Kannagi Finance, a revenue aggregator protocol operating on the zkSync Era, has allegedly conducted a rugpull, leading to significant losses for its users. The native token of the protocol, KANA, has experienced a drastic drop in value following the incident.

The official website of the protocol appears to have “expired,” and its social media channels, including the official Twitter account, are currently inaccessible. The total value locked (TVL) in the protocol has sharply declined from $2.13 million to nearly zero, resulting in user losses exceeding $2 million.

Kannagi Finance had reportedly undergone an audit on June 6, conducted by SolidProof, a Germany-based audit agency under Make Network. However, the protocol’s smart contract code remained closed-source and unverified.

In response to the incident, SolidProof has issued a statement acknowledging the situation and promising to conduct a thorough investigation. However, they noted that the platform, which has worked with BitMart, PinkSale, and UNCX, did not audit the Vault contracts related to the reported incident. They emphasized their commitment to resolving the issue promptly and transparently as a registered security provider.

Following the alleged rugpull, the price of Kannagi Finance’s native token, KANA, has plummeted by 99% to near zero.