SwirlLend, a lending protocol based on Layer 2 networks Base and Linea, has seemingly executed a rug pull, disappearing with an estimated $460,000 in user funds. According to reports, the project developer drained $290,000 from Base and $170,000 from Linea.
This incident is the second significant exit scam executed on the Base network in recent weeks, with a similar occurrence involving the Bald meme coin.
BALD, a meme coin inspired by Brian Armstrong, saw its value plummet from over $85 million to nearly zero after the unidentified developer removed liquidity from its main pool.
SwirlLend Lending Protocol Has Been Rugged, PeckShield Confirms
On Wednesday, August 16, blockchain security firm PeckShield confirmed – via a post on X (formerly Twitter) – that the team behind the SwirlLend protocol executed an exit scam, making away with roughly $290,000 in user deposits on Base.
PeckShield’s on-chain analysis reveals the protocol’s developer bridged about $289,500 worth of Ether and USDC tokens from Base to Ethereum, and the deployer reportedly has about 92ETH of the loot left on Base.
Barely minutes later, PeckShield posted an update, stating that SwirlLend has also been rugged on the Linea chain. According to the security firm, the protocol’s deployer bridged about $170,000 worth of ETH from Linea to the Ethereum network via Orbiter Finance.
The total value locked (TVL) on the SwirlLend protocol has collapsed from nearly $770,000 to a mere $49.21, according to data from DefiLlama.
Source: DefiLlama
As of this writing, SwirlLend’s digital presence appears to have been erased, as its social media platforms on X and Telegram have been deactivated. Meanwhile, the lending protocol’s official website remains inaccessible.
Another Setback For Base?
Base, an Ethereum Layer 2 network built by prominent crypto exchange C
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Author: Opeyemi Sule
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