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HomeNewsETH Trust Fund Scandal: $2 Million Vanishes in Crypto's Latest Rug Pull...

ETH Trust Fund Scandal: $2 Million Vanishes in Crypto’s Latest Rug Pull Scam

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  • ETH Trust Fund DAO Accused Of $2 Million Rug Pull; Funds Transferred To A New Wallet Via Developers.
  • Scammers Utilized Mixer Apps To Conceal Their Trails, Laundering Stolen Funds Through Ethereum And Tornado Cash.

The Ethereum Trust Fund (DAO), a decentralized autonomous organization operating on the Ethereum network, has been implicated in a $2 million scam, leaving investors and the broader cryptocurrency community in shock. This incident underscores the increasing vulnerability within the digital asset space to fraudulent schemes.

Details of the ETH Trust Fund Scam

The scam unfolded when developers allegedly transferred $2 million from the fund’s treasury to an unknown wallet, subsequently shutting down the project’s website and erasing their social media presence.

Reports from the crypto community on X highlighted the abrupt disappearance of the ETH Trust Fund’s online activities, raising immediate alarms about the legitimacy of the operation.

Modus Operandi of the Scam

Security firm PeckShield detailed the transaction process, revealing that the developers utilized cryptocurrency mixing services to obfuscate the trail of the stolen funds. These services, such as Tornado Cash and Railgun, are often used to enhance privacy but can also be exploited to conceal illicit activities.

Source: X

According to PeckShield, the funds were converted to Ethereum and laundered through these platforms shortly after the transfer.

Background and Operation

The ETH Trust Fund was marketed to potential investors as an innovative investment platform, akin to an OHM fork utilizing blockchain technology for issuing and managing ETF tokens.

Investors were enticed with promises of profit from rebasing activities that ostensibly would increase the value of tokens in circulation. However, the project had been inactive for several months, leading to suspicions that culminated in the recent fraudulent event.

The Broader Impact on the Crypto Community

This latest scandal adds to a series of unsettling fraud cases within the cryptocurrency sector, including a recent $230 million theft from the Indian crypto exchange WazirX. The repetitive nature of these incidents highlights critical security issues within the industry and calls for enhanced regulatory and security measures to protect investors from similar scams in the future.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: info@ethnews.com Phone: +49 160 92211628
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