SwirlLend on Coinbase Layer 2 Base Is An Exit Scam
The lending platform SwirlLend turned into an exit scam. This platform was active on Base and Linea. You might not have thought of this project to do a rug pull and end up like this. Looks like bad actors are very active on Base.
Coinbase is one of the popular cryptocurrency exchanges and most people have their first experience in crypto on Coinbase. They are excited about Coinbase Layer 2 Base. Criminal actors come up with different tactics to exploit and steal investors' crypto assets.
According to the blockchain security firm PeckShield, SwirlLend made its first move by transferring almost $289,500 worth of cryptocurrency from Base. Then the criminal actors moved 94 ETH from Linea and brought cryptocurrency to the Ethereum network.
Victims will take action in order to recover the crypto assets. But SwirlLend intends to get away with this. Criminal actors sent 253.2 ETH to the crypto mixer Tornado Cash. They close their website and social media accounts as well. They did not keep an option to communicate with them. They will definitely not like to give any answer about the rug pull.
People use lending protocols in crypto and it has a great use case. But if bad actors make their plan to exploit like this, people will have a hard time trusting this platform in the future. People who have a negative experience will stay away from this.
Losing crypto is a painful experience. People who lost their crypto assets can resonate with this. The central authority gets a chance to crack down on crypto more which makes it difficult to get involved in crypto. No one wants to get in trouble and lose their cryptocurrency.
SwirlLend's total value locked (TVL) on Base was $784,300. Now it comes down to $49,200. Victims will find a way to get what they can from this platform. From the beginning, bad actors plan to exploit and make more people fall for their scams. They show their true color later when they carry out an exit scam.
RocketSwap, a decentralized exchange on Base, was exploited and ended up losing $865,000. Then SwirlLend showed people its true color and did what it intended to do from the beginning. Do you think surviving and making money in crypto is easy? Well, losing your money in crypto is also easy. So consider the risk before doing anything in crypto so that you can handle the situation.
Many people cherish from such services to turn into scam platform but most of people use bot to determinate what lending protocol to execute and then you could be victim of scam lending platform for example.