Kannagi Finance

Tornado Cash

Tornado

zkSync

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 <p class="is-style-lead">Kannagi Finance, a decentralized yield aggregator, has rug pulled with an estimated $2.13 million of investor funds.&nbsp;</p> 
 <p>According to the blockchain security company, Peckshield, Kannagi Finance erased its digital footprint after bolting with more than $2 million worth of investors’ funds. </p> 
 <p>Its official website, along with social media and communication channels, are offline.</p> 
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    <p lang="en" dir="ltr">#PeckShieldAlert #rugpull @zachxbt has reported that @Kannagi_Zksync on #zkSync has rugged for over ~$1M. @Kannagi_Zksync already deleted its social accounts/groups.<br>The scammer's address: 0x95ec03b821f164ce55cbb26f23f591a9bd40d6c1 pic.twitter.com/5FdyO94XZs</p>— PeckShieldAlert (@PeckShieldAlert) July 29, 2023 
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 <p>A rug pull refers to a form of scam where developers of a cryptocurrency project unexpectedly <a rel="noopener noreferrer nofollow" title="pulls" href="https://thebittimes.com/tag/pulls.html">pulls</a> liquidity from a pool, leading to sharp losses.</p> 
 <p>German blockchain security firm, SolidProof, audited Kannagi’s smart contract. However, it has clarified that it did not conduct an audit for Vault contracts related to the rug pull incident. </p> 
 <p>The company has also stated that it is investigating the matter.</p> 
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    <p lang="en" dir="ltr"> Kannagi Finance Statement <br><br>Dear Investors and community, <br><br>We would like to address the recent incident involving KannagiFinance. SolidProof has formed a task force in collaboration with @KyberNetwork to thoroughly investigate the situation.<br><br>We understand the severity of…</p>— SolidProof.io Official (@SolidProof_io) July 29, 2023 
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 <p>Crypto tracking and compliance platform, MistTrack, also claims that 600 Ethereum (ETH) from the suspected Kannagi rug pull, valued at about $1.1 million, has been sent to the Tornado Cash crypto mixer. </p> 
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    <p lang="en" dir="ltr">Looks like funds from the Kannagi Rug was just sent to @TornadoCash. <br><br>600 ETH (~$1.13M) was recently to TC, we'll continue to monitoring and provide update on this investigation! https://t.co/W2n8RLAK6H pic.twitter.com/uwh5B1QouH</p>— MistTrack️ (@MistTrack_io) July 30, 2023 
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 <p>Kannagi Finance is a decentralized finance (defi) platform that automates yield farming, allowing crypto investors to earn passive income via smart contracts. </p> 
 <p>It is built on the zkSync Era network, a layer 2 protocol that scales Ethereum with zero-knowledge (ZK) technology while maintaining Ethereum’s security and decentralization.</p> 
 <p>According to DeFiLlama, an analytics dashboard that tracks defi platforms, as of July 28, the total value locked (TVL) in Kannagi Finance was $2.13 million. </p> 
 <p>However, current records show a TVL of a mere $0.17, indicating a near 100% loss for users.</p> 
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  <img decoding="async" loading="lazy" width="1024" height="517" src="https://cdn.thebittimes.com/images/2023/07/30/fbdffc6113119bd3fec4767a4a8019b5.webp" alt="zkSync Era's Kannagi Finance rug pulls and steal $2.13m - 1" class="wp-image-14181766"> 
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    Kannagi Finance TVL | Source: DeFiLlama 
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 <p>This incident is the latest to affect the zkSync Era network, following the $3.4 million hack of EraLend on July 25. The EraLend exploit was the first on zkSync Era since its launch in March. </p> 
 <p>The layer-2 platform is popular. At one point in June, the its TVL surpassed the $500 million mark. </p> 
 <p>However, the network’s reputation seems to have suffered following the revelation of the suspected rug pull so soon after the EraLend hack. </p> 
 <p>At the time of writing, zkSync Era’s TVL stood at $154.59 million, according to DeFiLlama. The new numbers represent a more than $345 million drop from its all-time high level.</p> 
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zkSync Era’s Kannagi Finance rug pulls and steal $2.13m

TheBitTimes

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