BSC-based produce farming protocol Arbix Finance was identified as a rug bridge by blockchain security company Certik.
as per the event of the firm Analysis, there were several reasons for flagging off this project. The security firm cites that in the ARBX contract with only the owner function mint(), 10 million ARBX tokens were minted at 8 addresses, and 4.5 million ARBX were minted at a single address. Subsequently, Certik confirmed that 4.5M mined tokens were then dumped.
The firm also reported that $10 million of funds deposited by users were directed to the unverified pool, and eventually, a hacker removed all assets from the pool.
Using the platform’s Skytrace to analyze fraud risk, the firm determined that the hackers exchanged funds in Ethereum through the decentralized exchange AnySwap USDT.
The term rag pull is used to define the incidents where developers abandon projects altogether after receiving massive amounts of investment in their fake crypto or decentralized finance project. Such scams are very prevalent in the crypto industry and globally there is a record of over $7.7 billion worth of cryptocurrency funds lost by scam victims.
A report by Chainanalysis suggested that Rag bridge contributed the most to the increase in funds lost through crypto scams in 2021. The report states that “37% of all cryptocurrency scam revenues in 2021” were rubbish.
related: How to Find Rag Bridges in DeFi – 6 Tips by Cointelegraph
Back in November 2021, investors lost approximately $57 million worth of Ether in a rug pull by AnubisDAO, a fork of OlympusDAO. Investors noted extraordinary gains in the popular canine-themed meme coins were some of the reasons they invested in Rag Bridge.
