Arbix Finance, an audited and supposedly trustworthy yield farming platform, has been flagged as a ‘rugpull,’ deleting its site, Twitter, and Telegram channel and transferring $10 million worth of deposited cryptocurrency. Bleeping Computer reports: Rugpulls, otherwise known as “exist scams,” are when pseudo-anonymous platforms or cryptocurrencies are created twith the ultimate goal of collecting funds for an allegedly legitimate “service” and then disappear with deposited funds. Because decentralized networks are inherently untrustworthy, entities like CertiK attempt to evaluate them through audits that analyze a token’s smart contracts for signs of fraud, vulnerabilities, privacy problems, etc. In Arbix’s case, CertiK’s conducted an audit on November 19th, 2021, whose findings had initially been a reason for users to trust Arbix Finance.
However, today CertiK tweeted that Arbix is now classified as a rugpull after the token’s smart contract was detected minting 10 million ARBIX to addresses under the owner’s control and then dumping them for Ethereum. The operators of Arbix also moved $10 million in funds deposited by users to “unverified pools,” where they were converted to Ethereum. The scammers then transferred the Ethereum to Tornado.cash, which acts as a mixer to make it harder to trace the funds. The funds and their movements are being traced, but the chances of them being recovered are slim at this point.