Magnate Finance in $6.4M Exit Scam Using Manipulated Oracles!

The post Magnate Finance in $6.4M Exit Scam Using Manipulated Oracles! appeared first on Coinpedia Fintech News

Magnate Finance, a decentralized finance (DeFi) platform has reportedly been involved in an exit scam worth $6.4 million by manipulating price oracles for decentralized stablecoin DAI and Ethereum-based wETH. According to blockchain security firm PeckShield, Magnate Finance, which was launched on the Base L2 network in May, orchestrated the scam last weekend. A sudden drop in the price of DAI and wETH caused the scam to activate, resulting in users losing their assets. This demonstrates the vulnerabilities of the DeFi ecosystem, as the consequences of decentralized finance are difficult to predict and can result in significant losses for users.