Decoding Magnate Finance’s $6.4 Million Rug Pull

Decoding Magnate Finance’s $6.4 Million Rug Pull

Decoding Magnate Finance’s $6.4 Million Rug Pull

Decoding Magnate Finance’s $6.4 Million Rug Pull

Decoding Magnate Finance’s $6.4 Million Rug Pull

Read Time: 2 minutes

Summary

On the 25th of August, Magnate Finance executed an exit scam ( Rug Pull ). The scam was made possible when the developer modified the price oracle address to manipulate the prices directly. The TVL was dropped by around $6.4 Million. 

The deployer is also linked with past rug pulls of – 

  • Solfire’s $4.8 Million on January 23, 2022
  • Kokomo Finance’s $5.5 Million on March 27, 2023

The complete scam happened on BASE chain, an Ethereum L2 built by Coinbase.

Vulnerability Analysis & Impact

On-Chain Details

Deployer Address:  0x4bdac0b6eeda6211f43178899cb73670b1952c40

Mainnet – 0x4bdac0b6eeda6211f43178899cb73670b1952c40

Contract Address:  0x6a8fbf751c92a8c922428c0ffc5a89e709f7e505

Attack Transaction: 0x39555e75d76b294248a434fdfe9640e0cfe3f22bd7fceb675fd4ef4b5e02f719

Exit Scam Steps

  • The scammer first changed the provider through their Multi-Sig Wallet
  • After then, the address of Price Oracle was changed to directly manipulate the price.
  • Then they used cDAI to borrow other tokens and exited the scam.

After the Incident

  • After the hack, they quickly deleted their website and social media accounts, including Twitter, Telegram and Website.
  • The scammer has successfully bridged the stolen funds to different chains. See here.
  • These are the addresses on the BASE chain where the funds are currently residing 

0xa146dffe1c304a8a3de74c460ffe8dc73e5ce6e1

0x0664faf5afecde5958d8b32258e012c3788006a3

Price Impact

The price of MAG tokens dropped by 86% after the incident.

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