Chibi Finance team executes $1M rug pull, CHIB plummets 98%

• Chibi Finance allegedly carried out a $1 million lag-pull on layer-2 blockchain Arbitrum.
• The team vanished and I lost access to my social media accounts.
• According to security platform Pecshield, the team drained the funds via Tornado Cash.

Arbitrum-based DeFi project Chibi Finance has vanished into thin air, leaving behind a reported $1 million in potential thresholds.

Chibi Finance, which only recently went live on Arbitrum’s Layer 2 network, is said to have exhausted its liquidity pool and disappeared with 555 Ether (ETH). When converted to current market prices, a user’s deposit is equivalent to approximately $1 million.

Chibi Finance’s latest lag pull

according to caveat With the help of blockchain security and data analytics company PeckShield, the Chibi Finance team converted staked tokens into ETH and withdrew them by pouring them into the Ethereum network via cryptocurrency mixing service Tornado Cash.

#Pec shield alert seems like #Chibi Finance solid. About $1 million worth of cryptocurrency leaked.
The stolen funds were exchanged for approximately $555 $ETHbridged from #Arbitrum to Ethereum.
They have already been transferred to Tornado Cachehttps://t.co/HmVeZmWJS4 pic.twitter.com/1wM8j86fS4

Peck Shield Alert (@PeckShieldAlert) June 27, 2023

The Chibi Finance team has also allegedly “disappeared” along with the DeFi project’s social media accounts. twitter And Telegram has been deleted. The platform’s website is also offline.

Chibi Finance’s apparent fraud has fueled the recent surge of bad actors in the Arbitrum and Ethereum ecosystems. In April, zkSync project Merlin allegedly siphoned $2 million from users. Meanwhile, Arbitrum-based Swaprun disappeared in his May, with nearly $3 million in user funds stolen again.

CHIBI, the native Chibi Finance token, plummeted following the news. After trading above $1.62 on Monday, CHIB price plummeted to near zero on Tuesday morning. According to CoinGecko data, the crypto token has lost 98.7% of its value in the last 24 hours and is currently hovering around $0.017.