ETHTrustFund DAO accused of $2M rug pull in newest crypto rip-off

• ETHTrustFund DAO allegedly stole $2M and laundered funds by way of mixer apps.
• Developer Peng went silent months earlier than the rug pull and deleted all accounts.
• Apart from ETHTrustFund, different latest rug pulls in crypto embody Gemholic and Ordiz, displaying rising fraud threat.

In a troubling growth for cryptocurrency traders, the ETHTrustFund DAO, a decentralized autonomous group (DAO) working on the Base community, has been accused of conducting a $2 million rug pull.

The allegations, substantiated by latest experiences by 0ctoshi, counsel that the mission executed a deliberate exit rip-off.

In accordance with an in depth report by blockchain safety agency PeckShield, ETHTrustFund transferred its total treasury to a brand new pockets on July 20, 2024.

The funds have been subsequently moved by way of mixer functions, corresponding to Twister Money and Railgun, in an obvious try and obfuscate the path and launder the stolen belongings.

#PeckShieldAlert #rugpull @0ctoshi reported that @ethtrustfund_ rugged ~$2m value of cryptos on #Base.
The scammers have already bridged the stolen funds to #Ethereum & laundered them by way of #Tornadocash & #Railgun https://t.co/jmKVgiQb8C pic.twitter.com/MzJsvQ1pyV

— PeckShieldAlert (@PeckShieldAlert) July 22, 2024

The rise and fall of ETHTrustFund

ETHTrustFund, which had modeled itself after profitable initiatives like Olympus and Wonderland, initially attracted traders with guarantees of a novel rebase mechanism.

The mission was designed to supply blockchain-based bonds and concern new ETF tokens to customers who staked their holdings.

In contrast to conventional rebaseDAOs that regularly inflate their token provide, ETHTrustFund aimed to finally debase its tokens to extend the worth of the remaining provide, producing yield for its traders.

Nonetheless, the mission’s trajectory took a dramatic flip when lead developer Peng reportedly ceased communication with the group in April.

In accordance with Octoshi, Peng’s inactivity, coupled with the sudden disappearance of ETHTrustFund’s on-line presence, together with its web site and social media accounts, pointed in the direction of a possible exit rip-off.

Octoshi first highlighted the difficulty on July 21, 2024, reporting that the mission had moved over $2 million from its treasury to a recent pockets, and was draining the funds by way of Railgun Mission.

The mission’s official Telegram and social media accounts, beforehand managed by Peng, have 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.

The Chainabuse report, created by person @cryptogle, confirmed the allegations and emphasised the mission’s abrupt disappearance.

The wake of exit scams in crypto

ETHTrustFund’s incident follows a sequence of comparable scams within the crypto trade.

In June, the Gemholic protocol confronted accusations of a $3.5 million exit rip-off, whereas March noticed the Ordiz bridge admin accounts executing a $1.4 million fraud.

These instances spotlight the persistent threat of rug pulls within the quickly evolving cryptocurrency panorama, underscoring the necessity for vigilance and thorough due diligence amongst traders.