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Coinbase Layer 2 Base Falls Victim to Another Rug Pull

2 mins
Updated by Geraint Price
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In Brief

  • SwirlLend, a DeFi protocol, sees its Total Value Locked (TVL) plummet after a rug pull, with its team deleting all social media presence.
  • According to PeckShield, the scammers have already laundered 252.5 Ethereum (ETH), worth over $460,421 via TornadoCash.
  • Following a series of rug pull incidents, the crypto community is speculating that the Layer 2 protocol Base is becoming a hub for scammers.
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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.

SwirlLend TVL. Source: DefiLlama
SwirlLend TVL. Source: DefiLlama

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.

Scammers move over 252 ETH via TornadoCash
Scammers move over 252 ETH via TornadoCash. Source: PeckShield

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.

Got something to say about the SwirlLend rug pull or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or X (Twitter).

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

Top crypto projects in the US | April 2024

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Harsh Notariya
Harsh Notariya excels in delivering SEO-optimized crypto news under tight deadlines. Previously, as a Growth Marketer at Sporty and a Community Consultant at Totality Corp, he significantly boosted community engagement and followers. Harsh also crafted engaging content for top crypto influencer Shivam Chhuneja, blending meme references for an educational yet fun experience. His versatile skills make him a notable figure in crypto journalism.
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