Coinbase Layer 2 BASE battles yet another rugpull after BALD, SwirlLend exploited by attackers

  • DeFi lending platform SwirlLend on BASE has been rugged and the total volume of assets locked dropped from $784,300 to $49,200. 
  • The protocol’s deployer bridged Ethereum and USDC from BASE to the ETH blockchain. 
  • Coinbase’s Layer 2 scaling solution-based LeetSwap DEX and BALD meme coin were recently exploited by the project’s deployer.

Coinbase’s Layer 2 BASE recently made headlines for its mainnet launch and rollout. Interestingly, the project suffered a rugpull before its launch, when meme coin BALD was exploited by its deployer through a DEX based on BASE called LeetSwap. 

While LeetSwap managed a partial recovery of its funds, users who bridged their assets to the BALD liquidity pool lost their holdings. BASE is now faced with yet another rugpull. SwirlLend, a DeFi lending protocol, has also been rugged, as reported by blockchain security experts at PeckShield.

Also read: BALD rug pull wipes out 90% of value, hitting Base DEX LeetSwap: A timeline of events

Coinbase Layer 2 BASE-based DeFi protocol suffers rugpull

Coinbase Layer 2 BASE has amassed $167.74 million in total value of assets locked on its chain. While BASE continues to gain popularity among market participants, a DeFi lending protocol on the Layer 2 chain suffered a rugpull earlier today.

A rugpull is an exploit in which a developer or deployer of the project suddenly shuts down and leaves victims or investors scrambling while they bridge assets locked in the project. A recent instance of a rugpull on BASE was the LeetSwap-based liquidity pool for BALD, a meme coin that amassed nearly $100 million in market capitalization within 48 hours of its launch.

PeckShield, a blockchain security firm, identified the exploit and reported that the total value of assets locked in SwirlLend has dropped from $784,300 to $49,200. 

TVL decline on SwirlLend

TVL decline on SwirlLend

Moreover, the deployer has bridged nearly $289,500 worth of Ether and USDC tokens from Coinbase’s BASE to the Ethereum blockchain. 

SwirlLend rugpull as reported by PeckShield

SwirlLend rugpull as reported by PeckShield

The deployer pulled 140.68 ETH and 32,600 USDC tokens. Another 92 Ether is held on the BASE chain.

Investors are left with no resort to retrieve lost funds as the deployer erased the social media platform of SwirlLend. Swirlend wasn't immediately available to respond to requests for comment.

The project originally had an account on X, formerly Twitter. The deployer has deleted the project’s accounts on X, Telegram, Discord, GitHub and taken down the website, with no means left to contact the exploiter.

Cryptocurrency prices FAQs

How do new token launches or listings affect cryptocurrency prices?

Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.

How do hacks affect cryptocurrency prices?

A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.

How do macroeconomic releases and events affect cryptocurrency prices?

Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.

How do major crypto upgrades like halvings, hard forks affect cryptocurrency prices?

Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.

Like this article? Help us with some feedback by answering this survey:

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Why is Pepe meme coin rallying? What’s next after PEPE’s ATH? Premium

Why is Pepe meme coin rallying? What’s next after PEPE’s ATH?

Pepe (PEPE) price shows signs of continuing its uptrend, but it might come after a correction. This short-term pullback could be used by sidelined buyers to accumulate PEPE for the next leg up.

More Pepe News

Grayscale launches new investment vehicles for NEAR and STX

Grayscale launches new investment vehicles for NEAR and STX

Grayscale announced the creation and launch of Near Protocol (NEAR) and Bitcoin Layer 2 Stacks (STX) single asset trusts. The company stated that the launch is an attempt to satisfy increased investors' demands for diversified crypto-asset exposure.

More Cryptocurrencies News

Ethereum on the brink of 75% rally as SEC approves ETH ETFs

Ethereum on the brink of 75% rally as SEC approves ETH ETFs

Ethereum (ETH) bounced back after a brief dip on Thursday as the Securities & Exchange Commission (SEC) approved spot ETH ETFs in a shocking U-turn. US lawmakers had earlier penned a letter to Chair Gary Gensler, urging him to approve the ETFs.

More Ethereum News

XRP set for rally after Coinbase listing in New York

XRP set for rally after Coinbase listing in New York

Coinbase's Chief Legal Officer announced the listing of XRP for its New York clients. XRP was initially removed from the exchange in January 2021 due to an SEC lawsuit on claims of the asset breaking securities regulation.

More Ripple News

Bitcoin: Is BTC out of the woods? Premium

Bitcoin: Is BTC out of the woods?

Bitcoin price shows signs of continuing its uptrend, providing a buying opportunity between $64,580 to $63,095. On-chain metrics forecast a bullish outlook for BTC ahead. If BTC clears $70,000, the chances of resuming the uptrend would skyrocket.

Read full analysis