BASE DeFi Project Disappears After Rug Pull
BaseBros Fi Vanishes with User Funds
BaseBros Fi, a decentralized finance (DeFi) protocol on the Base blockchain, has disappeared after executing a rug pull. This incident has left many users without their investments. The protocol vanished from the internet on September 13, deleting its official website and social media accounts on X and Telegram. Blockchain security firm Chain Audits revealed that BaseBros used an unaudited smart contract to steal user funds.
Unverified Smart Contract Leads to Rug Pull
Chain Audits had previously audited four out of the five smart contracts used by BaseBros. However, the contract responsible for the rug pull, known as the Vault Contract, was not part of their audit. This unaudited contract contained a backdoor, allowing the project owners to withdraw funds deposited into the “Strategy” contract.
The Impact on Seamless Protocol
Initially, it was suspected that the Seamless protocol was also affected due to similar contract labeling. However, blockchain investigator Cyvers clarified that the bad actor siphoned $130,000 worth of stolen funds through the crypto mixing service Tornado Cash, and Seamless confirmed its protocol and investor funds were safe.
BaseBros’ Social Media and User Community
Before its disappearance, BaseBros had approximately 2,000 followers on X and over 3,300 members on Telegram. The sudden vanishing act has left many in the community shocked and without recourse.
Comparison with Other DeFi Incidents
The BaseBros incident is not isolated. Recently, the DeFi protocol Penpie was hacked, resulting in a $27 million loss. The attacker responsible for Penpie’s hack even received an on-chain appreciation message from the hacker who stole $195 million from Euler Finance. While the Euler Finance hacker returned 90% of the stolen funds for legal immunity, the Penpie hacker has shown no such intention.
Conclusion
The BaseBros rug pull serves as a stark reminder of the risks associated with unaudited and unverified smart contracts in the DeFi space. Users are urged to exercise caution and conduct thorough due diligence before investing in any DeFi projects.
