SwirlLend rugs on new Coinbase layer 2 Base as large number of scammers reported

Graphics Card Deals

Base, Coinbase’s new layer 2, has been totally operational for every week and has already seen an inflow of dangerous actors. Within the newest incident, crypto lender SwirlLend, previously lively on Base and Linea, has apparently carried out an exit rip-off, in any other case often called a rug pull. 

PeckShield reported in a put up on X (former Twitter) on Aug. 16 that SwirlLend transferred round $289,500 price of cryptocurrency from Base. It later transferred 94 Ether (ETH) from Linea as nicely, bridging the crypto to Ethereum. It then created a brand new token and laundered 253.2 ETH by the Twister Money crypto mixer.

Related articles

SwirlLend has shut down its social media accounts and web site. Its whole worth locked on Base has fallen from $784,300 to $49,200.

Associated: Coinbase layer-2 community Base hits 136,000 day by day lively customers

The SwirlLend rug pull got here two days after Base challenge RocketSwap, a decentralized trade, skilled an $865,000 exploit. Earlier than that — and even earlier than the platform was formally open to the general public — the BALD coin misplaced 85% of its worth on July 31, after the developer “added/eliminated 2 sided liquidity and purchased.”

There could also be extra bother forward for Base, judging from a weblog put up by crypto commerce surveillance service Solidus Labs. The corporate discovered greater than 500 rip-off tokens on Base, it reported. Amongst these had been 300 tokens with hidden capabilities to mint limitless numbers of tokens. Additionally, 70 contained hidden transaction charges and 60 wouldn’t enable consumers to resell their tokens.

The Base ecosystem. Supply: Base

Scammers have made off with $2 million price of crypto to this point, in keeping with Solidus. That was along with “mushy” rug pulls similar to BALD, which Solidus Labs estimated value customers $5.2 million.

Coinbase introduced the launch of its Ethereum-based Base in February. It started onboarding builders on July 13 and opened the platform to customers on Aug. 9.

Coinbase didn’t reply to a Cointelegraph request for remark.

Journal: QuickSwap founder: L2s are the trail to mass adoption