Magnate Finance Rug-Pulls Users of $6.5 Million in Exit Scam
Magnate Finance, a lending and borrowing platform on Coinbase’s Base protocol, has rug-pulled its users of $6.5 million. This comes after warnings from on-chain sleuths, such as ZachXBT, about the possibility of an exit scam due to suspicious actions by the project’s founders.
Key Points:
– Magnate Finance deleted its Telegram group, took its website offline, and removed its social media presence, raising concerns among users.
– The project developers manipulated the price oracle and removed all assets, causing the collapse of the $6.4 million total value locked (TVL) in the protocol.
– Scammers behind the project transferred $1.34 million worth of Dai tokens to a new address and bridged $1 million of the stolen funds to the BNB Smart Chain.
– The majority of the profits have been bridged to Ethereum L2 platforms Arbitrum and Optimism, along with the BNB Smart Chain through Stargate.
– Exit scams and rugpulls have become common in the decentralized finance ecosystem, with $656 million lost in such scams during the first half of 2023.
Hot Take
This latest rug-pull by Magnate Finance highlights the need for caution and due diligence when investing in the crypto space. Exit scams and rugpulls have become increasingly prevalent, taking advantage of the decentralized nature of the industry. It serves as a reminder to always research and verify the legitimacy of projects before committing any funds. Stay vigilant and protect yourself from potential scams.
Coinan Porter stands as a notable crypto analyst, accomplished researcher, and adept editor, carving a significant niche in the realm of cryptocurrency. As a skilled crypto analyst and researcher, Coinan’s insights delve deep into the intricacies of digital assets, resonating with a wide audience. His analytical prowess is complemented by his editorial finesse, allowing him to transform complex crypto information into digestible formats.