The deployer associated with Magnate Finance, a project on the Coinbase’s BASE platform, has been linked to a series of rug pulls totaling an estimated $16.7M.
Beosin Alert, a trusted entity in the Web3 space known for its real-time risk alerts, revealed that this deployer was not only behind the recent $6.4M exit scam of Magnate Finance but also had connections to other significant scams, including Solfire’s $4.8M scam on January 23, 2022, and Kokomo Finance’s $5.5M scam on March 27, 2023.
ZachXBT had earlier issued a community alert about Magnate Finance’s potential exit scam. He highlighted that the deployer’s address was directly linked to the Solfire $4.8M exit scam.
As the time progressed, ZachXBT updated the community with the news that Magnate Finance’s website had gone offline and its Telegram group was deleted. He also pointed out on-chain ties linking Magnate Finance to the Kokomo Finance exit scam.
PeckShieldAlert, another vigilant entity in the crypto space, confirmed the exit scam by noting a sharp drop in the Total Value Locked (TVL) of Magnate Finance on #Base by approximately $6.4M. The developer reportedly altered the provider of the price oracle and subsequently removed all assets.
On-chain data further underscores the gravity of the situation, indicating a precipitous drop of over 90% in the price of Magnate Finance’s protocol token MAG, now trading at a meager $0.0008238.
Magnate Finance once claimed to be the pioneering Metaverse-based Lending Protocol operating on Base and Arbitrum. At its essence, the platform has adopted a dynamic interest rate model, aiming to create more capital-efficient risk management pools. This design allows a diverse range of collateral types, including crypto tokens, stablecoins, synthetic assets, NFTs, and even traditional assets like account receivables, invoices, and mortgages, to be utilized safely. The protocol also boasts a reward system built on a meticulously crafted token economy, which they believe facilitates continuous incentive distribution to stimulate demand. Magnate Finance’s future vision includes the capability of their protocol to accept any valuable asset for lending purposes.
These events serve as a stark reminder of the inherent risks in the decentralized finance (DeFi) sector, emphasizing the importance of due diligence and caution for investors.
Image source: Shutterstock
