Cryptocurrency exchange ArbiSwap was forced by its own developer, resulting in the loss of user funds from one of its pools.
Suspicious of cryptocurrency exchange
ArbiSwap is suspected to be a scam, according to monitoring by DeFi security review agency Rugdoc.io. The agency advised users to withdraw their assets and revoke related rights as soon as possible. ArbiSwap users expressed their concerns on social media platforms, stating that the platform’s liquidity suddenly dropped, causing the token price to drop.
ArbiSwap is a relatively new DEX launched in the Arbitrum ecosystem, a Tier 2 scaling solution for Ethereum. The platform allows users to buy and sell various tokens, including its native token ARBI, and has gained popularity in recent months. But the platform’s sudden liquidity problems cast doubt and led to Rugdoc.io being watched.
https://twitter.com/RugDocIO/status/1631177485231734784
Rugdoc.io has become a leading agency in the DeFi security space by providing risk assessments and security audits for DeFi protocols. The agency’s monitoring of ArbiSwap caused panic among platform users, who feared losing their assets. The agency advised users to withdraw their assets and revoke related rights to minimize losses.
Rug Pull has become a common occurrence in the DeFi space and users should be cautious when investing in new protocols. The agency’s monitoring resulted in users withdrawing their assets and revoking related rights to minimize losses. This event is a reminder that DeFi protocols are not immune to fraudulent activity and users should be careful when investing in them.
Despite the hack, some funds are safe
ArbiSwap, a decentralized exchange (DEX) running on the Arbitrum network, has been solidified by its developer. This exploit was caused by contract swapping, which included a recoveryToken function that allowed the developer to get user funds back into their wallet. While non-local liquidity providers should be safe, Rug Pull targeted pool2 containing all the stolen funds.
According to cryptokoin.com data, ARBI’s price, which saw its highest level last week, fell by 100%. This sudden drop in price caused alarm among users as the token was trading at a relatively high price before liquidity issues.
Abuse victims can use the referrer address to remove their liquidity. Interestingly, Rug Pull made 85 ETH by pressing the ARBI/USDC LP pool and forgetting the ARBI/WETH pool. This action allowed an arbitrage bot to earn $112,000 for pool2 farmers.
Despite the hack, the funds of those who deposited on the first contract ending in 392B4 are safe. Users can interact directly with the contract to withdraw their funds and revoke permissions to keep their assets safe.
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