Magnate Finance, a lending project operating on Coinbase’s newly launched Base blockchain has experienced a devastating rug pull attack, resulting in a loss of more than $6.4 million.
What’s even more concerning is the link between the perpetrators of this latest rug pull and their involvement in past scams, collectively amassing a jaw-dropping profit of $16.7 million.
Beosin security firm highlighted in a recent update that the saga of rug pulls involving these individuals began with Solfire’s token. This incident alone resulted in a loss of $4.8 million for investors who had placed their trust and funds in the Magnate Finance projet.
Magnate Finance on #BASE has rug pulled for $6.4M.
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, 2023That makes a total profit of $16.7M for the scammers. https://t.co/jl7rhRnt7C pic.twitter.com/SfL3dk4wW0
— Beosin Alert (@BeosinAlert) August 25, 2023
Additionally, the trend continued with Kokomo Finance’s token, which experienced a rug pull in March 2023, causing investors to lose a staggering $5.5 million.
Moreover, PeckShield blockchain security firm hinted that the scammers behind the recent scheme resorted to cunning tactics by manipulating the price oracle provider, wiping out all associated assets. When the rug was finally pulled, the value of the project plummeted, leaving investors shocked and betrayed.
#PeckShieldAlert #exitscam The TVL of Magnate Finance on #Base has dropped ~$6.4M
The developer modified the provider of the price oracle and removed all the assets. pic.twitter.com/cveB4jrrGc
— PeckShieldAlert (@PeckShieldAlert) August 25, 2023
In the aftermath of the rug pull, the value of MAG, the native token of Magnate Finance protocol, experienced a dramatic plunge. The token, which was previously poised for success, fell by more than 90%, leaving investors with losses and broken expectations. MAG is currently trading at $0.0008184, a stunning drop from its previous highs.
Rising Concerns Over Rug Pulls on Coinbase Layer 2 Base, as pointed by Magnate Finance Case
The launch of the Coinbase Layer 2 Base blockchain in August was anticipated with great excitement, promising enhanced scalability and efficiency for users. This optimism, however, has been tainted by a number of rug pulls and exit scams stemming from projects housed on this exact platform.
A recent report from Crypto-Economy has raised concerns about the future of Base. The report revealed alarming insights, including the discovery of over 500 fraudulent tokens on the platform.
Among these deceitful tokens are 300 with covert capabilities to generate an infinite supply, 60 that prohibit customers from reselling their holdings, and 70 that levy unexpected transaction fees. This distressing revelation calls into question the security and integrity of Base, posing a substantial hurdle to the platform’s future.
