- ETHTrustFund DAO allegedly stole $2M and laundered funds via mixer apps.
- Developer Peng went silent months before the rug pull and deleted all accounts.
- Besides ETHTrustFund, other recent rug pulls in crypto include Gemholic and Ordiz, showing rising fraud risk.
In a troubling development for cryptocurrency investors, the ETHTrustFund DAO, a decentralized autonomous organization (DAO) operating on the Base network, has been accused of conducting a $2 million rug pull.
The allegations, substantiated by recent reports by 0ctoshi, suggest that the project executed a deliberate exit scam.
According to a detailed report by blockchain security firm PeckShield, ETHTrustFund transferred its entire treasury to a new wallet on July 20, 2024.
The funds were subsequently moved through mixer applications, such as Tornado Cash and Railgun, in an apparent attempt to obfuscate the trail and launder the stolen assets.
#PeckShieldAlert #rugpull @0ctoshi reported that @ethtrustfund_ rugged ~$2m worth of cryptos on #Base.
The scammers have already bridged the stolen funds to #Ethereum & laundered them via #Tornadocash & #Railgun https://t.co/jmKVgiQb8C pic.twitter.com/MzJsvQ1pyV— PeckShieldAlert (@PeckShieldAlert) July 22, 2024
The rise and fall of ETHTrustFund
ETHTrustFund, which had modeled itself after successful projects like Olympus and Wonderland, initially attracted investors with promises of a unique rebase mechanism.
The project was designed to offer blockchain-based bonds and issue new ETF tokens to users who staked their holdings.
Unlike traditional rebaseDAOs that continually inflate their token supply, ETHTrustFund aimed to eventually debase its tokens to increase the value of the remaining supply, generating yield for its investors.
However, the project’s trajectory took a dramatic turn when lead developer Peng reportedly ceased communication with the community in April.
According to Octoshi, Peng’s inactivity, coupled with the sudden disappearance of ETHTrustFund’s online presence, including its website and social media accounts, pointed towards a potential exit scam.
Octoshi first highlighted the issue on July 21, 2024, reporting that the project had moved over $2 million from its treasury to a fresh wallet, and was draining the funds via Railgun Project.
The project’s official Telegram and social media accounts, previously…