Magnate Finance was included in the list of ponzi and scam crypto projects in 2023.
Magnate is a cryptocurrency lending and borrowing platform with tokenomics for revenue sharing on Layer2 Networks. This crypto project was not very popular in the crypto sector, but it attracted attention on a small level due to its Base Layer-2 network usage.
On August 25, 2023, Crypto security platform Peckshield reported that the Magnate Finance team had removed nearly $6.5 million worth of crypto assets from the platform.
According to Peckshield, it was a “back-pull” scam action. Basically, the Magnate Finance team ran off with clients’ money.
Popular crypto detective ZachXBT traced the transaction links and discovered that a crypto address is linked to a previously similar kind of exit scam crypto project Solfire.
Currently, all social media contact links (accounts such as Telegram and Twitter) have been removed by the Magnate Finance team. Their official website also went offline.
Mag token price action
Mag was the original token of this Defi platform and this token collapsed by almost 90.6% within a few hours of the news.
It is worth noting that Base is a new Ethereum layer-2 scaling network from US-listed crypto exchange Coinbase. The Base team reportedly allows network participants through high KYC procedures, but still bad actors run scams with complete trust in the Base ecosystem.
Nearly ten days ago, a crypto lending protocol SwirlLend vanished with $460K. According to reports, nearly $290,000 was withdrawn from Base and $170,000 from Linea. SwirLend was also based on the Base network.
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