The Magnate Finance team, built on the Coinbase Layer-2 network Base, allegedly implemented a rug-pull scheme of about $6.4 million.
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According to PeckShield experts, the team directly manipulated the price oracle and withdrew all digital assets.
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The project\’s social media accounts on X (formerly Twitter) and Telegram have been deactivated, and the official website is unavailable.
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A few hours before the incident, on-chain researcher ZachXBT warned the community of a possible scam. He found that the Magnate Finance deployment address was linked to exit scams of Solfire and Kokomo Finance.
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ZachXBT\’s findings were confirmed by Beosin specialists. Including the $4.8m and $5.5m recovered in scams with Solfire and Kokomo, respectively, the fraudsters\’ haul totals $16.7m, according to experts.
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The Base team opened access to the mainnet for project developers on July 17. The public launch of the L2 protocol\’s mainnet took place on August 9.
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On August 15, the DeFi liquidity protocol RocketSwap built on Base was attacked for 471 ETH (about $870,000 at the time).
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Earlier, the developers of the L2 network presented a plan to transition to a decentralized model, which among other things envisaged removing a single point of failure and implementing \”fraud proofs\”.