Oct 2021 - AnubisDAO Liquidity Pulled - $60m (Global)

"Some Ancient Digital Coins!" "Anubis DAO is a unique protocol built on KCC. Anubis features a dynamic buy back along with a dynamic sell tax, both depending on slippage. Anubis also has a Black Hole address creating the ultimate un-dumpable deflationary token."

"AnubisDAO was a medley of the Shiba Inu meme and Anubis, the Egyptian deity Anubis and was a fork of OlympusDAO, a decentralized reserve currency backed by bonds sales and liquidity provider fees. OlympusDAO’s formula has proved very popular and has spawned dozens of spinoffs."

"2% Redistribution. Token holders are rewarded through a redistribution fee on every transaction." "4% to The Book of the Dead. The Book of the Dead (buyback contract) accumulates KCS from transaction fees. Whenever someone sells Anubis, The Book of the Dead buys an amount of tokens proportional to the price impact of the sell and burns them." "4% Development. Funds needed to send Anubis to the moon." "The Black Hole. 60% of the supply is burned up front. This wallet, like every other holder, gets rewards from transactions, reducing the supply and making Anubis hyper-deflationary."

"Over course of Wednesday initial ideation+front end and contract work is done. Plan is to do LBP launch the next day. Rather than doing a whitelist/presale of any kind — plan was to portion out a % of supply to PebbleDAO (which is why 7.5% of supply sent to PebbleDAO multisig. By late Wednesday night EST, had setup Discord/Twitter, announcement had been put out that LBP would be tomorrow on Copper."

"Anubis is launching with 1 trillion total supply, 60% burned, 40% into the Kudex liquidity pool." "10% static fee on buys. 10-40% dynamic sell fee based on slippage. The liquidity fee is split between the Book of the Dead and the team address for a ratio of 50/50. The fees accumulated in the buyback contract will then be used to prevent dumps of the token." "15 second cooldown between each buy and sell." "Liquidity will be locked as soon as the token launches."

"Between 10:00 and 11:20 AM EST DAO members agree to have Beerus deploy the LBP as other DAO members are either unavailable to do so or do not want responsibility over the LBP. DAO members send a total of 310 ETH from new wallets to the LBP launch wallet." "Multisig sends 522,727,065 ANKH to hot wallet under Beerus’s control for him to deploy LBP later on."

"It appears that the project, called AnubisDAO, raised $60 million with the sale of its token, ANKH."

"20 hours after the sale, the liquidity in the pool was sent to a different address." "The millions of dollars in ether that was pushed into the token sale that took place on the Copper website was then sent to a different address."

"AnubisDAO was trading at about $0.18 on Thursday prior to its launch but the price suddenly crashed to $0.03, while liquidity dropped to zero. This was after $60 million worth of liquidity had been pooled by investors in the days leading up to it. A message from the AnubisDAO team followed, offering an explanation and promising a call to clear up what had happened."

"AnubisDAO devs promised a “community call” after the liquidity pool was drained on [October 28th] but nothing has been forthcoming, leading to the community suspecting a rug pull. The fact that the project’s Discord is in an announcement-only setting with no channels for discussion also points to the fact that something untoward has taken place."

"No such call has been forthcoming and all methods of directly contacting the team have been disabled, suggesting that, indeed, an exit scam has taken place and the team has waltzed off with the money. Any hopes of remaining legitimacy in the project rest on a call coming today, the first day back after the weekend. If nothing is forthcoming, as appears to be the case, then investors can kiss goodbye to their funds."

"An investor named Brian Nguyen said he lost $ 470,000 and admits he likes the project because of the canine image it was marketed with and the recent successes of the coin meme such as Shiba Inu and Doge. An investor offering 1000 ETH everyone would identify the controller of the address that emptied the record."

"People on Twitter found some transactions that connected the wallet that received the funds to a Twitter account named @Beerus, but the account has been deleted. The Twitter account's owner claimed - under another account - that it appeared they were the subject of a phishing attack." "Meanwhile, the suspect developer, who goes by the name Beerus, claimed to have opened a malicious link from a PDF, exposing the private keys used for the project’s liquidity bootstrapping pool (LBP) launch."

"Friday 10/29, sometime between 6:30 and 7:58 AM EST — Beerus claims to have opened a malicious link from a PDF which exposes the private keys used for LBP launch. “AnubisDAO Liquidity Rug 1” wallet may have been compromised during this timeframe."

“I am now cooperating with the police and following all investigations.”

"According to one of the leaders in the DAO, who goes by the name Sisyphus, the critical mistake was giving full control of the liquidity pool to a single developer." “The alleged PDF phishing attack drained all the Anubis funds but Beerus personal wallet funds are intact and under his control,” according to Sisyphus. “With a high degree of certainty I can say the Anubis rug probably was not a phishing attack,” said Sisyphus on Twitter, adding that he believes one of his team members went rogue.

“Over the course of Friday, Beerus’s real-world information is collated from a large number of sources and partially released to the public online through several Twitter channels,” added Sisyphus, mentioning that in the meantime, the suspect developer went to the Hong Kong police and filed a police report, while turning over one PC unit.

"Saturday 10/30 11 AM — 12 PM EST: 13 ETH is sent to Tornado.cash from a wallet affiliated with the attacker/rug wallets (3 transactions for 1 ETH and 1 transaction for 10 ETH). 2 deposits are made into this wallet from Coinbase."

“I expect the path forward from here will be driven by law enforcement given that the attacker has not yet returned funds despite ETH bounty,” [Sisyphus] concluded, hoping that the authorities will see the matter through.

Further Analysis

Anubis DAO was a new liquidity pool and token with some unique tokenomics. $60m was raised from investors through the purchase of the ANKH token before the liquidity disappeared. It appears that the liquidity was left in the hands of a single developer, who claims to have clicked on a phishing email link.

How Could This Have Been Prevented?

The clear issue in this case is storing the funds in the hands of a single developer. As the team has agreed in their assessment, a multi-signature wallet should have been used.

More Cryptocurrency Exchange Hacks/Scams/Frauds

AutoShark Finance Flash Loan Attack > > < < Cream Finance Lending Attack

Sources/Further Reading

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