- ETHTrustFund DAO allegedly stole $2M and laundered cash through mixer apps.
- Developer Peng went silent and deleted all his accounts for a number of months earlier than he was faraway from his place.
- Along with ETHTrustFund, different latest rug pulls in crypto embrace Gemaholic and Ordiz, reflecting the rising fraud threat.
In a troubling growth for cryptocurrency buyers, ETHTrustFund DAO, a decentralized autonomous group (DAO) working on the Base Community, has been accused of committing a $2 million fraud.
A latest survey has confirmed these allegations. 0ctoshi reportMeans that the venture carried out a deliberate exit rip-off.
In response to an in depth report by blockchain safety agency PeckShield, ETHTrustFund moved its whole treasury to a brand new pockets on July 20, 2024.
Later, the cash was transferred through assorted purposes comparable to Twister Money and Railgun, apparently as an try to hide and launder the stolen property.
#PeckShieldAlert #rugpull @0ctoshi reported that @ethtrustfund_ ~$2 million price of crypto #Base,
The scammers have already withdrawn the stolen cash #Ethereum and washed them #tornadoCash And #railgun https://t.co/jmKVgiQb8C pic.twitter.com/MzJsvQ1pyV— PeckShieldAlert (@PeckShieldAlert) July 22, 2024
The rise and fall of ETHTrustFund
ETHTrustFund, which modeled itself after profitable initiatives comparable to Olympus and Wonderland, initially attracted buyers with the promise of a novel rebase mechanism.
The venture was designed to supply blockchain-based bonds and problem new ETF tokens to customers who stake their holdings.
Not like conventional RebaseDAOs, which regularly improve the availability of their tokens, ETHTrustFund’s objective was to ultimately devalue its tokens to extend the worth of the remaining provide, producing a revenue for its buyers.
Nonetheless, the path of the venture took a dramatic flip when lead developer Peng stopped speaking with the group in April.
In response to Octoshi, Peng’s inactivity, and the sudden disappearance of ETHTrustFund’s on-line presence, together with its web site and social media accounts, level to a doable exit rip-off.
Octoshi first highlighted the problem on July 21, 2024, reporting that the venture had moved greater than $2 million from its treasury to a brand new pockets, and was draining the funds by way of the Railgun venture.
The venture’s official Telegram and social media accounts, beforehand managed by Peng, had been deleted.
Within the wake of those revelations, Octoshi urged the group to report the rip-off on Chainabuse, a platform devoted to documenting and combating fraudulent actions within the crypto area.
Chainabuse ReportA put up created by the person @cryptogal confirmed the allegations and emphasised the sudden disappearance of the venture.
Exit scams abound in crypto
The ETHTrustFund incident follows a collection of comparable scandals within the crypto business.
In June, the Gemaholic Protocol was accused of a $3.5 million exit rip-off, whereas in March, the Ordiez Bridge admin accounts had been accused of a $1.4 million fraud.
These instances spotlight the persevering with dangers within the quickly evolving cryptocurrency panorama, and underscore the necessity for vigilance and due diligence amongst buyers.
