SwirlLend rugs on Coinbase layer 2 Base following several scam complaints

By: Michael Wilson

SwirlLend rugs on Coinbase layer 2 Base following several scam complaints

August 17, 2023 8:41 AM

Coinbase has stated that it is working on a monitoring tool to alert customers of anomalies like SwirlLand.


Base, Coinbase's new layer 2, has just been up for a week and has already experienced an influx of bad actors. In the most recent occurrence, crypto lender SwirlLend, which was formerly active on Base and Linea, appears to have engaged in an exit fraud, sometimes known as a rug pull. 


PeckShield stated→ on X (previously Twitter) on August 16 that SwirlLend moved approximately $289,500 in cryptocurrencies from Base. It later transferred 94 Ether (ETH) from Linea, connecting the cryptocurrency to Ethereum. It then created a new token and used the Tornado Cash crypto mixer to launder 253.2 ETH.


SwirlLend's social media profiles and website have been deactivated. Its overall value on Base has decreased from $784,300 to $49,200.


The SwirlLend rug pull happened just two days after Base project RocketSwap, a decentralized exchange, suffered a $865,000 hack. Before that, and even before the site was officially launched, the BALD coin lost 85% of its original worth on July 31 when the developer "added/removed 2-sided liquidity and bought."


According to a blog post by crypto trade surveillance provider Solidus Labs, Base may face further difficulty shortly. According to the report→, the organization discovered over 500 fraudulent tokens on Base. Among them were 300 tokens with secret features that allowed them to mint a limitless amount of tokens. In addition, 70 had concealed transaction fees, and 60 prohibited customers from reselling their tokens.

 


According to Solidus, scammers have stolen $2 million in cryptocurrency thus far. This was on top of "soft" rug pulls like BALD, which Solidus Labs projected would cost users $5.2 million.


In February, Coinbase announced the introduction of its Ethereum-based Base. On July 13, it began enrolling developers and on August 9, it launched the platform to users.