Vladislav Sopov
The team behind SwirlLend, a base-centric DeFi protocol, is disappearing with nearly $800,000 in liquidity
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Contents
- SwirlLend DeFi performs a rug pull, withdrawing $800,000 from liquidity pools
- First ceiling crack at Linea?
Coinbase’s highly anticipated L2 platform Base, Ethereum, is experiencing its third “rug pull” attack in about two weeks. It launched on full-fledged mainnet just this month.
SwirlLend DeFi performs a rug pull, withdrawing $800,000 from liquidity pools
As reported by PeckShield Security Audior, the team at decentralized credit and lending protocol SwirlLend performed a rug pull today. In all, over $784,300 in liquidity mysteriously disappeared from the loan pools. Both the Twitter account and the official website of the project will be closed.
The malefactors immediately began withdrawing funds from the SwirlLend protocol. First, they transferred the funds from Ethereum’s L2s to the Ethereum (ETH) mainnet. Subsequently, over $462,000 was laundered through the Tornado Cash (cryptocurrency mixer) obfuscation mechanism.
SwirlLend advertised itself as a powerful “yield farming” machine with impressive APY rates for various Ethereum-based cryptocurrencies. It started growing a month ago. According to the DeFiLlama tracker, his TVL metric skyrocketed last week.
Since August 12, his TVL has nearly tripled.
As previously reported by U.Today, since its inception, the Base blockchain has been the focus of evildoers organizing rug-pull attacks. On July 31, 2023, the BALD meme coin lost all of its liquidity after a surge of 40,000%.
In a very short time, the company lost over $85 million in market capitalization.
First ceiling crack at Linea?
Also, the meme token FrensTech, created by a Uniswap official, was hijacked last Saturday, August 12, 2023. Luckily, the scammer only managed to take 14 WETH from the liquidity pools.
On the same day, the mastermind behind this attack was fired by Uniswap founder Hayden Adams.
However, the SwirlLend carpet pull is unique. Since the dApp ran on both Base and the L2 Linea from Consensys, this is the first exit scam ever for the second network.
The attackers have already bridged 94 ethers from Linea to Ethereum (ETH) via the decentralized bridge ecosystem Orbiter Finance.
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