Developers have executed a rug pull on the ETHTrustFund project within the Base network, resulting in investor losses of approximately $2 million worth of Ethereum.

The fraudulent project suddenly transferred these funds from its treasury to a new wallet. Crypto community figure Octoshi was the first to highlight the scam, pointing out a series of suspicious fund transfers and the project’s abrupt inactivity.

RUG ALERT 🚨

Yesterday, the project known as ETHTrustFund sent +$2M from the treasury to a new wallet after months of intentional inactivity by the developer. It seems that he has decided to steal the funds.

According to Octoshi, the project’s developer, known only as “Peng,” had been unresponsive for the past three months. This silence came after months of building trust and raising over $2 million for ETHTrustFund’s treasury. The project’s website is now offline, and its social media accounts have been deleted.

ETHTrustFund marketed itself as a type of OHM fork, leveraging the excitement within the Base network community. It attracted significant investment by capitalizing on the network’s buzz, memes, and ETFs. While the project’s documentation remains accessible, all other traces have disappeared.

Blockchain security firm PeckShield confirmed the rug pull, revealing that the scammers had already laundered the stolen funds.

PeckShieldAlert reported that ETHTrustFund rugged ~$2m worth of cryptos on Base. The scammers have already bridged the stolen funds to Ethereum and laundered them via Tornado Cash and Railgun.

The perpetrators bridged the funds from the Base network to Ethereum and then used Tornado Cash and Railgun, both known for their privacy features, to obscure the trail of the stolen assets.

Etherscan data confirms these findings, showing that the developer siphoned exactly 607 ETH, equivalent to $2.1 million.

Detailed transaction logs from Etherscan indicate that one of the developer’s primary addresses moved 200 ETH to Railgun at 13:27 UTC. Shortly after, this address transferred another 200 ETH to Tornado Cash in two separate transactions. An additional 56.9 ETH was then funneled back to Railgun.

Base has been a hotspot for rug pulls recently, as market participants seek to ride on the growing FOMO surrounding the network. Last August, Magnet Finance, a protocol on Base, was rug-pulled for $6.4 million.

Solana has also experienced rug pulls, including incidents involving the URF meme coin and the CONDOM meme coin project. Both of these rug pulls occurred in April.

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