BlocksInform
BSC-based yield farming protocol Arbix Finance has been identified by blockchain security firm Certik as a pull carpet.
according to the firm’s incident analysis, there were several reasons why the project was flagged. The security company mentions that the arbx a mint() contract with a single owner function, ten million arbx chips were struck at eight locations, and 4.5 million arbx were minted at a single address. Subsequently, certik confirmed that the 4.5m minted tokens were then discarded.
The company also reported that the $10 million funds deposited by users were directed to unaudited funds, and eventually, some hacker drained all the pool resources.
Using the platform's skytrace to analyze the risk of fraud, the company determined that the hacker exchanged funds for ethereum through the decentralised exchange anyswap usdt.
The term pull mat is used to define events where developers abandon projects entirely after receiving an enormous amount of investment in their fake crypto or decentralized finance project. Scams like this are widespread in the crypto industry and record over $7.7 billion in cryptocurrency funds lost by scam victims around the world.
A report by chainanalysis suggests that carpet sweaters contributed the most to the increase in money lost through crypto scams in 2021. the report noted that “37% of all cryptocurrency scam revenue in 2021” were rug pulls.
related: How to spot carpet traction in challenge - 6 tips from Cointelegraph.
back in november 2021, investors lost around $57 million worth of ether in a rug pull by anubisdao, a fork of olympusdao. Investors noted extravagant gains in popular meme canine coins were some of the reasons they invested in rug traction.
