Incident Overview
The Chibi Finance project on the Arbitrum network was hit by a rugpull, resulting in a loss of 1,052,646 $USD.
Chibi Finance is an Arbitrum-based yield farming protocol. On June 27, 2023, a malicious transaction with draining assets from three contracts took place. A scammer used a privileged function setSettings() to set a malicious contract as a Governance contract.
They then withdrew funds from three smart contracts: StrategyAave, StrategySushiSwap, and StrategyGHA in a single transaction. Several assets were stolen, including 4.2 $WBTC, 256,012 $USDC, 94.6 $WETH, 115,049 $USDT, and SLP tokens as LP tokens for ARB/WETH pool. The stolen funds were valued at 1,052,646 $USD.
All the funds were swapped for $WETH and then bridged using Multichain and Stargate. The project's website shut down and the Twitter account was deleted shortly after an incident.
Scammer Address:
https://arbiscan.io/address/0x80c1ca8f…da58e3
Deployer Address:
https://arbiscan.io/address/0xf0b6dcb0…2acd25
Malicious Transaction:
https://arbiscan.io/tx/0x3cb65210…85db95
Funds Bridging Transactions:
https://arbiscan.io/tx/0x5fad3397…782707
https://arbiscan.io/tx/0xe7a9c825…d4f73c
Malicious Contract:
https://arbiscan.io/address/0xb6122218…0fd6ee
Incident Report
Protocol Information
What the Attacker Needed to Succeed
Understanding the prerequisites for this type of attack helps auditors identify protocols that are most at risk and helps developers build better defenses.
What Auditors Should Check
If you're auditing a protocol with similar architecture to Chibi Finance, these are the critical security checks that could have prevented this incident (June 2023).
- Verify all logic paths related to Rugpull are guarded by proper access controls and input validation
- Review privileged functions (owner, admin, governance) for potential abuse vectors - centralization risks should be documented and bounded with timelocks or multi-sigs
Master these auditing techniques with hands-on labs and real exploit scenarios in the Smart Contract Hacking course.
Free TrialSecurity Audit History
- Audit Report 1 Report
Sources & References
Learn to Prevent the Next Chibi Finance
The Chibi Finance hack is one of many attacks that skilled auditors are trained to detect before deployment. Master real exploit patterns and defense techniques with hands-on Web3 security training.