- Prominent crypto leader, ZachXBT warns of exit scam.
- He connected the wallet of Magnate Finance to a previous scam wallet.
- The entity’s website and socials suspiciously vanished following the warning.
Cryptocurrency community members are raising alarms after a series of events that suggest Magnate Finance might be heading towards an exit scam. This cautionary sentiment was first voiced by ZachXBT, a prominent figure in Web3 security analysis.
In detail, ZachXBT’s post points out a potentially troubling connection between Magnate Finance and the Solfire $4.8 million rugpull, a notorious incident from January 2022. The deployer’s address of Magnate Finance seems to be linked directly to a previous scam. Thus, casting doubt on the integrity of the current project.
Suspiciously, almost immediately after ZachXBT’s tweet, Magnate Finance took swift action by removing its official website and vanishing from social media platforms. This sudden withdrawal from online presence added fuel to the growing concerns.
Meanwhile, the situation escalated further with reports that the deployer account had manipulated the price oracle provider. This alteration allowed the project to remove $5.3 million of liquidity by providing fake collateral, raising suspicions about its intentions.
Prior to the events, Magnate Finance had reached a Total Value Locked (TVL) of $6.4 million, indicating substantial investor interest. However, this promising trajectory was soon followed by a significant decline as exit scam fears intensified.
A staggering amount of funds were drained from the project, including $2 million USDbC, 946 ETH ($1.56 million), $1.3 million DAI, and 247 WETH ($408,000). This depletion of assets added weight to the allegations of fraudulent behavior.
Accordingly, the crypto community expresses gratitude towards ZachXBT for his proactive stance on Web3 security analysis. His timely warning helped alert investors to the potential risks associated with Magnate Finance.
As uncertainty shrouds Magnate Finance, the incident highlights the importance of thorough due diligence and awareness in the crypto space. Investors are reminded to exercise caution, especially in cases where red flags emerge.
The #CertiKSkynetAlert, serving as a watchdog against fraudulent activities, echoes the need for vigilance within the decentralized finance ecosystem.
The situation on Magnate Finance, with liquidity being drained and its website taken down, underscores the inherent risks in the crypto market. As developments unfold, the industry continues to emphasize the necessity of informed decision-making to protect assets and prevent falling victim to potential scams.
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