$6.4 mn Lost In Base-Native DeFi Protocol Rug Pull
According to reports, Magnate Finance, a DeFi lending protocol on the Ethereum layer-2 network Base, carried out a rug pull and took $6.4 million worth of assets from its users. Only one month after the Base network’s official mainnet launch, this incident is the most alarming one to date.
On August 25, Peckshield confirmed Magnate Finance’s rug pull, stating that developers manipulated the price oracle provider, allowing them to withdraw all assets. They transferred $1.34 worth of DAI to a new address and bridging $1 million of loot to the BNB chain.
Most stolen funds have been transferred to Ethereum layer 2 solutions like Optimism and Arbitrum, while $1.3 million DAI and 295 ETH, valued at $486,000, remain on the Base Network. ZachXBT, an X user and on-chain investigator, posted a community alert indicating the possibility of such an event.
(With inputs from Shikha Singh)
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