Crypto Scam Alert: Arbix Finance Goes Up in Flames After Rug Pull Accusations
As cryptocurrency investing becomes more commonplace, coin and token research is of key importance. All too often, investors get in over their heads with startups, often being courted by promises of big gains or futuristic technology. Some of these projects are true to their word, but there are many projects that will fail out. Even worse, there are many projects that take advantage of investors. Today serves as a reminder of that unfortunate reality, as investors digest a crypto scam alert from a reputable auditing service.
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CertiK is a crypto auditing project that has earned familiarity with many crypto investors. The CertiK team combs through crypto projects’ websites, white papers and code to find bugs, identify errors and stamp projects with a certificate of authenticity. The service keeps running tabs on the most secure crypto projects to invest in; developers will even apply to have CertiK audit their projects. A clean audit shows investors that they are legitimate and prioritize security.
Oftentimes, a CertiK audit will come back with a list of errors and bugs, along with advice for fixing the errors. The website also tracks the status of errors, so users know when they are patched. Sometimes, though, the news comes back much more grave. This happens to be the case today, as CertiK issues an alert to investors about a project.
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Crypto Scam Alert Issued Against Arbix Finance
The crypto scam alert coming from CertiK today is being levied against Arbix Finance. Arbix is a protocol on the Binance (CCC:BNB-USD) Smart Chain; it claims to be a DeFi platform through which users can stake assets for passive income. It runs primarily on the ARBX token.
Incident Analysis👇
1. $ARBX contract has mint() with onlyOwner function
2. 10M $ARBX were minted to 8 addresses
3. ~4.5M ARBX were minted to: 0x161262d172699cf0a5e09b6cdfa5fee7f32c183d
4. The 4.5M ARBX were then dumped
— CertiK Security Leaderboard (@certikorg) January 4, 2022
After a thorough review, CertiK is advising investors to steer clear of Arbix and the ARBX token, or to get out while they can. A tweet explains that the firm believes Arbix to be a rug pull scam. A look at the code revealed a privilege functionality, which allowed developers to mint millions of ARBX tokens. 4.5 million ARBX were minted to one wallet, which then immediately dumped the bag.
In the wake of the accusation, it appears Arbix has all but disappeared. CoinGecko reveals the ARBX price to have dropped nearly all the way to $0. Meanwhile, the project’s website and Twitter accounts have vanished.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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