StableMagnet
A BNB Chain stableswap protocol that rug-pulled ~$27M in June 2021 by deploying a linked library different from its verified source code, letting operators drain the protocol and approved user wallets. A white-hat traced the team to Manchester, UK; arrests followed and most funds were returned.
Also known as: StableMagnet
Summary
StableMagnet was a BNB Chain stableswap protocol that rug-pulled about $27 million on June 23, 2021. The operators hid a backdoor by deploying a linked library that differed from the verified source code — block explorers verified the main contract but not the linked library — which let them drain the protocol and the wallets of users who had approved it. [1][2]
Recovery
An anonymous white-hat traced the team via GitHub and social-media data to Manchester, United Kingdom, and coordinated with police. Arrests followed, about $9 million was seized from a USB device, and remaining members cooperated and returned most of the stolen funds. [2][3]
Bracketed numbers refer to the numbered sources listed below.
Linked scams & cases
Sources (3)
- Explained: The StableMagnet Rugpull (June 2021) — Halborn
- Top 10 Rug Pulls — StableMagnet — Bankless
- Cyber vigilante hunts down DeFi scammers (StableMagnet) — Cointelegraph
See also
- Loci (LOCIcoin)TokensA 2017–2018 ICO for 'LOCIcoin' tied to the InnVenn IP-search platform. The SEC charged Loci and CEO John Wise with fraud for raising $7.6M on false claims about revenue, headcount, and user base; Wise also misused investor funds. Settled with a $7.6M penalty and an officer/director bar.
- Blockchain Terminal (BCT)TokensA 2017–2018 ICO (BCT tokens, ~$30M) for a 'Blockchain Terminal' — a Bloomberg-style crypto trading terminal. The SEC and DOJ said convicted ex-hedge-funder Boaz Manor secretly ran it under a fake identity ('Shaun MacDonald'), using associate Edith Pardo as a front, and lied about the product's adoption.
- Crowd Machine (CMCT)Tokens
This page was last updated on Jun 8, 2026. View revision history.