Eth Trust Fund Fraud: How $2 Million Disappeared Overnight
Contributor: John Doe
- ETH Trust Fund accused of a $2 million scam.
- Developers transfer funds and close social media accounts.
It seems like another scandal is plaguing the crypto world again. Crypto crimes have been on the rise in recent days. Just a few days ago, Indian crypto exchange WazirX was hacked and $230 million was stolen.
Within this worrying pattern, Ethereum [ETH] Trust Fund defrauded investors of $2 million.
ETH Trust Fund Scam
ETH Trust Fund DAO (Decentralized Autonomous Organization) operates under the base network and is making headlines for stealing $2 million.
As 0ctoshi reported on his X page (formerly Twitter), the scheme was a scam and planned to exit by stealing investors’ funds. On his page, they reported that
“Yesterday, the project known as ETHTrustFund (@ethtrustfund_now deleted) transferred +$2 million from the treasury to a new wallet; after months of deliberate inactivity by the developer, it seems he decided to steal the funds.”
Source: X
Security firm PeckShield provided more details of the report. The company stated that the developers made transfers to a new wallet.
They further explained that mixer apps were used to cover their trail, which facilitated their theft process. Through their X page, PeckShield reported that
“the scammers have already redirected the stolen funds to #Ethereum and laundered them through #Tornadocash & #Railgun.”
Source: X
After these transfers, the website went offline and deleted all social media accounts.
The details
The project presented itself to investors as an OHM fork, which usually leverages the base network community to capitalize on the interest.
Since its inception, the project has attracted various investments as many crypto investors have shown keen interest in memes and ETFs. At the time of this writing, the project has disappeared and still cannot be traced.
During its operational period, it attempted to copy other successful projects such as Olympus and Wonderland. Reportedly, investors would receive ETF tokens after staking their shares via blockchain-based bonds.
The project aimed to take a different approach than other traditional RebaseDao. The project would debase tokens, thus increasing the value of tokens in supply and generating profits for investors.
Unfortunately, the project did not achieve its goals as the development team led by Peng cut off all communication with the team three months ago.
Therefore, the recent transfers and closure of all accounts were the endgame the developers hoped for as a perfect way out.
