Jul 2024 - ETHTrustFund Silent Developer Rug Pull - $2.1m (Global)
"Ethereum's First ETF - ETHTrustFund $ETF emerges as an elite crypto hedge fund, conceptualizing through a tri-phased growth model and craft to become the Top Treasury-Backed Currency Protocol on Base."
"ETHTrustFund positioned itself as a DAO with rebasing features, following the OHM playbook.
They issued blockchain-based bonds and implemented a "rebasing" mechanism for stakers.
They bragged to be the “Highest Return Yielding ETF On Earth”.
The fund promised to eventually "debase" or destroy its own ETF tokens, supposedly pushing up remaining token prices. All invested assets would allegedly generate yield for token holders."
"The dev, known only as Peng, spent months building trust and raising capital." "Investors believed the founder to be a seasoned dev, willing to build a legitimate project on the new chain."
"Yesterday, the project known as ETHTrustFund (@ethtrustfund_ now deleted) sent +$2M from the treasury to a new wallet, after months of intentional inactivity by the dev, it seems that he has decided to steal the funds"
"As the dust settled, users started looking for someone to blame. But "Peng" had already vanished into the crypto ether…"
"The founder, Peng, had deleted his Telegram, Twitter, the official Telegram of the project itself and was ignoring all messages and DMs."
"Social media accounts deleted, website down, only the ghostly remains of project docs were left behind, at least briefly, as those have been taken down too."
"All evidence pointed towards a classic rug pull/exit scam, with Base as the unwitting stage for this financial theater."
Further Analysis
ETHTrustFund, an Ethereum-based ETF-like project, aimed to be a top treasury-backed currency protocol using a rebasing mechanism similar to OlympusDAO. It promised high returns and a deflationary model to increase token value. However, after months of building trust and raising capital, the project's developer, Peng, executed a rug pull by transferring over $2 million from the fund's treasury to a new wallet. Subsequently, Peng disappeared, deleting all social media accounts and project-related communications. The project now appears to be a classic exit scam, leaving investors with significant losses and the project's online presence erased.
How Could This Have Been Prevented?
More Cryptocurrency Exchange Hacks/Scams/Frauds
UtopiaSphere Second Flash Loan Exploit > > < < Rho Markets Price Oracle Misconfiguration
Sources/Further Reading
Rekt - ETHTrustFund - Rekt (Dec 31)
https://cointelegraph.com/news/ethtrustfund-dao-transfers-treasury-apparent-rug-pull (Dec 31)
@0ctoshi Twitter (Dec 31)
Base Transaction Hash (Txhash) Details | BaseScan
(Dec 31)
Base Transaction Hash (Txhash) Details | BaseScan
(Dec 31)
Ethereum Trust Fund | $ETF (Dec 31)
Ethereum Trust Fund | $ETF (Dec 31)
Ethereum Trust Fund | $ETF (Dec 31)
ETHTrustFund – Medium (Dec 31)
ETHTrustFund rug pulls for $2.2 million (Dec 31)
Etf Upgraded V2 (Dec 31)
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