Arbix Finance, an audited and ostensibly reliable yield farming platform, has been identified as a “rugpull,” resulting in the deletion of its website, Twitter account, and Telegram channel as well as the transfer of $10 million in bitcoin deposits.

Rugpulls, often referred to as “exist scams,” occur when fictitious platforms or cryptocurrencies are established with the intention of raising money for a purportedly genuine “business,” only to vanish with the deposited cash.

Decentralized networks are inherently unreliable, thus organisations like CertiK try to assess them through audits that look for indications of fraud, weaknesses, privacy issues, etc. in a token’s smart contracts.

In Arbix’s situation, CertiK’s performed an audit on November 19, 2021, whose results had previously been a justification for consumers to believe Arbix Finance.

But as of right now, according to a tweet from CertiK, Arbix is now considered a rug-pull after it was discovered that the token’s smart contract was minting 10 million ARBIX to addresses under the owner’s control before selling them for Ethereum.

“You can withdraw funds to an address that has no ETH balance in order to maintain your anonymity. The new address ensures perfect secrecy by making it impossible to connect any ETH withdrawals to deposits.”

Although the money’s whereabouts are being tracked, there is now little probability that it will be found.

Yield farming is dangerous.

Because it offers cryptocurrency investors payments without doing anything, yield farming is an alluring idea.

Users fund yield farming platforms with cryptocurrency, and then allow automated algorithms keep track of changes in the prices of different tokens and distribute performance returns (harvest yields) to investors in accordance with their trading threshold settings.

Since many of these systems are either unsecure or unreliable, the major hazards associated with the entire concept are cyber theft and fraud.

A comparable platform called Harvest Finance experienced a cyberattack in October 2020 that resulted in the loss of $24 million from subscribers.