Ethereum Layer 2 Lending Scam: SwirlLend’s Exit Raises DeFi Ecosystem Red Flags

“The Ethereum Layer 2 lending project, SwirlLend, allegedly perpetrated an exit scam, leading to user losses around $460,000. The scam was exposed by cyber-security firm PeckShield, revealing suspicious activities such as the sudden disappearance of SwirlLend’s social media presence. This incident emphasizes the ever-present risk in the DeFi ecosystem and the importance of due diligence.”

Web 3 Dilemma: $1.2 Billion Lost to Hacks and Fraud Amid the Blockchain Revolution

“The digital ecosystem of Web 3 platforms has reported a loss of over $1.2 billion this year due to hacks and rug pulls, states web3 bug bounty establishment, Immunefi. With heavy losses in August 2021, Ethereum witnessed the most manifold of attacks. Hacks clearly outweighed frauds as the root cause of these financial missteps. These financial drains highlight the need for thorough scrutiny of blockchain technology’s defense mechanisms.”