Magnate Finance Exit Scam: Lending Project Steals $6.4 Million
Magnate Finance, a lending project operating on the Ethereum Layer 2 network Base, has recently conducted an exit scam, resulting in an estimated loss of $6.4 million for its users. The security firm PeckShield has described this event as a rug pull, which refers to developers fraudulently running away with user-deposited funds. The scam involved the manual modification of the price oracle used by the lending protocol to drain all user deposits. The project’s team has completely erased their digital presence, including social media accounts and the official website.
Main breakdown of key points:
1. Magnate Finance conducted an exit scam, stealing $6.4 million from users.
2. The scam was carried out by manually modifying the price oracle.
3. The project’s team has deleted all social media accounts and made the website unreachable.
4. On-chain analyst ZachXBT had previously warned about the possibility of an exit scam.
5. This is the second rug pull incident on Base in August, with another project, SwirlLend, disappearing with $460,000.
It is concerning to see yet another exit scam in the crypto space, especially one that has caused significant financial losses for users. This incident highlights the importance of conducting thorough research and due diligence before investing in any crypto project. Always be cautious and skeptical of projects that promise high returns or have suspicious activities. Remember to rely on reputable sources for information and stay updated on the latest news and warnings from the crypto community. Stay vigilant to protect your investments.
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