Verify a decision

{"actor":"system:backfill","investigation_id":"1f542d4b-8778-4bc4-a0f7-ffe3ea7f357c","kind":"publish","page_slug":"magnate-finance","published_at":"2026-05-19T02:32:56.645Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Magnate Finance","sections":[{"content":"","heading":"","severity":"medium","sources":[]},{"content":"","heading":"","severity":"medium","sources":[]},{"content":"","heading":"","severity":"medium","sources":[]},{"content":"","heading":"","severity":"medium","sources":[]},{"content":"","heading":"","severity":"medium","sources":[]},{"content":"","heading":"","severity":"medium","sources":[]}],"sources_used":[],"summary":"Magnate Finance was a DeFi lending and borrowing protocol deployed on Coinbase's Base Layer 2 network that executed an exit scam on August 25, 2023, stealing approximately $6.4–6.5 million in user funds by manipulating its price oracle. On-chain investigator ZachXBT issued a public warning hours before the rug pull, having traced the deployer address to at least two prior exit scams: Solfire ($4.8M, January 2022) and Kokomo Finance ($5.5M, March 2023), establishing this as the work of a repeat-offender scam ring responsible for over $16.7 million in total losses.","timeline":[{"date":"2022-01-23","event":"Solfire DeFi protocol exit scams users for $4.8 million. Deployer address later linked to Magnate Finance.","source":"","source_url":"https://coingape.com/magnate-finance-deployer-exploited-17-mln-from-multiple-rug-pulls/"},{"date":"2023-03-27","event":"Kokomo Finance, a Compound V2 fork on Optimism, rug pulls users for approximately $5.5 million. Same deployer address identified.","source":"","source_url":"https://coingape.com/magnate-finance-deployer-exploited-17-mln-from-multiple-rug-pulls/"},{"date":"2023-08-09","event":"Coinbase's Base Layer 2 network launches publicly. Magnate Finance begins attracting TVL shortly thereafter.","source":"","source_url":"https://coinedition.com/lending-protocol-magnate-finance-rug-pulls-exits-with-6-5-million/"},{"date":"2023-08-25","event":"ZachXBT issues public community alert on X: 'Magnate Finance on Base will likely exit scam in the near future currently with over $6.4M TVL. The deployers address is directly linked to the Solfire $4.8M exit scam.'","source":"","source_url":"https://x.com/zachxbt/status/1694914871165345997"},{"date":"2023-08-25","event":"Magnate Finance executes exit scam: oracle address manipulated, ~$6.4–6.5 million in user funds drained. Website goes offline, Telegram deleted, X accounts deactivated.","source":"","source_url":"https://www.theblock.co/post/247375/magnate-finance-rug"},{"date":"2023-08-25","event":"Scammers transfer $1.34 million DAI to a new address and bridge $1 million USDT to BNB Smart Chain via Stargate. Funds also routed to Arbitrum and Optimism.","source":"","source_url":"https://blockchainreporter.net/base-blockchains-magnate-finance-rug-pulled-users-for-6-4m-bridged-1m-usdt-to-the-bnb-chain/"},{"date":"2024-04-14","event":"ZachXBT exposes Leaper Finance on Blast as a new project seeded with approximately $1 million in laundered funds from prior Magnate Finance and related scams. Leaper Finance and Glori Finance accounts deactivated following exposure.","source":"","source_url":"https://www.binance.com/en/square/post/2024-04-14-scam-team-launches-new-project-on-blast-after-stealing-millions-6743766601282"}]},"v":1}