Magnate Finance, a popular lending company operating on the Ethereum Layer 2 network Base, appears to have conducted an exit scam, absconding with approximately $6.4 million.
Security firm PeckShield labeled this event as a rug pull, a phrase denoting crypto developers deceitfully vanishing with the deposited funds of the users. The investigation conducted by PeckShield revealed that Magnate Finance manipulated the price oracle used by the lending platform to drain all user deposits.
Since then, the Magnate Finance team has completely wiped out its online presence, erasing social media accounts on platforms like X and Telegram, and rendering the official website inaccessible. The exit scam was exposed following a warning issues by on-chain analyst ZachXBT after they raised concerns about the potential for an exit scam involving Magnate Finance on Base.
This suspicion emerged via the discovery that the deployer address for Magnate Finance was directly linked to a previous exit scam related to a project called Solfire, which had defrauded $4.8 million.
August has been a troublesome month for Base, as this incident marks the second rug pull observed within the month. Earlier in August, SwirlLend similarly disappeared with $460,000 in an exit scam on Base, with additional funds being stolen on Linea as well.
Millions Lost As Magnate Finance Initiates Rug Pull
![](https://files.constantcontact.com/b44f1673801/74802db7-30b0-4b60-ab47-a1eff7f13d30.jpg)
![](https://cryptoweekly.co/img/CryptoWeekly-Logo.png.webp)
Subscribe to the CryptoWeekly Newsletter
Get the top stories, funding deals, technical analysis, cryptocurrency jobs and much more delivered to your inbox, every Monday morning.
![](https://files.constantcontact.com/b44f1673801/007fb39e-64a1-44d1-97a3-6bb63fbe3ecc.jpg)
September 07,2024
Here Is How To Protect Yourself Against Crypto Hackers
![](https://files.constantcontact.com/b44f1673801/bcb9aa30-2af3-45c0-b0a6-695e0fe2811c.jpg)
September 06,2024
Telegram Users Can Now Report Illegal Content In Private Chats
![](https://files.constantcontact.com/b44f1673801/74acd2e6-5cca-423a-ac05-6c11afa3cb21.jpg)
September 06,2024
EigenLayer Will Redistribute 86 Million Tokens In Season 2 Airdrop
![](https://files.constantcontact.com/b44f1673801/b0ac91e4-071f-4ec7-8a19-00c9bbfe3050.jpg)
September 05,2024
Richard Teng Demands Tigran Gambaryan Be Released Immediately
![](https://files.constantcontact.com/b44f1673801/7f1d072f-aba9-438e-b837-dc87942c1fb8.jpg)
September 05,2024
Robinhood Being Forced To Pay Massive Fine For Previous Ban
![](https://files.constantcontact.com/b44f1673801/f804f702-8ce4-4eab-ad22-f68184cbd0d1.jpg)
September 04,2024
Hackers Promote Fraudulent Trump Family Project
![](https://files.constantcontact.com/b44f1673801/ef78b196-b83a-40f0-b7a5-6afc6d611299.jpg)
September 04,2024
John Deaton Challenges Elizabeth Warren After Clinching Republican US Senate Primary
![](https://files.constantcontact.com/b44f1673801/e7fa3941-2075-493f-977a-2d444234d2df.jpg)
September 03,2024
WazirX Hacker Moves Stolen Funds To Tornado Cash
![](https://files.constantcontact.com/b44f1673801/30e804d5-317b-4791-85a9-2789be796c1c.jpg)
September 03,2024
Here Is Why September Is A Crucial Month For Crypto
![](https://files.constantcontact.com/b44f1673801/f0400e30-e320-4f0c-9d1c-c88bed6ff723.jpg)
September 02,2024
A New Era For Cardano Begins As Chang Hard Fork Goes Live
![](https://files.constantcontact.com/b44f1673801/86254ea6-6147-4373-a42d-1952e8fa8803.jpg)
September 02,2024
BTC Miners Experience Worst Revenue Month Since September 2023
![](https://files.constantcontact.com/b44f1673801/1f8410b4-84a0-45f9-96cf-9873e5c22712.jpg)
September 02,2024