Kannagi Finance Rug Pulls, $2.13M TVL Lost
The revenue aggregator protocol Kannagi Finance has fallen victim to a rug pull, leaving its investors in despair. The once-promising platform’s official website has vanished, and its TVL (Total Value Locked) has plummeted from $2.13 million to nearly zero, inflicting an estimated user loss of $2.13 million.
Kannagi Finance completed the audit of SolidProof on June 6. SolidProof is an audit agency under the German company Make Network, established in May 2020, and its partners include PinkSale, BitMart, UNCX Network, etc. https://t.co/6t0uljmmjn
— Wu Blockchain (@WuBlockchain) July 29, 2023
Kannagi Finance Collapses
The sudden collapse of Kannagi Finance has sent shockwaves through the crypto community, leaving many questioning the security and transparency of decentralized finance (DeFi) projects. Adding to the concerns, it has come to light that the contract code of Kannagi Finance was never open source verified, raising doubts about the legitimacy of the protocol from the outset.
The news was first brought to public attention by a tweet from user @leol1978, who shared the alarming details of the protocol’s demise. As the news spread, panic and frustration engulfed those who had invested their hard-earned funds into the project, hoping for promising returns. It is worth noting that Kannagi Finance had seemingly taken precautions by subjecting itself to an audit by SolidProof, an audit agency associated with the German company Make Network. SolidProof, known for its work with reputable entities like PinkSale, BitMart, and UNCX Network, had given Kannagi Finance the green light after completing the audit on June 6.
DeFi Transparency Debate
However, the rug pull has now cast a shadow of doubt on the effectiveness of the auditing process, leaving investors to wonder if the assurances provided were worth relying on. As questions continue to mount, the DeFi space faces renewed scrutiny over the need for robust security measures and greater transparency.
Related: Congressman Torres Criticizes SEC’s Handling Of CryptoThe incident serves as a stark reminder to investors in the crypto space to exercise extreme caution and conduct thorough due diligence before investing in any DeFi project. While the promise of high returns can be alluring, the risks can be equally high, as demonstrated by the unfortunate events surrounding Kannagi Finance.
