A potential client of the blockchain Technology Equity financing (Defi) project under the lawsuit was paid out after a $2 million vulnerability test.

CertiK, a Web3 security company, marked the incident on Feb. 21 after the Hope Finance Twitter account announced that its customers had been defrauded.

The small details of the project are hard to come by. The site's Twitter account was released in January 2023 and describes a scheme for an algorithmic stabilization system called $Hope, which dynamically manages ETH supplies based on its prices.

The article on the account claimed that an Algerian Chinese citizen carried out the scam and transferred more than $1.86 million to Tornado Cash shortly after the website was officially launched on Feb. 20. A member of the verification team told Cointelegraph that the fraudsters modified the small details of the smart contract, causing assets to be sucked away from the hope financial startup agreement:

"it seems that the fraudster modified the TradingHelper contract, which means that when 0x4481 enables OpenTrade in Genesis RewardPool, the assets will be transferred to the fraudster."

According to an article dated Feb. 13, Hope Financial's smart contract has been audited by senior Cognitos auditors. Cointelegraph checked the audit introduction, which described two key contract role system vulnerabilities.

This includes inappropriate modifiers and the probability of reentry attacks. Although some system vulnerabilities were identified, Cognitos found that the intelligent contract code had been successfully approved.

After the outbreak of fraud, it is hoped that finance will share information with users and obtain the liquidity of bets from the agreement according to the role of emergency withdrawals.

Arirum is an Etherum Layer 2 inductive Internet dedicated to the exponential expansion of smart contracts. While positive and optimistic, the two Layer-2 agreements continue to stay in the Etherum ecosystem to resolve more and more transactions.