It has been revealed that $6.4 million worth of assets were stolen from customers of Magnate Finance, a DeFi lending mechanism on the Ethereum layer-2 network Base. This is the most recent worrying occurrence to occur on the Base network in the short time since its mainnet deployment.
Peckshield, a blockchain security intelligence organization, verified Magnate Finance’s rug pull on Friday, August 25. The firm said the project creators altered the supplier of the pricing oracle, enabling them to remove all platform assets.
In addition, Peckshield disclosed that the fraudsters had moved $1.34 worth of DAI to a new location and bridged $1 million of the loot to the BNB network.
Interestingly, ZachXBT, an X user and on-chain investigator, released a community notice a few hours before the Magnate Finance rug pull stating the probability of such an occurrence.
ZachXBT suspected Magnate Finance of being involved in the $4.8 million rug pull perpetrated by Solifire in January 2022 since same month, Magnate Finance received payments at their deployer address.
In addition, the March 2023 $5.5 million Kokomo Finance exit fraud is connected to the same deployer address as Magnate Finance. The creators of the Base DeFi lending protocol have lost a total of $16.7 million in three separate rug pulls.
Magnate Finance has, as of this writing, taken down both its official website and its associated Telegram group. The project’s X account has also been disabled, thereby erasing all traces of it on the internet and social media in a “classic rug pull.”
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