By George Ward
The cryptocurrency world has been rocked by the news that Arbitrum DEX ArbiSwap has allegedly rug-pulled its users. According to RugDocIO, the platform developer, ArbiSwap, has swapped its contract to a new address containing a “recoverToken” function.
This function is designed to “recover” user funds to the developer.
ArbiSwap and the Arbitrum Protocol
The whistleblower brought this to the attention of the cryptocurrency community via its Twitter handle. He warned users not to interact with the website in any way.
This is extremely important, as interacting with the website could result in the developer taking your funds away. The ArbiSwap project is a decentralized exchange based on the Arbitrum protocol.
It was designed to provide a low-cost and secure solution for token trading. The project’s team claims it is the most secure DEX on the market, and its users’ funds’ security is paramount.
Unfortunately, it appears that this claim has been broken. According to the security agency, the malicious function was added to the smart contract, allowing the developers to steal users’ funds.
The agency also claims that the developers have been engaging in suspicious activities and manipulating the order books to benefit themselves. The ArbiSwap team has yet to comment on the allegations.
They have not even explained why the malicious function was added to the smart contract.
Security’s Important Role
They may be aware of the rug pull. But they haven’t disclosed taking any steps to rectify the situation. The recent rug pull incident has sparked concern within the cryptocurrency community regarding the risks associated with decentralized exchanges.
It serves as a reminder of the critical role that security and due diligence play when dealing with digital assets. It is essential for users to always be cautious when using decentralized exchanges.
Cryptocurrency traders should always research and investigate any exchange before using it. It is also essential to be aware of the risks associated with trading on DEXs.
The ArbiSwap rug-pull is yet another example of the dangers of decentralized exchanges.