Magnate Finance on Base Rug Pulls $6.4 Million
People are talking about Coinbase's Base these days. They like to get involved in crypto projects on Base and make investments. It looks like criminal actors are more active over there and keep scamming and rug-pulling the crypto project. Investors are getting rekt and have negative experiences.
Magnate Finance is a borrowing and lending platform on the Base Layer 2 protocol. Unfortunately, it pulled an exit scam and ran away with $6.4 million. What if you get to know this just before being an exit scam? You might do your best to withdraw your crypto and stay away from this platform.
The interesting thing is, on-chain analyst and crypto expert ZachXBT tweeted about it and warned the crypto community about Magnate Finance's possible exit scam. Magnate Finance's deployer address is linked to the Solfire exit scam. Due to the exit scam of Solfire, $4.8 million was lost.
Just in an hour of this warning from ZachXBT, Magnate Finance disappeared. They deleted their Telegram group and took the website down. Users cannot get access to its website anymore. They also deleted X's account as well as vanished from any social media presence.
Thanks to ZachXBT for detecting Magnate Finance's abnormal behavior earlier and informing the crypto community about the possible rug pull. ZachXBT also found links with the Kokomo Finance exit scam that was based on Optimism. So criminal actors of Magnate Finance were also involved with two DeFi protocols rug pulls.
It appears that the same bad actors are behind all these three exit scams. Who knows what is their next target? It gives crypto a bad name and people may not feel comfortable getting involved in crypto projects. Becoming a victim and losing cryptocurrency is a terrible experience.
The total value locked (TVL) before the collapse of Magnate Finance was $6.4 million. Developers of the protocol manipulated the price oracle and removed the assets, as per blockchain security firm PeckShield's analysis. MAG token price dropped to 90%. Criminal actors try to get away with this.
Being early in any platform gives you more advantages, but it is also associated with high risk. You may not know which crypto project will survive and do better. Investing in a crypto project that was planned to be an exit scam can hurt you the most financially and psychologically.
Never go all in into a single thing that is capable of destroying everything. Allocate that portion of your capital to invest in risky crypto projects that you can handle. Wish you would not have to deal with unfavorable situations. Watch out and stay safe in crypto.
