zkSync Period’s Kannagi Finance rug pulls and steal $2.13m

Crypto.information – Kannagi Finance, a decentralized yield aggregator, has rug pulled with an estimated $2.13 million of investor funds.

In accordance with the blockchain safety firm, Peckshield, Kannagi Finance erased its digital footprint after bolting with greater than $2 million value of buyers’ funds.

Its official web site, together with social media and communication channels, are offline.

A rug pull refers to a type of rip-off the place builders of a cryptocurrency venture unexpectedly pulls liquidity from a pool, resulting in sharp losses.

German blockchain safety agency, SolidProof, audited Kannagi’s good contract. Nevertheless, it has clarified that it didn’t conduct an audit for Vault contracts associated to the rug pull incident.

The corporate has additionally acknowledged that it’s investigating the matter.

Crypto monitoring and compliance platform, MistTrack, additionally claims that 600 (ETH) from the suspected Kannagi rug pull, valued at about $1.1 million, has been despatched to the Twister Money crypto mixer.

Kannagi Finance is a decentralized finance (defi) platform that automates yield farming, permitting crypto buyers to earn passive revenue through good contracts.

It’s constructed on the zkSync Period community, a layer 2 protocol that scales Ethereum with zero-knowledge (ZK) know-how whereas sustaining Ethereum’s safety and decentralization.

In accordance with DeFiLlama, an analytics dashboard that tracks defi platforms, as of July 28, the full worth locked (TVL) in Kannagi Finance was $2.13 million.

Nevertheless, present data present a TVL of a mere $0.17, indicating a close to 100% loss for customers.

Kannagi Finance TVL | Supply: DeFiLlama

This incident is the most recent to have an effect on the zkSync Period community, following the $3.4 million hack of EraLend on July 25. The EraLend exploit was the primary on zkSync Period since its launch in March.

The layer-2 platform is standard. At one level in June, the its TVL surpassed the $500 million mark.

Nevertheless, the community’s status appears to have suffered following the revelation of the suspected rug pull so quickly after the EraLend hack.

On the time of writing, zkSync Period’s TVL stood at $154.59 million, in line with DeFiLlama. The brand new numbers signify a greater than $345 million drop from its all-time excessive degree.

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