New rug sweater in the DeFi – Certik pins Arbix Finance

Arbix Finance knocked out – Since the arrival of the decentralized finance (DeFI), the number of cryptocurrency scams has increased tenfold. Now you have to be even more careful than before. Certik has identified a new one on the Binance Smart Chain (BSC).

Spot cryptocurrency scams

In the crypto universe, and in particular in the industry Challenge, hacks and scams thanks to cryptocurrencies are more and more numerous. The security of protocols is becoming an increasingly present factor. The integrity and rigor of smart contracts is therefore now a essential point when creating a new project.

“In the blockchain world, code rules and applies the logic of transactions. Code implementation, however, is untrustworthy and may contain bugs that lead to vulnerabilities. As an example (…), take a look at the DAO exploit that resulted in a $ 150 million hack. “

Ronghui Gun, co-founder of Certik

However, in recent months a slew of New projects DeFi have emerged. This shows that it is no longer mandatory to be a code genius to develop your own protocol. This brings up the question of knowledge and therefore of legitimacy of the developer (s) in order to avoid security failures or worse the direct scams.

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The Arbix Finance scam pinned by Certik

Arbix Finance is a Yield Farming protocol. You are going to deposit an amount in cryptocurrency in a liquidity pool. But in most cases this chest in which you deposit your cryptocurrencies belongs to a protocol. This is why it is important to have as much information as possible on the protocol holders.

This is what happened with Arbix Finance. This Tuesday, January 4, Certik communicated via its Twitter account to warn its users that Arbix Finance was a rugpull [arnaque propre à la finance décentralisée] and that they should absolutely not interact with the project.

Publication of Certik – Source: Twitter

“Arbix Finance has been identified as a rugpull. Privileged functionalities appear in the identified smart contracts. The team currently investigating above. DO NOT interact with the project.

The Certik company found many reasons to qualify the project as rugpull. In particular the fact that the development team assigned itself 4.5 million tokens of the protocol. These tokens were then dump [terme utilisé pour définir une vente extrêmement rapide du token]. In addition, a hacker managed to drain 10 million dollars from liquidity pools.

Unfortunately, scams of this type are very common in the field of decentralized finance and the overall loss due to this type of scam is estimated to be over $ 7.7 billion. A report of Chainalysis seems to indicate that rugpulls are the source of 37% of all scam revenues in 2021. We will recall in particular that of the OHM AnubisDAO fork where investors lost for a total of $ 57 million.

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