Exit Scam Leaves SwirlLend Users Stranded

SwirlLend, a lending project operating on the Ethereum Layer 2 networks Base and Linea, appears to have executed an exit scam.

Based on on-chain data, they have made away with approximately $460,000 in user deposits.

A recent analysis conducted by security firm PeckShield reveals the puzzling disappearance of the SwirlLend team.

They managed to siphon off $290,000 in cryptocurrency assets from Base and an additional $170,000 from Linea before transferring these funds to Ethereum.

As this incident unfolded, the value of user deposits on SwirlLend dramatically plummeted from a significant $780,000 to a mere $49.

The digital footprint of SwirlLend has been systematically wiped out.

The project's social media accounts on platforms like Twitter and Telegram have been wiped clean, and access to the official website is now impossible.

Peckshield has classified this as a "rug pull".

What is A Rug Pull?

A "rug pull" in crypto refers to a situation where the people behind a project suddenly disappear after collecting funds from users.

They essentially take the deposited money and vanish, leaving users with losses.

Not the First Time

This unfortunate event marks the second instance of a substantial rug pull occurring on the Base network recently.

A similar incident took place with the Bald memecoin, a cryptocurrency that once boasted an impressive valuation of $85 million.

Unfortunately, the coin's value disintegrated almost completely after an undisclosed developer (who may have had ties with Sam Bankman-Fried) withdrew liquidity from the primary pool.