The recently launched decentralized finance (DeFi) project that operates on the Layer 2 network of Arbitum, Chibi Finance, allegedly made off with approximately $1 million in user deposits.
According to the security firm, PeckShield, 555 Ethereum (ETH) platform liquidity pools were drained, which amounts to $1 million.
PeckShield pointed out that Chibi Finance took tokens from users present on its platform and converted them into Ethereum. The allegedly stolen funds were funneled from the Arbitrum network to Ethereum and sent through Tornado Cash.
“Sounds like robust #Chibifinance. ~$1 million worth of cryptocurrency drained. The stolen funds, which were exchanged for ~555$ETH, were transferred from #Arbitrum to Ethereum. They have already been transferred to Tornado Cash”, he warned.
#PeckShieldAlert Seems like #chibifinance rugged. ~$1M worth of cryptocurrencies were drained.
The stolen funds, which have been swapped for ~555 $ ETH, were bridged from #Arbitrum to Ethereum.
They have already been transferred into Tornado Cashhttps://t.co/HmVeZmWJS4 pic.twitter.com/1wM8j86fS4—PeckShieldAlert (@PeckShieldAlert) June 27, 2023
In the midst of the alleged theft of funds from Chibi Finance's social networks, Twitter and Telegram, as well as the project website, chibi.finance, “disappeared” and are disabled.
