Ghost

Arbitrum

Tornado Cash

Tornado

<p>In an unforeseen turn of events, Chibi Finance, an up-and-coming yield-optimizing service constructed on the Arbitrum platform, fell prey to a severe “<a href="https://twitter.com/Chibi_Fi">rug pull</a>” incident. Originating mere moments after its launch, the calamity resulted in a staggering loss of over $1 million worth of diverse tokens pilfered from unsuspecting users’ funds.</p> 
<h2 style="text-align: center;" id="the-devious-mechanism">The Devious Mechanism</h2> 
<p>The orchestrators of this dubious act leveraged a malicious contract, a crafty piece of code that enabled them to illicitly access and siphon away the tokens. This contract served as the covert conduit through which these malefactors funneled out the significant sum, betraying the trust of their user base in a single fell swoop.</p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en"><a href="https://twitter.com/hashtag/PeckShieldAlert?src=hash&amp;ref_src=twsrc%5Etfw">#PeckShieldAlert</a> Seems like <a href="https://twitter.com/hashtag/Chibifinance?src=hash&amp;ref_src=twsrc%5Etfw">#Chibifinance</a> rugged. ~$1M worth of cryptocurrencies were drained.<br> The stolen funds, which have been swapped for ~555 <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a>, were bridged from <a href="https://twitter.com/hashtag/Arbitrum?src=hash&amp;ref_src=twsrc%5Etfw">#Arbitrum</a> to Ethereum.<br> They have already been transferred into Tornado Cash<a href="https://t.co/HmVeZmWJS4">https://t.co/HmVeZmWJS4</a> <a href="https://t.co/1wM8j86fS4">pic.twitter.com/1wM8j86fS4</a></p> 
 <p>— PeckShieldAlert (@PeckShieldAlert) <a href="https://twitter.com/PeckShieldAlert/status/1673615238758006786?ref_src=twsrc%5Etfw">June 27, 2023</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<h2 style="text-align: center;" id="the-aftermath-a-swift-laundering">The Aftermath: A Swift Laundering</h2> 
<p>Upon successful execution of their unscrupulous plan, the stolen tokens were promptly exchanged for 555 units of <a href="https://walletinvestor.com/forecast/ethereum-prediction">Ethereum</a> (ETH), a popular cryptocurrency. To further obfuscate their tracks, the perpetrators employed the infamous mixing service Tornado Cash. Known for its capability to muddle up transaction trails, Tornado Cash offered the ideal laundering platform, making the recovery of the pilfered funds a challenging, if not impossible, task.</p> 
<h2 style="text-align: center;" id="a-market-in-freefall">A Market in Freefall</h2> 
<p>In the aftermath of the incident, the market reacted swiftly and harshly. The value of CHIBI tokens, the native token of Chibi Finance, plummeted by a colossal 98%. The drastic fall echoed the shock and disbelief reverberating through the crypto-community, leaving a once promising token in ruins.</p> 
<p><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-24217" src="https://walletinvestor.com/magazinadmin/wp-content/uploads/2023/06/Chibi.png" alt="" width="1153" height="947" srcset="https://walletinvestor.com/magazinadmin/wp-content/uploads/2023/06/Chibi.png 1153w, https://walletinvestor.com/magazinadmin/wp-content/uploads/2023/06/Chibi-300x246.png 300w, https://walletinvestor.com/magazinadmin/wp-content/uploads/2023/06/Chibi-1024x841.png 1024w, https://walletinvestor.com/magazinadmin/wp-content/uploads/2023/06/Chibi-768x631.png 768w" sizes="(max-width: 1153px) 100vw, 1153px"></p> 
<h2 style="text-align: center;" id="vanishing-act-the-ghost-protocol">Vanishing Act: The Ghost Protocol</h2> 
<p>Further fueling the controversy, the project’s official Twitter profile and website were swiftly deactivated and expunged, leaving no trace of their existence. This sudden vanishing act left users and investors in a state of confusion and panic, struggling to grapple with their unexpected losses.</p> 
<h2 style="text-align: center;" id="community-backlash-and-damage-control">Community Backlash and Damage Control</h2> 
<p>Interestingly, the fallout extended beyond the immediate circle of affected users. Several Crypto Twitter influencers, who had previously extolled the virtues of the project, found themselves facing severe community backlash. As a desperate measure to mitigate the damage, these influencers hastily deleted their promotional posts, adding to the overall climate of distrust and skepticism.</p> 
<h2 style="text-align: center;" id="conclusion">Conclusion</h2> 
<p>The Chibi Finance rug pull serves as a stark reminder of the potential pitfalls lurking in the dynamic world of cryptocurrencies. It underscores the importance of due diligence and robust security mechanisms to shield users from such unforeseen incidents. As the dust settles on this unfortunate event, it offers valuable lessons for developers, investors, and influencers alike, prompting a reassessment of strategies and an emphasis on transparency and security.</p>

Chibi Finance Rug Pulls Users for $1M, CHIBI Falls 98%

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