Decentralized finance platform Magnate Finance abruptly took down its website and Telegram channel today, stoking fears of an exit scam.
Magnate Finance, holding $6.4 million in total value locked, has concerning ties to past DeFi exit scams according to blockchain analysts. Its deployer address links directly to the $4.8M Solfire scam.
Analysts had warned of red flags given Magnate’s connections to known scams. After the warnings, Magnate’s token plunged nearly 90% before the site went dark.
Some users withdrew funds after the warnings, but the developer reportedly removed all assets by modifying the price oracle. Magnate’s social media accounts have now been deleted as well.
Unfortunately, scams remain rampant in crypto and DeFi. SIM swapping theft has exceeded $13 million in recent months, while bridge exploits resulted in over $200 million in losses this year so far.
Exit scams and hacks have extracted $656 million in crypto just in the first half of 2023, per one report.
While the full details around Magnate Finance are still unfolding, its ties to past scams and sudden disappearance are extremely concerning. Preventing these scams is crucial for crypto’s reputational damage.
