Another DeFi protocol, Magnate, has possibly carried out an exit scam on Coinbase’s Layer 2 Base with approximately $6.4 million by manipulating the price oracle.
According to PeckShieldAlert, the TVL of Magnate Finance dropped nearly $6.4 million. It claims that developers modified the price of Oracle and removed all assets from the protocol.
The Magnate team has deleted all its digital presence, including its Twitter handle, Telegram account, and chats, and its website is also not accessible.
Earlier today, the on-chain sleuth ZachXBT shared a post alerting the community that Magnate Finance will likely engage in a rugpull scam in the near future, adding that the deployer address is linked to a previous $4.2 million Solfire rug pull.
About an hour later, ZachXBT updated that Magnate’s website is down and its Telegram group chat is deleted. Before deactivating its Twitter profile, the Magante team dramatically changed their bio by writing ‘Contract breached by Zach.’
So far, Base is facing many rug-pull scams with its hype. Previously, SwirlLend also drained $460k from the protocol. The much-talked memecoin, BALD, also executed an exit scam on the newly launched Base.