ArbiSwap, a decentralized exchange (DEX) that runs on the Arbitrum network, has been rugged by its developer. The exploit was caused by the swapping of the contract, which included a recoverToken function that allowed the developer to recover user funds to their wallet. The rug pull was targeted at pool2, which contained all the stolen funds, while nonnative liquidity providers should be safe.

Victims of the exploit can use the router address, to remove their liquidity. Interestingly, the rug puller made 85 ETH by mint dumping on the ARBI/USDC LP pool and forgetting the ARBI/WETH pool. This action allowed an arbitrage bot to earn $112,000 for pool2 farmers.

Despite the hack, the funds of those who deposited in the initial contract ending with 392B4 are safe. Users can interact with the contract directly to withdraw their funds and revoke permissions to ensure that their assets remain secure.

(By Arman Shirinyan)

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