Magnet Finance rug pulls $6.4m on Base L2
Coinbase’s Base L2 network faces a new setback as Magnate Finance orchestrates a $6.5 million exit scam using price oracle manipulation. On Aug. 25, ZachXBT, an on-chain analyst and crypto expert, sent out a community alert through X (previously known as Twitter) to his 434,000 followers, cautioning them about a potential exit scam by Magnate Finance, a lending protocol operating on BASE. Community Alert: Magnate Finance on Base will likely exit scam in the near future currently with over $6.4M TVL. The deployers address is directly linked to the Solfire $4.8M exit scam. pic.twitter.com/mBDUy3D66j — ZachXBT (@zachxbt) August 25, 2023 Within an hour of the warning, Magnate Finance’s website went offline, and its Telegram group was deleted. The abrupt disappearance led to a loss of $6.5 million, attributed to the deployer’s manipulation of the price oracle. Magnate Finance, which described itself as a novel lending protocol on Coinbase’s BASE chain, ha...