In a shocking turn of events for the Coinbase community, its newly established Layer 2 network grapples with yet another setback as Magnate Finance, a prominent lending protocol, falls victim to an audacious exit scam. This incident follows closely on the heels of the recent $23 million liquidity heist by the notorious Bald deployer, plunging the network into turmoil.
Magnate Finance’s staggering loss, estimated at around $6.5 million, has left investors reeling. Security platform PeckShield revealed that the exploit was masterminded through direct manipulation of the price oracle, highlighting a critical vulnerability in the network’s security architecture.
The Total Value Locked (TVL) for Magnate Finance has plummeted from a robust $6.4 million to a mere $107,000. The orchestrator of this malicious act employed a cunning maneuver, tampering with the price oracle’s source and swiftly draining all assets from the protocol.
The first to sound the alarm was blockchain sleuth ‘zachxbt’ who brought this alarming incident to the forefront of the cryptocurrency community on the X platform. Notably, the platform uncovered a direct link between the address responsible for deploying Magnate Finance and the infamous $4.8 million exit scam executed by Solfire. This revelation has intensified suspicions about the interconnections between these fraudulent activities.
The situation quickly became more serious when the Magnate Finance website was taken offline shortly after platform revelations. The project’s official Twitter and Telegram groups were mysteriously deleted. The platform also revealed troubling connections between the project and the Kokomo Finance exit scam, raising more doubts about the project’s legitimacy.
Amid the chaos, Magnate Finance issued a perplexing response to the platform’s initial expose. The project cryptically stated, “We stick to the plan? 50-50?” and updated their X bio with the enigmatic phrase “Contract breached by Zach.” This ambiguous retort has ignited fervent speculation within the cryptocurrency community, leaving many pondering the true motives behind the rug pull and the subsequent enigmatic actions undertaken by the beleaguered project.
