ETHTrustFund Rug Pull Shocks Base Network Investors
In a devastating turn of events, ETHTrustFund (ETF), a promising protocol on the Base network, has executed a rug pull, leaving investors reeling from a $2 million loss. The incident, which involved the transfer of funds to privacy-focused mixer apps Tornado Cash and Railgun, has sent shockwaves through the cryptocurrency community and raised questions about the security of investments on emerging networks.
ETHTrustFund had positioned itself as an OHM fork, capitalizing on the excitement surrounding the Base network and the growing interest in ETFs. The project successfully attracted substantial investment by leveraging community enthusiasm and meme culture. However, the trust built over months of development was shattered when the project’s anonymous developer, known only as Peng, suddenly went silent for three months after raising over $2 million for the treasury.
The Unraveling of ETHTrustFund
Suspicions were first raised by crypto community figure Octoshi, who alerted others to a series of suspicious fund transfers and the project’s sudden inactivity. The fraudulent scheme came to light when the project abruptly moved 607 ETH, equivalent to $2.1 million, from its treasury to a new wallet. This amount was then bridged from the Base network to Ethereum, signaling the beginning of the end for ETHTrustFund.
In an attempt to obscure the trail of stolen assets, the scammers employed the privacy features of Tornado Cash and Railgun mixer apps. These platforms, known for their ability to obfuscate transaction histories, were used to launder the ill-gotten funds, making it challenging for authorities and blockchain analysts to trace the money’s path.
Aftermath and Ongoing Investigations
In the wake of the rug pull, ETHTrustFund’s online presence has been systematically erased. The project’s website has gone offline, and all associated social media accounts have been deleted, leaving investors with little recourse. This incident marks another blow to the Base network, which previously suffered a $6.4 million rug pull involving Magnet Finance in August of last year.
Crypto crime fighters, including Octoshi and Ogle, have taken up the mantle of tracking and reporting such incidents. They are actively urging affected investors to come forward with information and are working tirelessly to hold the scammers accountable. As the cryptocurrency community grapples with this latest breach of trust, the ETHTrustFund rug pull serves as a stark reminder of the risks associated with investing in emerging protocols and the ongoing need for vigilance in the decentralized finance space.
