- CertiK Alerts reported an exit scam on Magnate Finance.
- The crypto hack alerts platform observed an 89% slippage on the lending protocol.
- 247 WETH, $1.3M DAI, and $2M USDbC were removed from the Magnate Finance liquidity.
CertiK Alerts, a platform that provides information on crypto hacks and scams, has reported an exit scam on Magnate Finance, a DeFi lending and borrowing platform. CertiK Alert posted on Twitter (X) that it has observed an 89% slippage on Magnate Finance. The alerts platform noted that 247 WETH, $1.3m DAI, and $2m USDbC were removed from liquidity, and the project’s website was down.
Per multiple reports, the total value of the heist was about $6.4 million in a rug pull that was executed via direct manipulation of the price oracle. According to PeckShieldAlert, a blockchain security platform, the developer of Magnate Finance modified the price oracle and removed all the assets.
Shortly before the rug pull, a renowned on-chain detective identified as ZachXBT on Twitter alerted the community of the inevitable exit scam. ZachXBT highlighted a link between the deployer’s address of Magnate Finance and Solfire’s $4.8 million exit scam.
It was shortly after ZachXBT’s alert that the Magnate Finance website went offline, and the project’s Telegram account was deleted. The on-chain detective also identified ties between Magnate Finance and the Kokomo exit scam.
Following the rug pull, PeckShieldAlert identified a transfer of about 1.34 million DAI to a particular wallet by the developer. A PeckShieldAlert contributor also detected that the scammer bridged about $1 million of the stolen funds to the BNBChain.
The Magnate Finance rug pull is the second in just a few weeks on the Coinbase layer-two network. Before now, the Bald deployer made away with $23 million in liquidity from the project.
After the Bald heist, a popular member of the crypto community on Twitter alerted that he received funds from an address linked to the Bald deployer. He considered it an invasion of privacy, and the crypto community thinks it could bring them closer to the identity of the scammer.
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