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.
SwirlLend disappears with $460K in apparent exit scam on Base and Linea https://t.co/AawMSWxkV0
— The Block (@TheBlock__) August 16, 2023
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