As a seasoned crypto investor with battle-scarred eyes from navigating the digital wild west of DeFi, I can’t help but feel a mix of disbelief and resignation upon hearing about yet another rug pull – this time, BaseBros Fi on the Base blockchain. It seems that history has a peculiar way of repeating itself in crypto, with new projects emerging only to vanish like a mirage once they’ve drained their investors dry.
It appears that BaseBros Fi, a financial yield optimization platform developed on the Base blockchain, is no longer in operation and it’s strongly suspected that they may have exited scam-style, leaving their investors high and dry.
As reported by ChainAudits, the project mysteriously vanished from sight on September 13, with its website and all associated social media profiles on platforms such as X and Telegram being erased without warning.
In this situation, it’s being suggested that the vanishing of funds is similar to a “rug being pulled,” meaning that investors are now left without a way to retrieve the approximately $130,000 they had invested, as reported by Cyvers on platform X.
Rug pull details
The rug pull was facilitated through an unaudited smart contract—a piece of self-executing code used in decentralized finance platforms to manage transactions and strategies. In this case, the contract contained a “backdoor” that allowed the BaseBros team to siphon off funds deposited by users.
On many decentralized financial systems, intelligent programs known as smart contracts play a significant role due to their ability to carry out intricate financial transactions without requiring intermediaries such as banks. Yet, it’s important to note that unchecked smart contracts may contain loopholes that can be exploited, potentially increasing the risk of investors’ funds being misappropriated.
Previously, Chain Audits inspected some of BaseBros’ smart contracts. It was later confirmed by Chain Audits that the malicious contract, labeled as the “Vault Contract,” which facilitated the theft, was not included in their initial audit and had not been verified on the blockchain. This unchecked loophole allowed the BaseBros team to siphon funds from the project’s “Strategy” contract, without tripping any security alarms, resulting in stolen funds.
When the incident occurred, BaseBros Fi had built up a significant fanbase, boasting over 2,000 users on platform X and more than 3,300 members on Telegram. The unexpected disappearance left the community in disbelief, as they not only lost their investments but also lost contact with the project team through all communication channels.
As per Cyvers’ findings, the attackers from BaseBros allegedly routed the stolen $130,000 via TORN, a cryptocurrency tumbling service aimed at concealing transaction histories. The widespread adoption of Tornado Cash in DeFi hacks has made it challenging to track down the misappropriated funds.
In July, the ETHTrustFund project on the Base network suffered what’s known as a rug pull, leading to approximately $2 million in losses for investors. The developers transferred the funds to a different wallet and stopped all communication. Subsequently, some of the stolen Ethereum was laundered using Tornado Cash.
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2024-09-16 19:47