DEFI

Repeat offender on the run! The team behind Lendora Protocol, RugPull, has made off with over tens of millions of dollars.

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Repeat offender on the run! The team behind Lendora Protocol, RugPull, has made off with over tens of millions of dollars.

In recent times, the market has seen a sudden surge in activity, with numerous RugPulls and hacking incidents coming to light. Leading blockchain expert ZachXBT revealed this morning that Lendora Protocol appears to be the mastermind behind previous RugPull incidents such as Magnate Finance, Solfire, and Kokomo, accumulating ill-gotten gains exceeding $16.2 million.

ZachXBT: Lendora Protocol at Risk

Crypto sleuth ZachXBT tweeted early this morning alleging that the lending protocol Lendora Protocol based on Scroll is at risk of a RugPull, providing multiple pieces of evidence to support the claim.

Lendora Protocol is likely to conduct an exit scam in the future, so it is advised to withdraw your assets from the protocol immediately.

Money Flow Tied to Previous RugPull Events

Firstly, Zach discovered that $83,000 in funds in Lendora team's multi-sig account came from the Kokomo RugPull incident. In March of this year, a lending protocol deployed on Optimism experienced a RugPull, generating profits of nearly $4 million.

Furthermore, multiple users of the protocol were also involved in or participated in scams related to Kokomo and Bass Exchange.

Lastly, similar to the Magnate RugPull incident, the same security firm Vital Block conducted the audit for this protocol. Zach even posted a screenshot indicating that the official Twitter account of the auditing firm has blocked him.

Website Offline, Token Plummets

Shortly after Zach's message was posted, Lendora Protocol shut down its website and Twitter account, and paused its contracts.

Lendora Protocol's official website and Twitter account have been taken offline

According to CoinGecko data, the protocol's token $LORA has dropped by over 30%.

Repeat Offender Profits Millions

Additionally, Zach pointed out that the team may have orchestrated multiple RugPull events, illicitly profiting over $16.2 million.

It is understood that the related scam incidents include Magnate Finance, Solfire, Kokomo Finance, Snowflake Finance, and several other DeFi protocols.