Arbix Finance, a BSC-based yield agriculture agreement, was identified as a carpet pull by the blockchain security company Certik.
According to the company’s events analyzeThere are many reasons why items are flagged. The security company cited the mint() and onlyOwner functions of the ARBX contract. 10 million ARBX tokens were minted to 8 addresses, and 4.5 million ARBX were minted to one address. After this, Certik confirmed that 4.5 million minted tokens were subsequently discarded.
The company also reported that the $10 million in funds deposited by users was directed to an unverified pool. Eventually, the hackers removed all assets from the pool.
The company used the platform’s Skytrace to analyze fraud risks and determined that hackers exchanged funds to Ethereum through the decentralized exchange AnySwap USDT.
The term rug pull is used to define an event in which developers completely abandon the project after obtaining a large amount of investment in their fake encryption or decentralized financial project. Such scams are very common in the crypto industry, and victims of scams worldwide have lost more than $7.7 billion in cryptocurrency funds.
A report by Chainanalysis indicated that carpet pull contributed the most to the increase in losses caused by crypto fraud in 2021. Report Pointing out that “37% of all cryptocurrency scam revenues in 2021” is carpet-like.
As early as November 2021, investors lost Ether worth 57 million USD On the carpet of AnubisDAO, a branch of OlympusDAO. Investors pointed out that the huge gains from the popular canine-themed meme coin are part of the reason why they invest in the carpet pull.