Summary
Kannagi Finance was a decentralized yield aggregation protocol launched on zkSync Era in June 2023. On July 29, 2023, the project's anonymous team executed an exit scam, draining approximately $2.13 million in user funds and reducing TVL from $2.13 million to $0.17. The stolen funds were subsequently laundered through the Tornado Cash crypto mixer, and all project infrastructure — website, Twitter, and GitHub repositories — was deleted.
Connected Entities
2 entities · 1 linked investigationConnected Through
1 shared actor · 1 investigationDistinct actors this investigation shares with others — holders, traders, and named parties. Shared infrastructure (exchanges, pools) is excluded.
- ⌂Kannagi Financeprotocolalso inKannagi Finance·0
Timeline(7 events)
2023-06-06
SolidProof completes audit of Kannagi Finance ERC-20 token contract, finding it to be a standard token with no ownership privileges. No KYC is conducted with the team.
SolidProof Blog Post #582023-06-01
Kannagi Finance launches on zkSync Era as a yield aggregator. The vault contract code is deployed unverified and closed-source.
Halborn Research / crypto.news2023-07-24
TVL in Kannagi Finance pools reaches approximately $2.13–$2.22 million across user deposits.
CoinJournal2023-07-25
EraLend, a separate zkSync Era protocol, is hacked for $3.4 million in a read-only reentrancy exploit.
BeInCrypto2023-07-29
Kannagi Finance team drains approximately $2.13 million in user deposits from the protocol's vault contracts, reducing TVL to $0.17. Website, Twitter account, and GitHub repositories are deleted.
The Block / Web3 Is Going Great2023-07-30
MistTrack identifies 600 ETH (~$1.1 million) transferred from the scammer wallet (0x95ec03b821f164ce55cbb26f23f591a9bd40d6c1) to Tornado Cash for laundering. PeckShield issues a public alert.
Coincu / REKT News / crypto.news2023-07-30
SolidProof publishes a statement clarifying the scope of their audit and stating the fraudster is 'most likely a person in the Chinese region.' No KYC had been completed.
SolidProof Blog Post #58Decision Log
- hash: FQ96q7M6eHawnjquAhvG5XP6EKJNwFRH9p6XNu48Di1q
This investigation is cryptographically anchored to the Solana blockchain and source URLs are archived via the Internet Archive.
model: claude-sonnet-4-6
generated: 5/4/2026, 2:54:39 AM
last updated: 5/28/2026, 3:33:55 PM
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