Chibi Finance was a defi project built on the Arbitrum Ethereum layer 2 network. Its Twitter bio described the project as “ChibiVerse For Chads, by Chibis. Compound dem yields!” What’s not to love.On June 27, the developers set the governance role to a malicious smart contract, which used a “panic” function to withdraw funds from the Chibi project. They then quickly swapped the funds to 555 wETH (~$1.05 million), bridged them to the Ethereum main chain, and laundered them through Tornado Cash.Chibi Finance has since deleted its website and Twitter profile. Meanwhile, some crypto influencers who had promoted the project caught heat for doing so.

Total loss estimated at $1,000,000.