ETH Trust Fund (DAO) Scam: $2 Million Rug Pull Shakes Base Network
The cryptocurrency community has been rocked by yet another scam, this time involving the ETH Trust Fund (DAO) project on the Base network. In a shocking turn of events, the project has been accused of executing a $2 million rug pull, leaving investors reeling from significant losses. The incident has once again highlighted the vulnerabilities within the crypto space and the need for increased vigilance among investors.
At the heart of this scam is the project’s developer, known only as Peng, who had been conspicuously absent for three months. The prolonged silence raised suspicions, but it was the sudden transfer of funds from the treasury to a new wallet that confirmed investors’ worst fears. This calculated move clearly indicated a premeditated exit scam, leaving the community in disbelief.
Unraveling the Scam
The first signs of trouble were detected by Octoshi, a prominent figure in the crypto community. Octoshi’s keen observation of the suspicious fund transfer and the project’s sudden inactivity set off alarm bells. The ETH Trust Fund had initially positioned itself as an OHM fork, leveraging the interest within the Base network community. Through clever marketing tactics involving memes and ETFs, the project had managed to attract substantial investment.
The investment mechanism employed by ETH Trust Fund was deceptively simple. Investors were promised ETF tokens in exchange for staking their holdings through blockchain-based bonds. The allure of increased token value and potential profits drew in many unsuspecting participants. However, this promise turned out to be nothing more than a facade for a well-orchestrated scam.
The Aftermath and Broader Implications
As the dust settles, the full extent of the rug pull has come to light. Approximately $2 million worth of Ethereum was transferred from the treasury to a new wallet by the developer. In a bid to cover their tracks, the funds were bridged to Ethereum and subsequently laundered using privacy-focused tools like Tornado Cash and Railgun. These details were confirmed by PeckShield, a reputable blockchain security firm, lending further credibility to the accusations.
In the wake of the scam, the ETH Trust Fund’s online presence has been completely erased. The project’s website has gone offline, and all associated social media accounts have been deleted, making it extremely challenging to trace the developers. This incident is not isolated, unfortunately. It forms part of a larger pattern of rug pulls on the Base network, with previous cases including Magnet Finance. The ETH Trust Fund scam serves as a stark reminder of the persistent threat of crypto crimes and underscores the critical need for enhanced security measures and due diligence within the industry.
