ETHTrustFund DAO Transfers $2M Treasury in Shocking Rug Pull

By: Antonio Smith / July 24, 2024

YEREVAN (CoinChapter.com) — ETHTrustFund (ETF), a Base network protocol similar to Olympus and Wonderland, transferred its entire $2 million treasury to new accounts on July 20. The funds were then laundered through Tornado Cash and Railgun mixer apps. After this, all websites and social media accounts linked to the project were deleted. Experts quickly labeled this a “rug pull” or exit scam.
Crypto investor and X user Octoshi reported the incident on July 21. He noted that the project’s treasury had moved to a new address the previous day.
ETHTrustFund Rug Pull Alert. Source: Octoshi.eth
On July 22, the blockchain security platform PeckShield confirmed these findings. Moreover, they reported that the developers transferred the funds to mixer apps, attempting to hide the trail.
ETHTrustFund $2M Rug Pull Exposed. Source: PeckShieldAlert
ETHTrustFund DAO: Innovative Plans, Sudden Exit, and Investor Losses
Archived developer documents describe ETHTrustFund as a decentralized autonomous organization (DAO) with rebasing features. The protocol issued blockchain-based bonds, selling them to investors for cryptocurrency. Additionally, it issued new ETF tokens to users who staked their tokens in the fund’s smart contracts.
ETHTrustFund planned a unique twist on the classic rebaseDAO model. Instead of always rebasing to create more tokens, the fund aimed to slow its inflation and start to “debase” or destroy its own ETF tokens. Consequently, this would increase the value of the remaining tokens while generating yield for tokenholders from the invested assets.
However, the debasing phase never started. According to Octoshi, ETHTrustFund’s lead developer, Peng, stopped responding to Telegram messages in April. Finally, on July 20, Peng exited the project, leaving investors unable to access their funds.
Recent Crypto Scams: Gemholic and Ordiz Bridge Leave Investors with Millions in Losses
Unfortunately, rug pulls continue to affect the cryptocurrency space. In June, the Gemholic protocol was accused of conducting a $3.5 million exit scam. Notably, the protocol had promised refunds to investors but transferred the funds to its team instead. Additionally, in March, the Ordiz bridge left investors unable to withdraw their funds after admin accounts deleted social media profiles and moved all remaining assets to new accounts. This resulted in $1.4 million in losses.

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