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StableMagnet

Rug Pull

DeFi · born 2021 · ✝ 2021

A BSC stablecoin swap that drained contracts and wallets alike.

StableMagnet was a stablecoin swap protocol on BNB Chain that hid malicious code in an unverified library contract. In 2021 the operators used it to drain both the protocol's contracts and user wallets for roughly $27M.

Peak
~$27M stolen
Cause
Rug Pull
Year of death
2021

☠️ Cause of death

Hidden malicious code in an unverified library contract let the team siphon funds directly from the protocol and approving users.

📓 Lessons left behind

  • Unverified library contracts are a hiding place for backdoors.
  • Token approvals can drain wallets, not just pools.
  • Trust only fully verified, open source.

🌱 The idea that survived

Source verification

Reinforced demanding fully verified, open contract code before granting any approvals.

#rug#bsc#backdoor#approvals