AnubisDAO Liquidity Rug 3, a defunct decentralized finance (DeFi) project, has created new controversy by reportedly transferring a significant amount of cryptocurrency funds worth around $5.6 million at current market value. While it is unclear why the project transferred such a large amount of funds, the move has raised questions about its accountability and transparency.
According to Etherscan, the transfer originated from the address associated with AnubisDAO Liquidity Rug 3 on the blockchain, but was sent through an intermediary address to Wrapped Ether and then to Tornado Cash. The project has not made any official statement regarding the transfer.
AnubisDAO was founded in August 2021 and claimed to provide higher yields than traditional investments. The project’s rise to prominence was fueled by a coordinated social media campaign that relied on memes and dog symbolism. The project’s website featured dog images and used terms such as “moonshot” and “to the moon”.
However, AnubisDAO’s success was short-lived, and the project collapsed amid allegations of fraud and embezzlement in October 2021. According to reports, the project’s creators had embezzled $60 million worth of ETH since its launch, resulting in significant losses for investors.
One investor named Brian Nguyen reportedly lost approximately $470,000 in the project due to its use of canine imagery for marketing. CNBC reported that Nguyen had lost his life’s savings to the project and was considering legal action against its creators.
In the aftermath of the scandal, AnubisDAO’s social media accounts were taken down, and its website became inaccessible. The project’s defunct Telegram group still features messages from disillusioned investors demanding accountability and answers from its creators.
Despite the scandal and the collapse of the project, AnubisDAO Liquidity Rugs continued to operate, taking advantage of the project’s notoriety and appealing to investors seeking high-yield investments.
The recent transfer of funds by AnubisDAO Liquidity Rug 3 has once again cast a shadow of doubt over the project’s credibility and highlighted the need for greater transparency and investor awareness in the DeFi space.
The DeFi industry has experienced explosive growth in recent years, with new projects emerging every day claiming to offer high yields and opportunities for profit. However, the decentralized nature of the technology means that projects are not subject to the same regulatory oversight as traditional financial institutions, leaving investors vulnerable to fraud and scams.
As a result, it’s more critical than ever for investors to undertake due diligence and take extra caution when investing in DeFi projects. The recent AnubisDAO scandal serves as a cautionary tale and a reminder for investors to exercise caution and do their research before investing in any project.