SwirlLend Protocol Executes Rug Pull, Disappears with $460,000 in User Funds
SwirlLend, a lending protocol based on Layer 2 networks Base and Linea, has carried out an exit scam, leaving crypto readers wondering what happened to their funds. The developer of the project drained $290,000 from Base and $170,000 from Linea. This incident is the second significant exit scam on the Base network in recent weeks, following a similar occurrence involving the Bald meme coin.
Key Points:
– SwirlLend protocol executed an exit scam, taking approximately $290,000 in user deposits on Base.
– PeckShield confirmed the scam and revealed that the developer moved the funds to Ethereum, leaving around 92ETH on Base.
– SwirlLend was also rugged on the Linea chain, with approximately $170,000 worth of ETH bridged to Ethereum.
– The total value locked (TVL) on the SwirlLend protocol plunged from nearly $770,000 to just $49.21, according to DefiLlama.
– SwirlLend’s digital presence has vanished, with their social media platforms deactivated and their website inaccessible.
Another Setback for Base:
Base, the Ethereum Layer 2 network backed by Coinbase, has been facing a series of negative events recently. Besides the SwirlLend exit scam, projects on the Base network have suffered significant exploits. RocketSwap fell victim to a “brute force hack,” resulting in the theft of $860,000 in users’ funds. LeetSwap, a decentralized exchange, also experienced liquidity pool exploitation, losing $626,000 worth of crypto assets. However, Base has seen some success, with over 100,000 daily users just two days after opening to the public on August 9, 2023.
Hot Take:
The SwirlLend rug pull highlights the risks associated with investing in the crypto space. Despite the promising growth of Base and the increasing number of daily users, security vulnerabilities and exit scams continue to plague the network. Investors and users need to exercise caution and conduct thorough research before participating in any decentralized finance projects.
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