- ARBI fell by 100% due to liquidity drawdown
- The developer could replace the smart contract with the recoveryToken function
- Thus, customer funds were first collected in pool2, and then stolen
- Confirmed damage has already exceeded 85 ETH
Analysts from the Rugdoc community have noticed anomalous activity on the ArbiSwap DeFi exchange. Platform clients complained about a sharp drop in liquidity, which led to a “drawdown” in the rate of the native token.
Over the past 24 hours, the price of ARBI has fallen by 100% to $0.00000001016. And, apparently, it’s not about hacking, but about another ragpull. Recall that this is a type of fraud when the site developer takes the accumulated funds of users and simply disappears.
By according to Rugdoc.io, the exploit was caused by a substitution of a smart contract with the recoveryToken function, which should return users’ funds to their wallets. As a result, the cryptocurrency settled in pool2.
At the same time, foreign liquidity providers were not affected. Also out of danger are those users who deposited capital through the original contract (it ends with 392B4). However, it is also worth them to withdraw funds and revoke the rights.
At the moment, the scammers have already stolen about 85 ETH. These “coins” went to ARBI/USDC LP. At the same time, arbitrage bots earned $112,000 for pool2 traders.
ArbiSwap has not yet commented on the situation. Suspicions of ragpull undermine the reputation of the entire Arbitrum chain, which can lead to additional losses.
However, the very fact of fraud can be considered practically confirmed. Another cryptanalyst with the nickname “Forgiving” also declared about ragpull and shared the withdrawal address.
Unfortunately, this is by no means uncommon in the DeFi space. We previously reported on TeddyDoge and Defrost Finance projects, which also turned out to be fraudulent.