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Arbitrum-Based DEX ArbiSwap Rugs Its Users, $ARBI Plummets 100%

Published 03/02/2023, 11:10 AM
Updated 03/02/2023, 11:30 AM
Arbitrum-Based DEX ArbiSwap Rugs Its Users, $ARBI Plummets 100%
ETH/USD
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  • ArbiSwap developers minted a trillion ARBI tokens and swapped them for USDC and ETH.
  • ARBI is down 100%.
  • The rogue developers moved the stolen funds through the Etheruem-based mixer Tornado Cash.
ArbiSwap, one of the first decentralized exchanges built on Ethereum Layer-2 Arbitrum, has seemingly rug-pulled its users.

On Thursday, the developers behind ArbiSwap minted a trillion new ARBI tokens and swapped them for USDC and then for ETH. ARBI plummeted from $1.5 to a fraction of a cent in seconds.

https://twitter.com/PeckShieldAlert/status/1631192691563438081?s=20 The rogue developers could do so because they control ArbiSwap’s liquidity pools. Some industry observers believe that ArbiSwap is hardrugging, meaning they’re draining every pool available on the exchange.

So far, the developers have been able to steal around 69 ether (ETH) ($113,160). They have moved 84...

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