Magnate Finance, a lending protocol built on the new Base layer-2 blockchain, rug pulled within hours of a warning from crypto sleuth zachxbt. Zachxbt had discovered that a wallet address used by Magnate Finance was directly linked to Solfire Finance, a project that rug pulled for almost $5 million in January 2022. He warned his followers in a tweet that the project “will likely exit scam in the near future.“Sure enough, within an hour of zachxbt’s tweet, the project drained $5.2 million from the protocol and deleted its website and Telegram group.According to zachxbt, the project also shared on-chain links to the March 2023 Kokomo Finance rug pull, which saw its perpetrators profit around $4.5 million.

Total loss estimated at $5,268,000.