Arbitrum-based decentralized exchange (DEX) ArbiSwap was made available to robust users on March 2nd, and at press time, the ARBI token has lost more than 99% of its value.
The token crashed from $1.5 to $0.0000000093 after the carpet.
ArbiSwap developers controlled the platform’s liquidity pools as they placed most of the ARBI pairs at launch.
According to PeckShield, the ArbiSwap deployer minted 1 trillion tokens and then swapped them for USDC, resulting in a significant decrease in the value of ARBI in the USDC/ARBI pair on the DEX. The exploiter then performed a spatial arbitrage trade on the next block and exchanged the USDC back to ARBI, then exchanged everything for Ethereum – and made a total profit of 68.47 ETH from the transaction.
Based on on-chain data, the Arbi carpet pullers stole approximately 84 ETH from the project and moved it to Tornado Cash.
ArbiSwap launched on February 24th and claimed to offer ARBI holders 100% of earnings generated on the DEX. The DEX claimed to have reached a total value of $1 million within 30 minutes of its launch on the platform and managed a total TVL of $4.4 million, according to DeFiLlama data.
In addition, ArbiSwap promoted yield farming and staking services with APYs over 1000% on ETH and Bitcoin pairs.
The developers behind the platform were anonymous and it’s unclear if any legal action will be taken after the rug is pulled. Due to the nature of the crypto industry, such scams have been common throughout its history.
People continue to fall for marketing programs that promote services that offer gains that seem too good to be true. The severe lack of education and awareness surrounding crypto means it is fertile ground for scammers.
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