Arbalest Finance Flags Suspicious Transactions, Swapping $90K USDC

Recently, Cyvers Alerts reported suspicious transactions involving Arbalest Finance. According to the reports, the Arbalest deployer has bridged 90,000 USDC to Ethereum, subsequently depositing it into Tornado Cash. 

These transactions have raised concerns within the cryptocurrency community, especially as Arbalest Finance’s website and Twitter account are currently inaccessible.

Bridging USDC to Ethereum

Arbalest Finance has bridged a significant amount, 90,000 USDC, from their platform. As reported by Cyver Alerts, this transaction can be traced to Arbiscan, which highlighted the first major movement of funds. The bridging of such a substantial amount of USDC immediately raised eyebrows among crypto enthusiasts and experts alike. The transaction details were accessible, showing the flow of USDC to Ethereum.

🚨ALERT🚨Our system has detected some suspicious transactions involving @ArbalestFinance!

Arbalest deployer has bridged 90K $USDC at https://t.co/PpaJ7ijKlD

90K $USDC have been swapped to $ETH and deposited to @TornadoCash! at https://t.co/ZRNT80YTP9

It's worth noting that… pic.twitter.com/X4J3av2Mxd

— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) May 13, 2024

On the same accord, the funds were not merely transferred but also swapped for Ethereum. This step adds complexity to the transaction, indicating potential intentions to mask the origin of the funds. The process of swapping USDC to Ethereum is commonly used to diversify assets or prepare for further transactions. Nevertheless, in this case, it was followed by depositing Ethereum into Tornado Cash, a known platform for obfuscating transaction trails.

The use of Tornado Cash by Arbalest Finance is particularly concerning. Tornado Cash is often utilized to enhance privacy by mixing significant amounts of cryptocurrency, making it difficult to trace the funds’ origins. This method, while legitimate for privacy, is frequently scrutinized due to its potential misuse for illicit activities.

Inaccessibility of Arbalest Finance’s Digital Presence

Compounding the apprehensions, Arbalest Finance’s online portal, arbalest.finance, is presently unresponsive. Efforts to access the site have been futile, sparking conjecture about the firm’s operational viability. The site’s unavailability further coincides with recent dubious transactions, heightening unease within the community.

Cyvers Alerts noted in an X post:

“It’s worth noting that their website, www.arbalest[.]finance, appears to be inaccessible, and their Twitter account has been deactivated.”

Moreover, the deactivation of Arbalest Finance’s Twitter account adds another layer of mystery. The social media account, which previously served as a primary communication channel for updates and announcements, is no longer available. This sudden deactivation raises questions about the company’s transparency and the reasons behind its abrupt digital silence. 

The website’s inaccessibility, coupled with the Twitter account’s deactivation, suggests potential internal issues within the organization. These developments could imply internal challenges, security breaches, or deliberate attempts to evade scrutiny. The lack of communication channels leaves stakeholders and users in the dark regarding the company’s current activities and plans.