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

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 generally known as a rug pull. 

PeckShield reported in a submit 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 means of the Twister Money crypto mixer.

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

Associated: Coinbase layer-2 network Base hits 136,000 daily active users

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

Rip-off Alert

Watch out for suspicious actions involving @SwirlLend, a lending/borrowing protocol on Linea and Base.

Background investigation has proven {that a} workforce member impersonated our CSO months in the past, by adopting his Telegram username and profile image. This unethical…

— SolidProof.io Official (@SolidProof_io) August 5, 2023

There could also be extra hassle forward for Base, judging from a weblog submit 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 features to mint limitless numbers of tokens. Additionally, 70 contained hidden transaction charges and 60 wouldn’t enable consumers to resell their tokens.

Scammers have made off with $2 million price of crypto thus far, based on Solidus. That was along with “tender” rug pulls resembling BALD, which Solidus Labs estimated price customers $5.2 million.

Coinbase announced the launch of its Ethereum-based Base in February. It began onboarding developers on July 13 and opened the platform to users on Aug. 9.

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

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