As a seasoned analyst with extensive experience in the crypto space, I find the situation surrounding ETHTrustFund’s recent capital transfer and subsequent disappearance deeply concerning. Having closely followed the development of various rebase DAO projects over the past year, I was intrigued by ETHTrustFund’s unique approach to rebasing and yield generation. However, the sudden transfer of $2 million to mixer applications Tornado Cash and Railgun, followed by the project’s abrupt exit and disappearance from the web, raises serious red flags.
On July 20, the Ethereum-based network protocol ETHTrustFund (ETF), similar to Olympus and Wonderland in function, executed a significant funds transfer.
The widely recognized project, famed for its debasement and rebase functions, is reportedly said to have shifted $2 million from its funds to the Railgun and Tornado Cash scrambling apps. There’s substantial speculation that ETHTrustFund was planning a “rug pull” or exit scam following this transaction and the sudden vanishing of all its websites and social media presence.
On July 21st, I, as a cryptocurrency investor and X user named Octoshi, brought up a concern. The previous day, funds from the project had been moved to a new wallet address.
On July 22, PeckShield, a leading blockchain security firm, revealed their findings. The creators of ETHTrustFund are suspected to have transferred funds to the mixer applications Tornado Cash and Railgun, as indicated in PeckShield’s research, for what appears to be money laundering activities.
The documentation preserved in the ETHTrustFund archives reveals that the initial plan for the project was to create a decentralized autonomous organization (DAO) with the ability to rebase, much like projects such as Wonderland, Olympus, and their peers.
The company issued bonds based on blockchain technology to investors, accepting cryptocurrencies as payment. Furthermore, it rewarded investors who put their tokens into the fund’s smart contracts with extra ETF tokens through a process called “rebase.”
ETHTrustFund proposed a variation of the rebaseDAO model with a gradual reduction in new token issuance and subsequent destruction of existing ETF tokens to boost the worth of the surviving tokens. Additionally, they intended to utilize deposited assets to produce returns for token holders.
Despite the lack of evidence for a degrading period, Octoshi, headed by ETHTrustFund’s lead developer Peng, unexpectedly abandoned the project on July 20th. Starting from April, Peng had ceased responding to Telegram messages.
Crypto investors continue to grapple with the issue of rug pulls. In June, Gemholic was under suspicion for a $3.5 million scam, while in March, the Ordiz bridge experienced a loss of $1.4 million when the admins mysteriously vanished from social media and moved funds to new accounts.
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2024-07-23 01:08