ETHTrustFund DAO Transfers $2M Treasury in Apparent Rug Pull

The article details the apparent rug pull by ETHTrustFund DAO, involving a $2 million transfer to Tornado Cash and Railgun mixer apps and the subsequent deletion of all its websites and social media accounts.

Points

• ETHTrustFund DAO transfers $2 million to Tornado Cash and Railgun, indicating a rug pull.
• The project deletes all its websites and social media accounts.
• ETHTrustFund was designed as a decentralized autonomous organization （DAO） with rebasing features.
• The lead developer, Peng, stopped responding to messages before the rug pull.

ETHTrustFund （ETF）, a Base network protocol that advertised itself as similar to Olympus or Wonderland, has transferred $2 million from its treasury to Tornado Cash and Railgun mixer apps on July 20. Following this transfer, the project deleted all of its websites and social media accounts, leading security experts to conclude that this was a “rug pull” or exit scam.

https://x.com/0ctoshi/status/1815026461675335752
https://x.com/PeckShieldAlert/status/1815275372818428332

However, the debasing period appears to have never been reached. According to Octoshi, ETHTrustFund’s lead developer Peng stopped responding to Telegram messages in April before finally rugging the project on July 20.

解説

• The ETHTrustFund rug pull highlights the ongoing risks and challenges in the decentralized finance （DeFi） space, where projects can still operate with a significant degree of anonymity and lack of accountability.
• The use of Tornado Cash and Railgun mixer apps to obfuscate the trail of funds is a common tactic in exit scams, making it difficult for authorities to trace the stolen assets.
• The failure to reach the debasing period and the sudden disappearance of the project’s online presence are red flags that investors should watch for when evaluating DeFi projects.
• Investors must exercise caution and conduct thorough due diligence when participating in DeFi protocols, ensuring they understand the risks and the project’s governance structure.