Arbitrum-Based DEX ArbiSwap Rugs Its Users, $ARBI Plummets 100%

• ArbiSwap developers minted a trillion ARBI tokens and swapped them for USDC and ETH.
• ARBI is down 100%.
• The rogue developers moved the stolen funds through the Etheruem-based mixer Tornado Cash.

ArbiSwap, one of the first decentralized exchanges built on Ethereum Layer-2 Arbitrum, has seemingly rug-pulled its users.

On Thursday, the developers behind ArbiSwap minted a trillion new ARBI tokens and swapped them for USDC and then for ETH. ARBI plummeted from $1.5 to a fraction of a cent in seconds.

The rogue developers could do so because they control ArbiSwap’s liquidity pools. Some industry observers believe that ArbiSwap is hardrugging, meaning they’re draining every pool available on...