Magnate Finance Robbed Its Users Of $6.4 Mln

Magnate Finance, a decentralized lending protocol built on Ethereum’s Base scalable layer-two network, swindled its users out of $6.4 mln. All social accounts associated with the project have been disabled and deleted. Magnate Finance was launched earlier this month. Rug pull was carried out by the project developers by manipulating price oracles. According to DeFiLlama, a total of $6.4 mln was withdrawn from Magnate Finance, bringing its TVL to $0.

MAG, the native cryptocurrency of the Magnate ecosystem, has fallen over 90.5%. CoinStats data shows that the value of the token is currently only a fraction of a cent. The official website of the protocol is currently unavailable. Hours before the rug pull took place, on-chain sleuth ZachXBT gave the crypto community prior notice. Zach, who once suffered from a rug pull, claimed that the Magnate Finance deployer’s address is directly linked to a previous Solfire exit scam in which $4.8 mln was stolen.

It is noteworthy that this is not the first rug pull in the Base network. After its launch in early August, a lending project SwirlLend pulled off an exit scam, sneaking away with about $460,000 in customer funds. There have been other rug pulls over the past few months. For example, Arbitrum-based DeFi project Swaprum robbed its users of almost $3 mln in May. In March, another Arbitrum-based protocol committed an exit scam that managed to abscond with over $112,000 in assets.

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