The yield farming protocol based on the BSC, Arbix Finance, was identified by blockchain security company Certik as a rug pull.
According to him analysis From company incidents, there were several reasons why the project was flagged. The security firm cites that the ARBX contract has the “mint () with onlyOwner” function, 10 million ARBX tokens were minted in 8 directions, and 4.5 million ARBX were minted in one direction. Subsequently, Certik confirmed that the 4.5 million tokens minted were sold in the market.
The company also reported that the $ 10 million in funds deposited by users went to unverified funds and eventually a hacker emptied all assets in those funds.
Using the Skytrace of the platform to analyze the risk of fraud, the firm determined that the hacker switched the funds to Ethereum through the decentralized exchange AnySwapT.
The term rug pull (lit, carpet pull) is used to define the events in which developers abandon projects entirely after receiving a large amount of investment in their project, be it cryptocurrency or DeFi. Scams of this type are very prevalent in the crypto industry, accounting for more than $ 7.7 billion in crypto funds lost by victims around the world.
A report by Chainanalysis suggested that rug pulls contributed the most to the increase in money lost through cryptocurrency scams in 2021. The report noted that “37% of all crypto scam revenue in 2021 “came from rug pulls.
In November 2021, Investors lost around $ 57 million worth of Ether in a rug pull orchestrated by AnubisDAO, a fork of OlympusDAO. Investors noted that outrageous returns from popular dog-themed coins were among the reasons they invested in the project.