Kannagi Finance Rug Pull Incident: $2.13 Million Lost
Kannagi Finance, a decentralized yield aggregator, has rug pulled with an estimated $2.13 million of investor funds. The project erased its digital footprint and went offline, leaving investors with significant losses. Here are the key points:
- Kannagi Finance, a decentralized yield aggregator, has rug pulled with $2.13 million of investor funds.
- A rug pull refers to developers unexpectedly pulling liquidity from a pool, causing sharp losses.
- German blockchain security firm, SolidProof, audited Kannagi’s smart contract but not the contracts related to the rug pull incident.
- Crypto tracking platform, MistTrack, reports that $1.1 million worth of Ethereum from the rug pull has been sent to Tornado Cash crypto mixer.
- The incident is the latest to affect the zkSync Era network, following the $3.4 million hack of EraLend on July 25.
Kannagi Finance is a decentralized finance platform built on the zkSync Era network. It offers automated yield farming and passive income opportunities for crypto investors. However, the recent rug pull has resulted in a near 100% loss for users, with the total value locked dropping from $2.13 million to a mere $0.17. The incident has further damaged the reputation of the zkSync Era network after the EraLend hack. At present, zkSync Era’s TVL stands at $154.59 million, a significant drop from its all-time high of over $500 million.
Hot Take: The Kannagi Finance rug pull incident highlights the risks and vulnerabilities in the decentralized finance space. Investors must exercise caution and thoroughly research projects before investing their funds.
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