SwirlLend’s Exit Scam Depletes $460K from Base and Linea Networks

SwirlLend, a lending protocol that operated on the Ethereum Layer 2 networks Base and Linea, has allegedly engaged in an exit scam, resulting in a disappearance of funds.

Approximately $460,000 worth of user deposits has reportedly been taken, with $290,000 siphoned from Base and $170,000 drained from Linea. The SwirlLend project, which functioned on Ethereum’s Layer 2 platforms Base and Linea, appears to have orchestrated an exit scam, absconding with an estimated $460,000 in user deposits.

Based on analysis conducted by security firm PeckShield, the SwirlLend team managed to withdraw $290,000 in cryptocurrency assets from Base and $170,000 from Linea, before transferring these funds to the Ethereum network.

In the midst of these events, the value of user deposits on SwirlLend plummeted from $780,000 to a mere $49, as reported by DeFiLlama data. The digital presence of SwirlLend has been effectively wiped out; its Twitter and Telegram accounts have been deleted, and its official website is currently inaccessible.

PeckShield has labeled this incident as a “rug pull,” a term used when developers of a cryptocurrency project disappear with funds that users had deposited. This occurrence marks the second notable rug pull incident on the Base network recently, with the Bald memecoin experiencing a similar fate.

Bald, which was once valued at $85 million, saw its worth collapse almost entirely to zero after an undisclosed developer withdrew liquidity from its main pool.



For more visit CryptoNewsBay.com