- A Peckshield report has indicated that Kannagi Finance has rug pulled, making away with up to $2.13 million in investor funds.
- The platform runs on the zkSync Era, which is in the race for the best Ethereum Layer 2 network.
- The network has deleted its official website, including social media and communication accounts.
zkSync Era revenue aggregator protocol, Kannagi Finance, is the latest rug pull story after the project disappeared in the blue, leaving investors wondering what happened to their investments worth over $2 million.
zkSync Era-based Kannagi Finance rug pulls over $2 million
Investors in the Kannagi Finance project, which runs on the L2 network zkSync Era, suffer the latest crypto crime victims after the yield aggregator vanished in thin air.
#PeckShieldAlert #rugpull @zachxbt has reported that @Kannagi_Zksync on #zkSync has rugged for over ~$1M. @Kannagi_Zksync already deleted its social accounts/groups.
— PeckShieldAlert (@PeckShieldAlert) July 29, 2023
The scammer's address: 0x95ec03b821f164ce55cbb26f23f591a9bd40d6c1 pic.twitter.com/5FdyO94XZs
Kannagi Finance, whose ticker symbol is the KANA, was touted as a decentralized yield aggregator committed to empowering investors to reap compound interest from their cryptocurrency assets further.
The only remaining trace of the project is the number of investors who now cry wolf after losing their investments. Citing one victim in a Twitter post:
I was RUG about 200,000 U, is there a way to get it back?
The Total Value Locked (TVL) of Kannagi Finance was $2.13 million as of July 28, but the current TVL has almost returned to zero, recording a meager $0.17 at the time of writing. This translates to an estimated 100% user loss.
Kannagi Finance TVL
Notably, the Kannagi Finance contract code must be verified open-source, underscoring the need for proper due diligence before investing in cryptocurrency projects.
zkSync Era suffers by association
The rug pull has tarnished the reputation of zkSync Era, threatening its position in the race for the best Ethereum L2 network. As reported, zkSync currently ranks third after Arbitrum (ARB) and Optimism (OP), with a total value bridge of $455,863,420 at the time of writing.
As the L2 wars continue, the loss of confidence resulting from exploits like the case in EraLend and now zkSync Era continues to pose as a detractor. As reported on July 25, zkSync Era lending protocol EraLend exploited for $3.4 million in USDC. The lending protocol has suspended all borrowing operations and advises users against depositing USDC. EraLend is also an Ethereum L2.
Also Read: zkSync Era lending protocol EraLend exploited for $3.4 million in USDC
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.
Recommended Content
Editors’ Picks
Crypto analyst says Bitcoin bottom is very close, another correction in BTC likely
Bitcoin is trading above $67,000 on Sunday after securing support at $65,000. While BTC holds its gains steady, analysts evaluate the price trend of the largest asset by market capitalization and predict a deeper correction in Bitcoin.
AI tokens could really ahead of Nvidia earnings
Amidst other narratives, AI tokens could gather momentum with the upcoming earnings result of NVIDIA next week. The $2.3 trillion company’s stock emerged as a poster child for the crypto AI sector and gains in the stock catalyzed a rally in cryptocurrency tokens.
Whale rotates capital from WIF to TREMP and BONK, Solana meme coins make comeback
Lookonchain identified a large wallet investor who rotated capital from Solana based meme coin Dogwifhat to Doland Tremp and Bonk. The two meme coins have added double-digit value to their prices in the past 24 hours, as seen on CoinGecko.
Crypto political donations surge to $94 million pre election, exceed previous elections by 13%
Crypto industry giants supported political campaigns in the US looking for pro-crypto governance in the US. A Bloomberg report from May 17 shows that crypto donors have spent $94 million in an effort to get pro-crypto regulation in the US.
Bitcoin: Is BTC out of the woods? Premium
Bitcoin (BTC) price action in the past two days has confirmed the resumption of the bull run. However, BTC needs to clear a few key hurdles before investors can go all-in.