{"id":583805,"date":"2023-08-25T11:19:21","date_gmt":"2023-08-25T10:19:21","guid":{"rendered":"https:\/\/en.ethereumworldnews.com\/?p=583805"},"modified":"2023-08-25T11:19:29","modified_gmt":"2023-08-25T10:19:29","slug":"magnate-finance-rugs-millions-base","status":"publish","type":"post","link":"https:\/\/en.ethereumworldnews.com\/magnate-finance-rugs-millions-base\/","title":{"rendered":"Magnate Finance Rugs $6.4 Million From Base Users"},"content":{"rendered":"\n<ul><li>On-chain sleuth ZachXBT warned that the Magnate Finance team could disappear with $6.4 million in total value locked (TVL). <\/li><li>The team scrubbed their digital presence a few hours later in an apparent rug pull, Peckshield reported. <\/li><li>Zach noted that MagnateFi is linked to Solfire&#8217;s $4.8 million exit scam, another rug pull from earlier in January. <\/li><li>MagnateFi is the latest DeFi scam to occur on Coinbase&#8217;s burgeoning L2 network Base.<\/li><\/ul>\n\n\n\n<p>The team behind Magnate Finance <a href=\"https:\/\/twitter.com\/zachxbt\/status\/1694914871165345997?s=20\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/twitter.com\/zachxbt\/status\/1694914871165345997?s=20\" rel=\"noreferrer noopener nofollow\">pulled<\/a> off an exit scam, rugging users of millions in crypto previously locked on the platform.<\/p>\n\n\n\n<p>Blockchain security provider Peckshield said the team stole funds by manipulating a price oracle. Magnate&#8217;s TVL stood at $6.4 million before the rug pull, DeFiLlama data showed. The compromised price oracle allows the scammer to steal all user deposits.<\/p>\n\n\n\n<p>Magnate Finance launched as a decentralized finance lender on Base, the first blockchain released by an American publicly traded company. <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">\ud83d\udea8\ud83d\udea8\ud83d\udea8The <a href=\"https:\/\/twitter.com\/MagnateFi?ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">@MagnateFi<\/a> just performed a rugpull  (w\/ ~$6.5m loss) by directly manipulating the price oracle. <br><br>Here is the related hack tx:  <a href=\"https:\/\/t.co\/vjFFSNY27W\" rel=\"nofollow\">https:\/\/t.co\/vjFFSNY27W<\/a> <a href=\"https:\/\/t.co\/APJjRZAsCK\" rel=\"nofollow\">https:\/\/t.co\/APJjRZAsCK<\/a> <a href=\"https:\/\/t.co\/CHhxGqul83\" rel=\"nofollow\">pic.twitter.com\/CHhxGqul83<\/a><\/p>&mdash; PeckShield Inc. (@peckshield) <a href=\"https:\/\/twitter.com\/peckshield\/status\/1694947367030800601?ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">August 25, 2023<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<h2>Magnate Finance Users Warned In Advance<\/h2>\n\n\n\n<p><a href=\"https:\/\/en.ethereumworldnews.com\/coinbase-decentralized-l2-network-base\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/en.ethereumworldnews.com\/coinbase-decentralized-l2-network-base\/\" rel=\"noreferrer noopener\">Base<\/a> users of the DeFi lending service MagnateFi were alerted to a possible exit scam early on Friday by on-chain Sleuth ZachXBT. The blockchain Sherlock pointed to links between Magnate&#8217;s deployer address and another exit scam from January 2023, Solfire. Per reports,  Solfire users lost at least $4 million in crypto. <\/p>\n\n\n\n<p>At the time of writing, the team has scrubbed their digital presence from social media networks like X (formerly Twitter) and Telegram. The Magnate Finance website is also unavailable. <\/p>\n\n\n\n<p>Not long after Zach again warned users of the exit scam, the team responded in Bizzare fashion. As tweeted by the on-chain sleuth, the team changed their X bio to &#8220;contract breached by Zach&#8221;. The exit scammer also replied to Zach&#8217;s thread with &#8220;We stick to the plan? 50-50?&#8221;. <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Update: They replied to this thread and changed their bio <a href=\"https:\/\/t.co\/mY6XPV5Ucg\" rel=\"nofollow\">pic.twitter.com\/mY6XPV5Ucg<\/a><\/p>&mdash; ZachXBT (@zachxbt) <a href=\"https:\/\/twitter.com\/zachxbt\/status\/1694937355122045095?ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">August 25, 2023<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The X account was subsequently deactivated and the team has made no public contact since then. Magnate Finance is the latest rug pull &#8211; the term assigned to crypto projects that steal user assets and disappear &#8211; to happen on Base and the broader DeFi ecosystem. <\/p>\n\n\n\n<p>Base also suffered nearly half a million dollars after SwirLend vanished with user funds earlier in August. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>On-chain sleuth ZachXBT warned that the Magnate Finance team could disappear with $6.4 million in total value locked (TVL). The team scrubbed their digital presence a few hours later in an apparent rug pull, Peckshield reported. Zach noted that MagnateFi is linked to Solfire&#8217;s $4.8 million exit scam, another rug pull from earlier in January. MagnateFi is the latest DeFi scam to occur on Coinbase&#8217;s burgeoning L2 network Base. The team behind Magnate Finance pulled off an exit scam, rugging [&hellip;]<\/p>\n","protected":false},"author":55,"featured_media":579262,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[108120,2],"tags":[108895,108495,109064,108404],"_links":{"self":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/583805"}],"collection":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/comments?post=583805"}],"version-history":[{"count":2,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/583805\/revisions"}],"predecessor-version":[{"id":583809,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/583805\/revisions\/583809"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media\/579262"}],"wp:attachment":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media?parent=583805"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/categories?post=583805"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/tags?post=583805"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}