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

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.