The cryptocurrency community reported that xKingdom, a project on the Arbitrum (ARB) network, has suddenly ceased operations. The project’s official Twitter account has been deleted and the website is no longer accessible.
Allegedly, the project team stole Ethereum (ETH) staked by users, converted it to Tether (USDT), and then transferred it to the Ethereum mainnet. The estimated profit from this transaction is approximately 552 ETH, equivalent to approximately $1.02 million.
The funds are currently believed to be stored at Ethereum address 0xCA…74c6 and are reportedly shuffled using the privacy tool Tornado.Cash, making the funds difficult to track.
Cyvers, a cryptocurrency security firm, confirmed the claims, saying:
“Our system detected a rugpull operation on XKING. The scammer, the address on the ARB transferred all funds to ETH. $1.24 million deposited into Tornado Cash.”
In addition to the website and Twitter account, all other social media accounts associated with xKingdom have also been taken down. However, it is thought that some funds belonging to the fraudster remain in central exchanges and can be recovered.
*This is not investment advice.
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Source: https://en.bitcoinsistemi.com/rugpull-shock-in-the-arbitrum-ecosystem-project-developer-disappears-with-user-funds/