Arbix Finance, a yield agriculture agreement based on Binance’s smart chain, was identified as a carpet pull by the blockchain security company CertiK.

According to the company’s events analyzeThere are many reasons why items are flagged. The security company stated that “ARBX contracts have mint() and onlyOwner functions, 10 million ARBX tokens were minted to 8 addresses,” 4.5 million ARBX were minted to one address. After this, CertiK confirmed that “4.5 million minted tokens were then discarded.”

The company also reported that the $10 million in funds deposited by users was directed to an unverified pool. Eventually, a hacker removed all assets from the pool.

The company used the platform’s Skytrace tool to analyze fraud risks and determined that hackers transferred funds to Ethereum through the decentralized exchange AnySwap USDT.

The term “carpet pull” is used to define an event in which developers completely abandon the project after obtaining a large amount of investment in their fake encryption or decentralized financial project. Such scams are very common in the crypto industry, and victims of scams worldwide have lost more than $7.7 billion in cryptocurrency funds.

A Chainalysis report indicated that the largest increase in financial losses caused by crypto fraud in 2021 is the carpet pull. notes “37% of all cryptocurrency scam revenues in 2021” is carpet-like.

related: How to discover carpet tension in DeFi: 6 tips from Cointelegraph

As early as November 2021, investors lost Ether worth 57 million USD (Ethereum) On the carpet of AnubisDAO, a branch of OlympusDAO. Investors pointed out that the huge gains from the popular canine-themed meme coin are part of the reason why they invest in the carpet pull.