Chibi Finance Team Stole $1 Million

The team of Chibi Finance disappeared after stealing the assets of their users, which were worth one million dollars.

The team of Chibi Finance, a DeFi project operating on the Arbitrum Layer 2 network, disappeared after stealing approximately one million dollars’ worth of their users’ assets. Security analysts’ investigations revealed that a total of 555 ether was stolen from the platform’s liquidity pools. The value of these ethers is approximately one million dollars.

Tornado Cash Was Utilized

Chain analysis by PeckShield analysts confirmed that the Chibi Finance team withdrew around 555 ether, equivalent to approximately one million dollars, from their own liquidity pools. The team converted the tokens staked by users into Ether and used the popular Ethereum mixing service called Tornado Cash to obfuscate the transaction trails.

Chibi Finance Team Goes Missing

Amidst these events, the Chibi Finance team suddenly disappeared. Their social media accounts on Twitter and Telegram, as well as their website, became inaccessible.

The Chibi Finance incident highlights the increasing number of fraudulent activities in the Arbitrum and Ethereum Layer 2 ecosystem. In the previous month, developers of another Arbitrum-based project known as Swaprum also vanished, taking approximately three million dollars with them.

This recent event once again underscores the necessity of focusing on the security issues within the Layer 2 solutions in the Ethereum community. It is crucial for users to exercise caution, conduct detailed research on the reliability of projects, and invest in projects with trustworthy teams in order to safeguard their investments.

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