The Rise and Fall of ETHTrustFund
ETHTrustFund followed successful projects such as Olympus and Wonderland, initially attracting investors with a unique rebase mechanism. The project aimed to offer blockchain-based bonds and issue new ETF tokens to users who pledged their holdings. Unlike traditional rebaseDAOs that continuously increase the supply of tokens, ETHTrustFund aimed to eventually devalue its tokens in order to increase the value of the remaining supply and generate income for investors. However, the project’s trajectory took a dramatic turn when lead developer Peng reportedly stopped communicating with the community in April.
Accusations of a $2 Million Scam
Recent reports from 0ctoshi corroborate accusations against ETHTrustFund DAO, suggesting that the scheme was a deliberate exit scam. According to a detailed report by blockchain security firm PeckShield, ETHTrustFund transferred its entire vault to a new wallet on July 20, 2024. The funds were then moved through hybrid apps such as Tornado Cash and Railgun in an apparent attempt to obfuscate the traces and launder the stolen assets.
The Rise of Cryptocurrency Exit Scams
The incident involving ETHTrustFund is just one in a series of similar scams in the crypto industry. In June, the Gemholic protocol faced accusations of a $3.5 million exit scam, while in March, a $1.4 million scam was carried out on the Ordiz Bridge management account. These cases highlight ongoing risks in the rapidly evolving cryptocurrency landscape and underscore the need for investors to remain vigilant and conduct thorough due diligence.
