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Magnate Finance Website Goes Offline as Users Fear $6.4 Million Exit Scam
Magnate Finance, which holds $6.4 million in Total Locked Value, has ties with other financial exit scams
Blockchain analyst ZachXBT also warned of a likely exit scam by Mangate Finance given the deployers address is directly linked to the Solfire $4.8M exit scam
The analyst further revealed that Magnate Finance also has on-chain ties with Kokomo Finance exit scam.
Magnate Finance Token Plunges
Magnate Finance’s token (MAG) has plunged nearly 88% in value since the website went offline. The token is down over 90% in the last 24 hours, as per CoinGecko data
After ZachXBT warned on X, formerly Twitter, about the potential exit scam, Finance Magnate replied to him, “We stick to the plan? 50-50?” and changed their X bio to “Contract breached by Zach”
Magnate Finance has now deleted their X account as well
Several users were able to withdraw their funds after Zach warned about the potential exit scam
Another blockchain analyst Peckshield also confirmed that the developer of the lending protocol on Base modified the provider of the price oracle and removed all the assets
Crypto Scams Continue to Plague the Industry
Instances of crypto scams related to Web3 and DeFi platforms have continued to plague the industry for a long time
Earlier, Zach revealed that the financial damage caused by SIM swap attacks alone in the last four months has exceeded $13.3 million
Bridge exploits in the DeFi eco have resulted in the loss of $207 million in the half of this year alone
According to a June 30, 2023 report by web 3.0 security firm, Beosin, the total value of cryptocurrencies lost in exit scams and hacks amounted to $656 million during the first half of 2023.
The continued rise in crypto scams harms the industry in more than one way as it gives away more reasons for regulators to bring down more strict regulations on the entire crypto industry