YEREVAN (CoinChapter.com) — ETHTrustFund (ETF), a Base community protocol much like Olympus and Wonderland, transferred its whole $2 million treasury to new accounts on July 20. The funds have been then laundered by means of Twister Money and Railgun mixer apps. After this, all web sites and social media accounts linked to the challenge have been deleted. Consultants shortly labeled this a “rug pull” or exit rip-off.
Crypto investor and X consumer Octoshi reported the incident on July 21. He famous that the challenge’s treasury had moved to a brand new deal with the day gone by.
On July 22, the blockchain safety platform PeckShield confirmed these findings. Furthermore, they reported that the builders transferred the funds to mixer apps, making an attempt to cover the path.
ETHTrustFund DAO: Progressive Plans, Sudden Exit, and Investor Losses
Archived developer paperwork describe ETHTrustFund as a decentralized autonomous group (DAO) with rebasing options. The protocol issued blockchain-based bonds, promoting them to buyers for cryptocurrency. Moreover, it issued new ETF tokens to customers who staked their tokens within the fund’s sensible contracts.
ETHTrustFund deliberate a singular twist on the traditional rebaseDAO mannequin. As an alternative of all the time rebasing to create extra tokens, the fund aimed to gradual its inflation and begin to “debase” or destroy its personal ETF tokens. Consequently, this could improve the worth of the remaining tokens whereas producing yield for tokenholders from the invested property.
Nonetheless, the debasing section by no means began. In line with Octoshi, ETHTrustFund’s lead developer, Peng, stopped responding to Telegram messages in April. Lastly, on July 20, Peng exited the challenge, leaving buyers unable to entry their funds.
Current Crypto Scams: Gemholic and Ordiz Bridge Go away Buyers with Hundreds of thousands in Losses
Sadly, rug pulls proceed to have an effect on the cryptocurrency area. In June, the Gemholic protocol was accused of conducting a $3.5 million exit rip-off. Notably, the protocol had promised refunds to buyers however transferred the funds to its group as a substitute. Moreover, in March, the Ordiz bridge left buyers unable to withdraw their funds after admin accounts deleted social media profiles and moved all remaining property to new accounts. This resulted in $1.4 million in losses.