than 24 hours. Certik’s teams repeat their warnings against fraudulent projects, while acknowledging that it is very complicated for an ordinary user to find this kind of flaw.
Hence the need to find out whether the protocol in question has been audited or not. In this case, it seems that SolidProof actually worked on Chibi Financebut given the company’s lack of reaction and the lack of proof of such an audit, we can say nothing more for the time being. We can only advisor to be careful in your adventures DeFi, because mischief-makers don’t lack imagination to go on vacation with your money.
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