$6.4 Million Lost In Latest Base-Native DeFi Protocol Rug Pull

Magnate Finance, a DeFi lending protocol on the Ethereum layer-2 network Base, is reported to have conducted a rug pull, robbing its users of $6.4 million worth of assets. This event represents the latest troubling incident on the Base network in merely a month of its official mainnet launch.

3 Rug Pulls, $16.7 Million Lost – Who’s Responsible? 

On Friday, August 25, blockchain security intelligence Peckshield confirmed Magnate Finance’s rug pull, stating that the project developers manipulated the provider of the price oracle, allowing them to withdraw all assets of the platform.

Peckshield also provided more information on the scammers’ movement, stating that they had transferred $1.34 worth of DAI to a new address while also bridging $1 million of the loot to the BNB chain. 

The majority of the stolen funds have been transferred to other Ethereum layer 2 solutions such as Optimism and Arbitrum. Meanwhile, the $1.3 million DAI and an additional 295 ETH, valued at around $486,000, remain on the Base Network.