zkSync Era protocol Kannagi Finance latest crypto rugpull

Kannagi Finance has reportedly rugpulled, with users losses amounting to $2.13 million.
Protocol’s social media channels have been deleted or are unaccessible.
KANA token has nosedived, plunging by 99% after the incident.

Kannagi Finance, a revenue aggregator protocol on zkSync Era, has reportedly rugpulled. Users have suffered major losses, while the price of the native token KANA has nosedived.

The protocol’s official website has allegedly “expired”. Meanwhile, its social media channels, including the official Twitter account are inaccessible. Total value locked (TVL) has plummeted from $2.13 million on Friday to near zero this morning, putting users losses at over $2 million.

TVL plunged to near zero

Kannagi Finance is said to have had its audit on June 6, handled by SolidProof, an audit agency under Germany-based Make Network. However, the protocol’s smart contract code remained closed-source and unverified.

 “The zkSync Era revenue aggregator protocol Kannagi Finance has RugPulled, and its official website have expired. The TVL of Kannagi Finance was $2.13 million yesterday, and the current TVL has almost returned to zero, so the estimated user loss is $2.13m.  The Kannagi Finance contract code is not open source verified,” Wu Blockchain reported earlier Saturday.

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

A statement from SolidProof acknowledges the incident and say they are “thoroughly investigate the situation.” However, they have pointed out that the platform, which has worked with BitMart, PinkSale and UNCX, did not audit the Vault contracts for the reported incident.

“However, as a registered security provider, our top priority is to assist in resolving this issue promptly and transparently,” the statement read.

🚨 Kannagi Finance Statement 🚨

Dear Investors and community,

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.

We understand the severity of…

— SolidProof.io Official (@SolidProof_io) July 29, 2023

Following the incident, Kannagi Finance’s native token KANA plunged 99% to near zero.