Chibi Finance, a DeFi project on the Ethereum Layer 2 network, Arbitrum, has been accused of staging a “rug pull.”Stay updated on Pro Crypto Ecosystems news by locking ACS tokens with The Block.No wallet? No problem. You can set one up for free. We recommend Torus for first-time users.Chibi Finance, a recently launched DeFi project operating on Arbitrum's Layer 2 network, has been accused of staging a “rug pull,” allegedly absconding with roughly $1 million in user deposits.
The team behind Chibi Finance withdrew tokens staked by users on its platform and converted them to ether. The funds were then funneled from the Arbitrum network to Ethereum and routed through Tornado Cash, a popular Ethereum mixing service used to obfuscate transaction trails, according to PeckShield.Amid these movements, the Chibi Finance team’s digital presence vanished overnight. Its social media accounts onand Telegram, as well as the project’s website, chibi.
Meanwhile, the price of the project-issued chibi tokens, which hovered at around $1 yesterday, took a sharp nosedive,This incident is the latest in a series of apparent exit scams that have resurfaced on Arbitrum and the broader Ethereum Layer 2 ecosystem recently. Last month, the developers of an Arbitrum-based project known as Swaprum