• Magnate Finance’s native MAG token has dropped by more than 90% over the past day.
• Crypto on-chain sleuth, ZachXBT, alerted the community of a potential scam masquerading as a legitimate lending protocol called Magnate Finance on the Base blockchain.
• The project’s TVL surged to $6.4 million before plummeting to zero and its website is now offline while its Telegram group was deleted.
Magnate Finance’s Scam Revealed
Crypto on-chain sleuth, ZachXBT, recently alerted the community about a potential scam masquerading as a legitimate lending protocol called Magnate Finance on the Base blockchain. Just an hour after his warning, the platform pulled the rug on its users which resulted in its native MAG token dropping by more than 90%.
Links To Two DeFi Exit Scams
The analyst revealed that the deployer’s address is directly linked to two DeFi projects that turned out to be exit scams: Solfire ($4.8 million) and Kokomo Finance ($4 million). In an odd turn of events prior to going offline, Magnate Finance replied saying “We stick to the plan? 50-50?” and even changed their bio to “Contract breached by Zach”.
Oracle Provider Modified
Blockchain security platform PeckShield explained that it appears as though the developer modified the provider of the price oracle and removed all assets from it resulting in its Total Value Locked (TVL) surging up to $6.4 million before plummeting back down to zero. A community contributor for PeckShield also detected that nearly $1 million of these stolen funds were bridged over to BNBChai.
Website & Telegram Group Offline
Following these events, Magnate Finance’s website is now offline while its Telegram group was deleted soon after this incident was brought into light. It seems as though users have been left empty handed with no way of recovering their funds from this malicious project due to their lack of insurance or financial protection mechanisms in place for investors who trusted them with their money.
Conclusion
It appears that another exit scam has taken away user funds overnight without any form of recourse available for them besides learning from what happened here today so they can take extra precautions when investing in projects like these in future