ArbiSwap, a decentralized exchange (DEX) running on Arbitrum, was accused of “rug pulling” users and running away with money.
Based on on-chain data, on March 2, ArbiSwap DEX minted about 1 billion ARBI tokens, swapping this amount into USDC, causing the ARBI value in the exchange’s USDC/ARBI pair to drop significantly. The developer then executes an arbitrage on the next block and swaps USDC back to ARBI. This amount was then converted to ETH, earning about 69 ETH, worth more than 100,000 USD.
#PeckShieldAlert The @Arbi_Swap deployer minted 1BILLION $ARBI before a hard rug. They then swapped $ARBI for $USDCcause $ARBI in the USDC/ARBI pair dropped significantly. The next block a bot made a spatial arbitrage by swapping $USDC-> $ARBI-> $ETH to make a profit of 68.47 $ETH pic.twitter.com/VmgFrhzHWz
— PeckShieldAlert (@PeckShieldAlert) March 2, 2023
The price of ARBI on March 2 fell from $1.50 to near zero.
ArbiSwap is a new DEX launched on Arbitrum at the end of February 2023, providing a variety of cryptocurrencies swap service. The exchange is interested by the announcement that it will allocate all swap fees to ARBI holders.
This is considered a prime example of a “rug pull” – a project action that inflates the price and sells it immediately. Developers will launch a DeFi application, issue a token, and promote it. After building trust and attracting enough users to buy in, they remove liquidity, close the platform, and disappear.
Synthetic Kyptos
