Multiple Base #crypto projects lose more than $1M to malicious players in 24hrs

1. SwirlLend rugpulls

#SwirlLend rug pulled over $460,000 on two blockchain networks, including Base, earlier today, according to CertiK.

SwirlLend is a lending platform based on Linea and Base. Data from DeFillama shows that the total value of assets locked on the protocol plunged to less than $50 from a peak of $769,440 recorded on Aug. 15.

SwirlLend’s social media accounts have been deleted, and its website was no longer accessible as of press time.

Blockchain security firm Peckshield reported that SwirlLend’s deployer had bridged $290,000 in cryptos from Base to Ethereum. Additionally, the attacker bridged 94 $ETH  from Linea to Ethereum via Orbiter Finance Bridge.

2. RocketSwap hacked

On Aug. 15, RocketSwap confirmed that it suffered a brute force attack that led to the loss of an undisclosed amount.

Peckshield estimated that the losses were around 471 ETH, equivalent to $865,000, and noted that the hacker bridged the funds from Base to #Ethereum.

“Due to the proxy contract linked to our farm contract, multiple high-risk permissions became vulnerable,” RocketSwap said. “This resulted in the unauthorized transfer of the farm’s assets. Immediate steps were taken to shut down the farm and halt further potential risks.”

The decentralized exchange announced an emergency program to redeploy a new farm contract that will be open-sourced on-chain. It added that it would contact the hacker to return the funds.

3. Base becoming a fertile ground for bad actors

While #DeFi exploits are common occurrences within the crypto space, Base is quickly becoming notorious for projects rug despite its relatively new launch.

BALD #memecoin was one of the first projects on the L2 network and reached an $85 million market cap before it was rugged by its creator. 

Another project, FrensTech, was allegedly rug pulled by the AzFlin, a former employee of Uniswap. AzFlin withdrew 14 ETH in liquidity from the project, bankrupting it.

- **Rug Pull Incident**: #SwirlLend , a project on the #Linea platform, has been involved in a #rugpull incident, as detected by PeckShield. A rug pull refers to a scam where developers abruptly abandon a project after attracting significant investments, leaving investors with losses.

- **Cross-Chain Transfer**: The deployer of SwirlLend is reported to have utilized #Orbiter Finance to facilitate a cross-chain transfer of around 94 #Ethereum from the Linea platform to the Ethereum mainnet. This transfer involves moving assets from one blockchain to another.

- **Ongoing Transactions**: While the cross-chain transfer has taken place on the Ethereum mainnet, there are ongoing transactions involving funds on the Base platform. These transactions suggest that the situation is still developing, and further movement of funds might be occurring.

- **Concerns over Fund Safety**: The incident raises concerns over the security of funds invested in projects like SwirlLend. Rug pulls and fraudulent activities are risks that investors in the cryptocurrency space should be cautious of, as they can lead to significant financial losses.

- **Importance of Due Diligence**: This incident underscores the importance of conducting thorough due diligence and research before investing in any cryptocurrency project. Investors should exercise caution, verify the legitimacy of projects, and be aware of potential risks associated with the platforms they are using.

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