Security firm PeckShield described the act as a rug pull — a fraudulent practice involving the taking of user funds.Connect/Create WalletNo wallet? No problem. You can set one up for free. We recommend Torus for first-time users.Magnate Finance, a lending project operating on Ethereum Layer 2 network Base, has seemingly carried out an exit scam — making off with an estimated $6.4 million.— a term used to refer to crypto developers fraudulently running away with user-deposited funds.
The team has effectively cleared out all of its digital presence. Its social media accounts on platforms such as Twitter and Telegram have been deleted, and the official website is currently unreachable.a warning by on-chain analyst ZachXBT earlier today. The sleuth had cautioned that Magnate Finance on Base could likely carry out an exit scam. They arrived at this conclusion after discovering that Magnate Finance's deployer address was directly linked to a previous exit scam involving a project called Solfire, where $4.8 million was defrauded.
August has been a troubling month for Base. This incident marks the second rug pull seen this month. Earlier in August,in an exit scam executed on Base — with some funds also stolen on Linea. © 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.