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Magnate Finance Scam Unveiled

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ByMarcel Bich

Sep 20, 2023
Magnate Finance Scam Unveiled
Marcel Bich
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The situation at the brand-new L2 network Base from the digital currency exchange Coinbase is becoming worse. A few weeks later, Magnate Finance made an exit-skim for a further $6.5 million, capping the saga of the under-hyped BALD token with a $23 million rag pool.

Oracle was used to control the prices of DAI and wETH, according to cybersecurity firm PeckShield.

Magnate Finance: Base’s New Villain

At the time of writing, the total value of assets locked in the protocol (TVL) had decreased from around $6.51 million to slightly under $14,000.

Onchain investigator ZachXBT made note of the fact that the platform’s website is no longer accessible and the Telegram group has been removed. According to the analyst, there is a direct connection between the address from where the smart contract was deployed and the illegal withdrawal of $4.8 million from Solfire.

Solfire.Finance was found to have scammed consumers out of more than $3 million in January 2022. The platform removed its social media pages and website when the scam was discovered.

Magnate promoted itself as a platform for borrowing and lending money. A dynamic interest rate model and L2 revenue sharing were allegedly the foundations for its tokenization.

Base Network: Rampant Fraud

Numerous decentralized apps were spawned by Base’s L2 network, whose long-awaited release was finally made possible. The Ethereum network would become more scalable and user-friendly, according to Base. However, the network quickly turned into a haven for con artists searching for quick cash.

Encryption AI stands out among the various initiatives that have been launched. It turned into a tragic illustration of a fraud that cost $2 million.

Even before the blockchain was launched, Solidus Labs found more than 500 counterfeit tokens. Additionally, the investigation showed that roughly 300 of them contained undiscovered smart contract characteristics that permitted endless currency issuance. According to the research, an additional 70 smart contracts concealed the alteration in transaction costs.

Another significant fraud on Base that took place in late July is also described in the report. In honor of Coinbase CEO Brian Armstrong’s clean-shaven head, the cryptocurrency was given the moniker BALD.

With just a day to market its token meme, BALD saw tremendous growth on Twitter. Before riding off into the distance with a respectable $5.2 million, Solidus explains how the BALD token artificially inflated price and volume on the decentralized market LeetSwap.

 
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Marcel Bich

Marcel ‘s passion for the world of cryptocurrencies and his comprehensive knowledge of blockchain technology make him an invaluable asset to our team. He stays updated on the latest trends, regulations, and emerging technologies in the crypto space, ensuring that our audience receives accurate and up-to-date information.