Cryptocurrency project stole $ 1 million of client funds and liquidated itself

Blockchain security experts at PeckShield reported that 555 ETH were withdrawn from the cold storage of the Chibi Finance DeFi platform and sent to the Tornado Cash cryptomixer.

on June 20, the Chibi Finance team suddenly disappeared, leaving customers with many unanswered questions. The fact is that all online profiles related to Chibi Finance, including the official website, Twitter account, and Telegram channel, have been deleted. At the request of the platform users, PeckShield conducted its own investigation into the situation and examined Chibi Finance’s digital footprint on the blockchain network. It turned out that Chibi Finance’s cold storage had been emptied, and all user funds placed on the Arbitrum network had been converted into 555 ETH.

To hide the digital trail and make it difficult for law enforcement to trace the funds, the Chibi Finance team used the Tornado Cash cryptomixer.

PeckShield experts noted that the incident with the missing Chibi Finance team and the use of Tornado Cash with criminal intent once again emphasize the need to remain vigilant when interacting with DeFi projects. Security experts are confident that users can overcome potential pitfalls only if they join the DeFi space with caution and a critical approach to the state of affairs — carefully checking the authenticity of project credentials and the transparency of its participants.

Interestingly, some crypto influencers on Twitter who had been promoting the project to their followers deleted their posts about Chibi Finance, which caused criticism from the community. In turn, CHIBI tokens plummeted by 98% in a few hours after the investigation was made public, and the cryptocurrency is currently trading at $ 0.965 911.