Magnate Finance joined the list of ponzi & scam crypto projects in 2023.
Magnate is a lending & borrowing crypto platform with revenue-sharing tokenomics on Layer2 Networks. This crypto project was not very popular in the crypto sector but grabbed attention at a small level because of Base layer-2 network use.
On 25 Aug 2023, Crypto security platform Peckshield reported that the Magnate Finance team drained nearly $6.5 million worth of crypto assets from the platform.
According to Peckshield, it was a rug-pull scam type action. In short, the Magnate Finance team ran away with customers’ funds.
Popular crypto detective ZachXBT traced the transaction links & found that a crypto address is linked with a past similar kind of exit scam crypto project Solfire.
In the present time, all the social media contact links (accounts like Telegram, and Twitter) have been deleted by the Magnate Finance team. Also, their official website went offline.
Mag token price action
Mag was the native token of this Defi platform and this token collapsed badly by nearly 90.6% within a couple of hours following the news.
It is worth noting that Base is a new Ethereum layer-2 scaling network by the American publicly traded crypto exchange Coinbase. The Base team reportedly allows network participants via high KYC procedures but still bad actors are conducting scams with full confidence in the Base ecosystem.
Nearly 10 days ago, a crypto lending protocol SwirlLend disappeared with $460K. As per reports, nearly $290,000 was drained from Base and $170,000 from Linea. SwirLend was also based on the Base network.
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