Scam Alert: Magnate Finance Exposed as Exit Scam on Base Blockchain
Just an hour after popular crypto sleuth, ZachXBT, alerted the community, Magnate Finance, a supposed legitimate lending protocol on the Base blockchain, pulled the rug on its users. Here are the key points:
– Magnate Finance’s deployer address was linked to two previous DeFi projects that were exit scams.
– The project’s website is now offline and its Telegram group has been deleted.
– The deployer’s address is directly connected to the Solfire and Kokomo Finance exit scams.
– Magnate Finance even replied to ZachXBT’s thread before going offline, suggesting they were aware of the scam allegations.
– The project’s Total Value Locked (TVL) surged to $6.4 million before dropping to zero.
PeckShield, a blockchain security platform, revealed that the developer manipulated the price oracle and removed all assets. Additionally, nearly $1 million of stolen funds were transferred to the BNBChain.
Base blockchain has been plagued by rug pulls and exit scams since its mainnet release on August 9th. Solidus Labs reported the presence of over 500 scam tokens on the platform.
Hot Take: Stay Vigilant in the Crypto Space
The Magnate Finance scam serves as a reminder to always conduct thorough research and due diligence before investing in any cryptocurrency project. The crypto space is full of risks, and scammers are constantly finding new ways to deceive investors. Stay vigilant, stay informed, and be cautious of projects that promise high returns with little to no transparency. Remember, if something seems too good to be true, it probably is.
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