AnubisDAO: From Trendy Investment to DeFi Disaster
In October 2021, AnubisDAO capitalized on the then-thriving Dogecoin trend, amassing a significant 13,556 ETH from optimistic crypto investors. Less than a day into the investment, a massive rug pull saw these funds diverted to a different address, creating an immediate and significant loss for the investors.
Unveiling the Scandal: A Peek into Blockchain Forensics
Blockchain forensics firm PeckShield played a critical role in bringing this illicit activity to light. Their research showed that between July 15 and 16, the person controlling the stolen 13,556 ETH started moving these funds through Tornado Cash, a decentralized protocol designed for private transactions. As shown in the screenshot below, these transactions were made in 100 ETH chunks.
Current Status of the Stolen Funds
Once worth nearly $60 million, the stolen ETH funds have almost doubled in value over the last two years, reaching around $26.2 million at the time of writing. The investors who were duped by AnubisDAO are watching helplessly as their funds vanish into the ether.
Lessons for Investors: Vigilance and Research are Key
Although some investors maintain hope of a possible refund, experts advise that thorough research on a project and its founders is crucial before making any crypto investment. The AnubisDAO debacle serves as a stark reminder of the risks involved in the DeFi sector.
Fallouts of the Scandal: Impact on Other Protocols
Following a multichain exploit, Geist Finance, a lending protocol, has been forced to permanently shut down. The team confirmed in a recent post that they have no plans to restart lending and borrowing activities on Geist. Technical complications related to the scandal have also impacted other coins such as Magic Internet Money (MIM) or Fantom, rendering it “impossible” for Geist Finance to re-enable lending.
Conclusion: An Ongoing Saga of DeFi Vulnerabilities
The AnubisDAO incident underscores the inherent risks and vulnerabilities of the nascent DeFi sector. Even as the stolen funds fade into oblivion, the echoes of this scandal resonate within the crypto community, prompting investors and project founders to take a more cautious and diligent approach to DeFi investments.
Despite the setbacks faced by platforms like Geist Finance, there remains a steady determination to ensure the security and integrity of the decentralized finance space. As the ecosystem continues to evolve, stakeholders are hopeful that improved measures and regulations will curb such illicit activities, restoring trust and promoting a safer investment environment. The saga of AnubisDAO serves as a sobering reminder to all – regulators, investors, and developers – of the pressing need for vigilant and comprehensive oversight in the world of decentralized finance.