ArbiSwap, a decentralized exchange (DEX) on the Arbitrum network, has scammed its users out of more than $100,000 through a rug pull

The recently launched ArbiSwap application has been accused of conducting a rug pull, resulting in the removal of more than $100,000 from the platform's liquidi

By Inside Crypto archive3 Mar 2023, 12:01 am

ArbiSwap, a decentralized exchange (DEX) on the Arbitrum network, has scammed its users out of more than $100,000 through a rug pull — Image preserved from the Inside Crypto archive

Archived from Inside Crypto. The original publication date is shown above; later developments may not be reflected in this article.

The recently launched ArbiSwap application has been accused of conducting a rug pull, resulting in the removal of more than $100,000 from the platform's liquidity pools.

The price of ArbiSwap's native ARBI tokens plummeted from $1.5 to a fraction of a cent within the last 24 hours, after developers minted 1 billion fake tokens and exchanged them for USD Coin (USDC) and almost 69 ether (ETH), taking advantage of their control over the project's liquidity pools. Despite having total locked value (TVL) of $4.4 million and offering low-fee cryptocurrency swapping, ArbiSwap's website links were not functional at the time of writing, and the developers could not be reached for comment.

This scenario represents a classic rug pull, where developers promote a decentralized finance application via social media, launch a token and a decentralized exchange (DEX), and then disappear after investors purchase the token, causing liquidity to be removed.

From the archive