Magnate Finance, a DeFi lending protocol on the Ethereum layer-2 network Base, is reported to have conducted a rug pull, robbing its users of $6.4 million worth of assets. This event represents the latest troubling incident on the Base network in merely a month of its official mainnet launch.<\/p>\n
On Friday, August 25, blockchain security intelligence Peckshield confirmed<\/a> Magnate Finance\u2019s rug pull, stating that the project developers manipulated the provider of the price oracle, allowing them to withdraw all assets of the platform.<\/p>\n Peckshield also provided more information on the scammers\u2019 movement, stating that they had transferred $1.34 worth of DAI to a new address while also bridging $1 million of the loot to the BNB chain.\u00a0<\/p>\n The majority of the stolen funds have been transferred to other Ethereum layer 2 solutions such as Optimism and Arbitrum. Meanwhile, the $1.3 million DAI and an additional 295 ETH, valued at around $486,000, remain on the Base Network.\u00a0<\/p>\n Magnate Finance on #BASE<\/a> has rug pulled for $6.4M.<\/p>\n The deployer is also linked to the past rug pulls:Solfire’s $4.8M rug on Jan 23, 2022 Kokomo Finance’s $5.5M rug on Mar 27, 2023<\/p>\n That makes a total profit of $16.7M for the scammers. https:\/\/t.co\/jl7rhRnt7C<\/a> pic.twitter.com\/SfL3dk4wW0<\/a><\/p>\n \u2014 Beosin Alert (@BeosinAlert) August 25, 2023<\/a><\/p>\n\n Interestingly, a few hours before the Magnate Finance rug pull occurred, an X user and on-chain investigator, ZachXBT, posted<\/a> a community alert stating the possibility of such an event.\u00a0<\/p>\n ZachXBT\u2019s suspicion was based on the fact that the deployer address of Magnate Finance received some funds from the Solifire\u2019s $4.8 million rug pull that occurred in January 2022.\u00a0<\/p>\n In addition, the deployer address of Magnate Finance is also linked to the Kokomo Finance $5.5 million exit scam in March 2023. In total, the developers of the Base DeFi lending protocol have been involved in three rug pulls that have resulted in the loss of $16.7 million of user funds.<\/p>\n At the time of writing, Magnate Finance has deleted its Telegram group, as well as disabled its official website. In addition, the project\u2019s X account has also been deactivated, wiping all of its online and social media presence in what has been a \u201cclassic rug pull.\u201d<\/p>\n The early days of the Base Network in the crypto space have been anything but smooth sailing<\/a>. Prior to the network\u2019s public launch on August 9, BALD, a memecoin project on the Coinbase native network, was exposed as a rug pull<\/a> after developers withdrew $25.6 million of the project\u2019s liquidity.\u00a0<\/p>\n Since then, there have been more negative occurrences within the Base ecosystem, with the Rocketswap DEX losing over $450,000<\/a> via \u201cbrute force hack,\u201d while 342 ETH, valued at $626,000, has also been stolen from LeetSwap<\/a>, another Base-native DEX.<\/p>\n However, it is worth stating that the Base Network has also recorded some positives<\/a> in its short time of operation. According to data from L2Beat data,<\/a> Base ranks as the fourth most active layer two solution with a daily transaction per second value of 7.73.<\/p>\n In addition, where the general total DeFi ecosystem has taken a dive below the $40 billion mark, Base has shown much resilience. Using data from DefiiLama<\/a>, the project\u2019s TVL gained by 11.02%\u00a0 in the last week and is now valued at $185.81 million.\u00a0<\/p>","protected":false},"excerpt":{"rendered":" <\/p>\n Magnate Finance, a DeFi lending protocol on the Ethereum layer-2 network Base, is reported to have conducted a rug pull, robbing its users of $6.4 million worth of assets. This event represents the latest troubling incident on the Base network in merely a month of its official mainnet launch.<\/p>\n On Friday, August 25, blockchain security intelligence Peckshield confirmed<\/a> Magnate Finance\u2019s rug pull, stating that the project developers manipulated the provider of the price oracle, allowing them to withdraw all assets of the platform.<\/p>\n Peckshield also provided more information on the scammers\u2019 movement, stating that they had transferred $1.34 worth of DAI to a new address while also bridging $1 million of the loot to the BNB chain.\u00a0<\/p>\n The majority of the stolen funds have been transferred to other Ethereum layer 2 solutions such as Optimism and Arbitrum. Meanwhile, the $1.3 million DAI and an additional 295 ETH, valued at around $486,000, remain on the Base Network.\u00a0<\/p>\n Magnate Finance on #BASE<\/a> has rug pulled for $6.4M.<\/p>\n The deployer is also linked to the past rug pulls:Solfire’s $4.8M rug on Jan 23, 2022 Kokomo Finance’s $5.5M rug on Mar 27, 2023<\/p>\n That makes a total profit of $16.7M for the scammers. https:\/\/t.co\/jl7rhRnt7C<\/a> pic.twitter.com\/SfL3dk4wW0<\/a><\/p>\n \u2014 Beosin Alert (@BeosinAlert) August 25, 2023<\/a><\/p>\n Interestingly, a few hours before the Magnate Finance rug pull occurred, an X user and on-chain investigator, ZachXBT, posted<\/a> a community alert stating the possibility of such an event.\u00a0<\/p>\n ZachXBT\u2019s suspicion was based on the fact that the deployer address of Magnate Finance received some funds from the Solifire\u2019s $4.8 million rug pull that occurred in January 2022.\u00a0<\/p>\n In addition, the deployer address of Magnate Finance is also linked to the Kokomo Finance $5.5 million exit scam in March 2023. In total, the developers of the Base DeFi lending protocol have been involved in three rug pulls that have resulted in the loss of $16.7 million of user funds.<\/p>\n At the time of writing, Magnate Finance has deleted its Telegram group, as well as disabled its official website. In addition, the project\u2019s X account has also been deactivated, wiping all of its online and social media presence in what has been a \u201cclassic rug pull.\u201d<\/p>\n The early days of the Base Network in the crypto space have been anything but smooth sailing<\/a>. Prior to the network\u2019s public launch on August 9, BALD, a memecoin project on the Coinbase native network, was exposed as a rug pull<\/a> after developers withdrew $25.6 million of the project\u2019s liquidity.\u00a0<\/p>\n Since then, there have been more negative occurrences within the Base ecosystem, with the Rocketswap DEX losing over $450,000<\/a> via \u201cbrute force hack,\u201d while 342 ETH, valued at $626,000, has also been stolen from LeetSwap<\/a>, another Base-native DEX.<\/p>\n However, it is worth stating that the Base Network has also recorded some positives<\/a> in its short time of operation. According to data from L2Beat data,<\/a> Base ranks as the fourth most active layer two solution with a daily transaction per second value of 7.73.<\/p>\nAnother Setback For Base?<\/strong><\/h2>\n
3 Rug Pulls, $16.7 Million Lost \u2013 Who\u2019s Responsible?\u00a0<\/strong><\/h2>\n
Another Setback For Base?<\/strong><\/h2>\n