The decentralized finance (DeFi) protocol SwirlLend’s Total Value Locked (TVL) has dropped nearly to zero after it was claimed the team had conducted a rug pull.
Recently, scammer have turned their attention to Coinbase’s new Layer 2 Base network protocol.
SwirlLend Rug Pull: Team Deletes Social Media and Website
According to PeckShieldAlert, the SwirlLend deployer has rugged the project, dropping the TVL from $784,300 to $49.26. The team deleted its social media presence, and the official website is also down.
The deployer bridged the assets from Base and Linea to Ethereum blockchain. As of writing, the deployer has bridged almost the entire amount to Ethereum, mainly using the Orbiter Finance bridge.
Learn more about rug pulls here.
According to PeckShield, the scammers have already laundered 252.5 Ethereum (ETH), worth over $460,421 via TornadoCash.
Base, a New Home for Scammers?
Since the announcement of Coinbase Base in February, various speculations started among crypto enthusiasts. Even before the mainnet launch, the Layer 2 protocol recorded one million users. After the mainnet launch on Aug. 9, Base’s daily active users crossed 136,000.
As the on-chain activity increased, people started launching meme tokens on Base. Eventually, in late July, scammers executed a rug pull of over $23 million through the BALD meme coin.
Then, Tuesday’s 472 ETH RocketSwap hack was also controversial as some believed it was a rug pull. The RocketSwap team has closed the replies on X (Twitter) posts and two-way communication on Telegram. However, they have been sharing the updates through X (Twitter).
Due to back-to-back rug pull incidents, the community believes that Base is a new home for scammers.
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