This farming protocol has been identified as a rug pull, users have been warned to stay away from it

Blockchain security firm CertiK has flagged Binance Smart Chain-based yield farming protocol Arbix Finance as a carpet pull.

CertiK marks Arbix Finance

According to CertiK’s incident analysis, the Arbix Finance project is showing one too many red flags. The security firm was quoted as saying:

“ARBX contract has owner only mint(), 10 million ARBX tokens minted at 8 addresses”

CertiK also confirms that 4.5 million ARBXs were minted to a single address, after which “the 4.5 million minted tokens were then offloaded.”

Another red flag identified by the firm is the $10 million in user funds. This fund was routed to unverified pools after deposit, and how convenient that a hacker eventually gained access to everything and siphoned the entire $10 million fortune out of the pool.

However, using the Skytrace tool, CertiK was able to determine that the hacker moved the funds to Ethereum via the AnySwap USDT exchange.

What exactly is a rug pull?

In general, a “rug pull” refers to what happens when the creators of a project abandon that project entirely after receiving a huge amount of investment from unsuspecting users. In fact, scams of this type are quickly becoming very rampant in the crypto industry, as recent reports have shown. So far, no less than $7.7 billion in cryptocurrency funds have been reported lost to rug pulls worldwide.

In fact, a recent report by Chainalysis confirms that rug pulls alone accounted for 37% of all crypto scam revenue in 2021. This means that rug pulls have contributed immensely to the rising cases of crypto scam money loss.

In memory of the AnubisDAO carpet move of November 2021, investors were lured by the incredibly high gains of the popular dog-themed meme coins. As a result, investors lost nearly $57 million worth of Ether (ETH) in the carpet pull.

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