ZachXBT issues potential exit scam alert for Lendora Protocol on Scroll

  crypto.news 15 November 2023 17:00, UTC

Previous rug pull survivor and anonymous blockchain sleuth ZachXBT shared an alert on Nov. 14 of a possible exit scam for Lendora Protocol, a decentralized lending platform on Scroll.

As part of the warning, ZachXBT urges users to withdraw their assets from the protocol immediately.

A look into Lendora

The investigation revealed that approximately $83,000 received by the Lendora Team multisig is linked to the Kokomo exit scam, raising suspicions about the legitimacy of the project. At the same time, other users of the Lendora Protocol were found to have connections to both the Kokomo and Bass Exchange exit scams.

Update: The website is now offline and they paused the contracts pic.twitter.com/uWmsi73C44

— ZachXBT (@zachxbt) November 14, 2023

Furthermore, it has been discovered that the same bottom-tier security firm, Vital Block, was employed for both the Lendora Magnate scam and their previous project, Magnate. This group, responsible for various scams, including Solfire, Hash DAO, Kokomo, Snowflake and more, has accumulated over $16.2 million in total from these illicit activities.

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A follow-up post issued later in the day shows that the website involved in the alleged scam was since taken offline, with all of its related contracts being paused.

Going offline

Sadly, this is not the only exit scam that has been on the crypto community’s radar.

In a report issued on Nov. 1, blockchain analysis firm CertiK disclosed that the crypto market witnessed a loss of over $32.2 million in user funds during October, attributing the incidents to various causes, including vulnerabilities, exit scams, and manipulations involving flash loans.

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