Ethereum Trust Fund Scams Investors Out of $2 Million

The crypto world is facing another crisis with a sharp increase in criminal activities. Recently, Indian crypto exchange WazirX was hacked, resulting in a loss of $230 million.

In a similar vein, the Ethereum (ETH) Trust Fund has reportedly scammed investors out of $2 million.

The ETH Trust Fund DAO, which operates on the base network, has been accused of a $2 million fraud.

According to a post by 0ctoshi on X, the project was a setup to defraud investors. They reported that the developers transferred $2 million from the project’s treasury to a new wallet after months of inactivity.

RUG ALERT 🚨

Yesterday, the project known as ETHTrustFund (@ethtrustfund_ now deleted) sent +$2M from the treasury to a new wallet, after months of intentional inactivity by the dev, it seems that he has decided to steal the funds 👇 pic.twitter.com/YcswifyHmQ

— Octoshi.eth (@0ctoshi) July 21, 2024

Security firm PeckShield confirmed the details, explaining that the funds were moved to a new wallet and then laundered through Tornado Cash and Railgun to hide the trail. Subsequently, the project’s website and social media accounts were deleted.

#PeckShieldAlert #rugpull @0ctoshi reported that @ethtrustfund_ rugged ~$2m worth of cryptos on #Base.
The scammers have already bridged the stolen funds to #Ethereum & laundered them via #Tornadocash & #Railgun https://t.co/jmKVgiQb8C pic.twitter.com/MzJsvQ1pyV

— PeckShieldAlert (@PeckShieldAlert) July 22, 2024

The ETH Trust Fund presented itself as an OHM fork, appealing to investors interested in memes and ETFs. It aimed to increase token value through a unique debasing approach. However, the project failed, and the development team, led by Peng, cut off communications three months ago.

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The recent fund transfers and the shutdown of accounts were part of the developers’ exit strategy.

Alexander Stefanov