A notorious group known for engaging in deceitful practices within the blockchain industry is now targeting the Blast platform after defrauding platforms like Magnate, Kokomo, and Lendora in the past. To finance their fraudulent activities, the group has recently transferred approximately $1 million in laundered funds.
According to ZachXBT, an expert in tracking blockchain activities, the funds were initially moved from an Ethereum address associated with previous scams to an address on the Polygon network. Subsequently, the assets were converted into Wrapped ETH (wETH) and transferred across various blockchain networks using bridging services like Orbiter and Bungee.
Eventually, the funds were utilized on the Blast platform to acquire LEAP tokens, thereby increasing liquidity and setting up another trap for unsuspecting victims. Additionally, ZachXBT suspects that the same individuals are also behind a project called ZebraLending on the Base platform, which currently has a total value locked (TVL) of approximately $311K.
This group has a history of launching multiple projects that initially attract significant TVL but ultimately disappear with the funds. Their tactics often involve creating fraudulent Know Your Customer (KYC) documents and collaborating with unreliable auditing firms to give an appearance of legitimacy.
The group has targeted a wide range of platforms, including Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche, demonstrating their adaptability and extensive presence in the blockchain industry.
Given the recurring nature of these scams, it is crucial for the blockchain community to remain vigilant. Investors are advised to exercise caution, particularly when dealing with new initiatives on platforms like Blast that involve substantial fund transfers.
To protect their investments, individuals should verify project qualifications, review audit reports, and understand the channels through which funds are being transacted. Furthermore, community members are encouraged to share information and support each other in identifying suspicious activities to prevent further victimization.
In a separate incident, a nonfungible token (NFT) game called Munchables, hosted on Blast, experienced a $62 million exploit on March 26. Munchables acknowledged the breach and stated that they were actively monitoring the exploiter’s actions and attempting to halt the illicit transactions.
Furthermore, after the launch of its mainnet on February 29, Blast saw approximately $400 million in Ether (ETH) being withdrawn from its Ethereum layer-2 network. This unlocked nearly $2.3 billion in staked crypto that was previously locked on the network. Blast reached a total value locked (TVL) of over $2.1 billion shortly before the announcement of its upcoming mainnet launch at the end of this month.
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