Magnate Finance: A Rug Pulling Incident on Base Protocol
Magnate Finance, a lending/borrowing platform on Coinbase’s layer 2 protocol Base, has rug-pulled its users of $6.5 million. Following the deletion of their Telegram channel, website, and social media presence, the project developers manipulated the price oracle and removed all assets, resulting in the collapse of $6.4 million in total value locked (TVL). The scammers behind the project transferred stolen funds to different wallets and bridged them to EthereumEther (ETH) is used to pay for computation and token swaps on Ethereum. Users "fuel" smart contracts and DApps with ETH. L2 platforms, the Binance chain, and Arbitrum and Optimism through Stargate. Despite these actions, around 295 ETHEther (ETH) is used to pay for computation and token swaps on Ethereum. Users "fuel" smart contracts and DApps with ETH. and 1.3M DAI are still held on the Base Chain. Exit scams and rug pulls have become common in the decentralizedWith normal currency, banks and governments control everything – they’re the central authority. But cryptocurrencies work differently! Instead of one central group calling all the... finance ecosystem, with $656 million lost in such incidents during the first half of 2023.
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