Magnate Finance Rug Pull: $6.4 Million Lost on Base Network
– Magnate Finance, a DeFi lending protocol on the Ethereum layer-2 network Base, conducted a rug pull, stealing $6.4 million worth of assets from its users.
– The project developers manipulated the price oracle provider to withdraw all assets from the platform.
– The stolen funds have been transferred to other Ethereum layer 2 solutions, while some DAI and ETH remain on the Base Network.
– The deployer address of Magnate Finance is linked to two previous rug pulls, resulting in a total loss of $16.7 million for users.
– The Base Network has faced other setbacks, including a rug pull by BALD and hacks on Rocketswap DEX and LeetSwap.
Hot Take: Base Network Struggles with Security Issues
The recent rug pull on Magnate Finance is just the latest in a series of troubling incidents on the Base Network. With a total loss of $6.4 million, users have once again fallen victim to fraudulent developers. This highlights the need for stronger security measures and due diligence within the crypto space. The Base Network has faced multiple setbacks, including rug pulls and hacks, raising concerns about the platform’s security. However, despite these challenges, Base has shown resilience and positive growth in terms of daily transactions and total value locked. It remains to be seen how the network will address its security issues and regain users’ trust.
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