Blockchain security firm CertiK identified yield farming protocol based on the Binance Smart Chain (BSC) Arbix Finance as a rug pull. Analysts of CertiK Security Leaderboard reported this on Twitter.
Thus, CertiK flagged the project for various reasons, according to the firm’s incident analytics. “The ARBX contract has mint() with onlyOwner function; 10 million ARBX tokens were minted to 8 addresses,” and ~4.5 million ARBX were minted to a single address. Following this, the security company then confirmed that the 4.5 million minted tokens were dumped.
Furthermore, the firm stated that users’ $10 million in funds went to unverified pools. Also, that a hacker eventually drained all of the assets from the pools. The attacker converted the tokens into Ethereum (ETH) via AnySwap. And then laundered them through the Tornado.cash mixer.
Most responsible for the surge in money lost due to crypto scams
The term “rug pull” refers to situations in which developers abandon projects totally after receiving a large sum of money for a fake crypto or decentralized finance (DeFi) project. Moreover, scams like this are common in the crypto business; with over $7.7 billion in cryptocurrency lost by victims of fraud worldwide.
In 2021, rug pulls were the most responsible for the surge in money lost to crypto scams. According to the report from Chainalysis, rug pull schemes accounted for 37% of fraudsters’ income in 2021.
In addition, the number of cybercrimes on the crypto market has increased by 81% compared to 2020. The rug pull scheme has actively spread in the DeFi ecosystem, which has brought attackers over $2.8 billion. This represents 37% of all cryptocurrency fraud revenue compared to just 1% in 2020.
Previously, the AnubisDAO (ANKH) project tokensale raised approximately 13,256.4 (~$57.42 million) ETH; using Alchemistcoin’s liquidity bootstrapping protocol (LBP) Copper after launching via Discord channel in October 28. Tokensale positioned itself as a fork of OlympusDAO. It was assumed that ANKH would be distributed after the end of the tokensale, however, a few hours before the sale closed, all liquidity was withdrawn. Since it happened, the price of the project tokens dropped to zero.