Devastating Exit Scam, Magnate Finance’s $6.5M Loss on Coinbase’s Layer 2 Shakes Crypto Trust, Revealing Ties to Solfire Scam
In a shocking turn of events, the cryptocurrency world is reeling again. Magnate Finance, a once-promising lending protocol on Coinbase’s new Layer 2 network, has executed a devastating exit scam. The repercussions of this deceitful maneuver are profound, resulting in an eye-watering loss of approximately $6.5 million. The ordeal comes from a recent $23 million liquidity drain orchestrated by the Bald deployer, signifying a grim period for the crypto space.
Security platform PeckShield, renowned for its vigilance, has disclosed that the exit scam was masterminded through direct manipulation of the price oracle. This audacious act has sent shockwaves through the industry, not only for the staggering financial toll but for its direct assault on the trust underpinning these decentralized systems.
The consequences have been nothing short of catastrophic. The Total Value Locked (TVL) of Magnate Finance has plummeted from a healthy $6.4 million to a mere pittance, standing at approximately $107,000 at the time of reporting. The fraudster behind this heist demonstrated cunning precision, tampering with the core of the price oracle’s source and draining all assets from the protocol itself.
Unveiling Magnate Finance And Solfire Scam Link
The vigilant on-chain investigator, ZachXBT, was the initial voice to raise concerns, disseminating discoveries within the crypto community on the X platform. However, this unveiling was not an isolated instance. It highlighted a significant correlation between the address of Magnate Finance’s deployer and the notorious $4.8 million Solfire exit scam. These unsettling connections have magnified doubts and stirred unsettling inquiries regarding the actual essence of these events in the crypto sphere.
As panic spread within the crypto realm, Magnate Finance’s official website was hastily yanked offline, while its Twitter and Telegram groups were summarily deleted, erasing digital footprints. More disturbing revelations awaited as ZachXBT continued his investigation, unveiling ties that bind the project to another tarnished endeavor – the Kokomo Finance exit scam. Confidence in Magnate Finance’s integrity has now all but evaporated.
In the turmoil, the project cryptically addressed ZachXBT’s initial revelation, causing confusion and anger within the community. The phrase “Do we follow the plan? 50-50?” generated bewilderment and frustration, driving the community to seek explanations for their pressing inquiries. As the project’s bio was edited to state, “Contract violated by Zach,” speculation has surged, sparking heated discussions about the reasons behind the sudden move and the subsequent actions of the struggling project.
As the crypto landscape continues to weather successive storms, these disheartening incidents underscore the dire need for increased vigilance, stricter security measures, and a renewed emphasis on trust-building within the digital financial realm.