Kannagi Finance Launches zkSync Era Protocol, Sparks Crypto Rugpull Debate


Reports have emerged that users of Kannagi Finance, a revenue aggregator protocol for zkSync Era, have lost $2.13 million in a rug-pulling incident. The protocol’s website has expired, its social media channels have been deleted or are inaccessible and KANA tokens, the native token of the platform, have plummeted by 99%.

SolidProof, a third-party auditing agency, was responsible for the audit of the protocol. The code of the smart contract remained closed-source and unverified. Wu Blockchain reported earlier on Saturday that the TVL of Kannagi Finance, which was worth $2.13 million yesterday, has dropped to just $1.13 million – meaning users have lost over $2 million.

SolidProof released a statement confirming the incident and stating that it would form a taskforce in collaboration with KyberNetwork to thoroughly investigate the situation. They also stated that, as a registered security provider, their priority is to assist in resolving the issue promptly and transparently.

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

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