Over $6 million in state ‘rug pull’ funds from Magnate Finance vanished without a trace

It seems that $6.4 million was stolen in an exit fraud by Magnate Finance.

Lending project Magnate Finance, which ran on the Ethereum Layer 2 network Base, seems to have perpetrated an exit fraud, stealing an estimated $6.4 million.

According to security company PeckShield, this was a “rug pull,” an excuse for the fraudulent departure of cryptocurrency developers with user deposits. Magnate Finance was determined to have hacked the lending protocol’s pricing oracle in order to steal all user funds.

The group has completely erased its online footprint. Its official website is down and its social media profiles on Twitter and Telegram have been erased.

Today, on-chain analyst ZachXBT issued a warning about the exit fraud, which led to its discovery. Magnate Finance on Base, the investigator said, was a possible target for an exit fraud. They reached this verdict by tying the deployer address used by Magnate Finance to the theft of $4.8 million from a startup named Solfire in an earlier exit scam.

This month of August has been a difficult one for Base. The second rug pull to occur this month may be attributed to this incident. SwirlLend vanished in early August after pulling an exit scam on Base and, presumably, Linea. The fraud resulted in the loss of $460,000.

Also Read: The Reserve Bank Of Australia Launches A Pilot Program For CBDCs Based On Ethereum