Magnate Finance, a cryptocurrency platform with a Total Value Locked (TVL) of $6.4 million on Base, has come under scrutiny following allegations of an exit scam. On-chain analyst ZachXBT highlighted potential red flags, such as the discovery that Magnate Finance’s deployer address had been directly linked to a $4.8 million rug pull executed by a project named Solfire in January 2022. CertiK Alert noted the abrupt offline transition of Magnate Finance’s website and related social media channels shortly after ZachXB revealed his speculation.CertiK’s detailed findings suggest that deceptive strategies were at play. The deployer account is believed to have altered the price oracle provider, a tactic that presumably enabled the extraction of $5.3 million in liquidity through the use of counterfeit collateral. BaseScan revealed substantial assets missing from Magnate Finance that totaled to its $6.4 million TVL. After being directly linked to this potentially criminal activity, Magnate Finance’s website went dark, and its Telegram group vanished.
| Information |
Details |
| Geography |
Global |
| Countries |
|
| Sentiment |
negative |
| Relevance Score |
10 |
| People |
ZachXBT, CertiK, PeckShield, ZachXB, BaseScan |
| Companies |
Base, PeckShield, CertiK, BaseScan, ZachXBT |
| Currencies |
USDbC, ETH, DAI, WETH, Bitcoin |
| Securities |
None |
