A notorious group known for engaging in blockchain fraud on platforms like Magnate, Kokomo, and Lendora is now targeting the Blast platform. They have recently transferred approximately $1 million in illicit funds to finance their fraudulent activities.
According to blockchain investigator ZachXBT, the funds were initially moved from an Ethereum address associated with previous scams to another address on the Polygon network. Subsequently, the assets were converted into Wrapped ETH (wETH) and transferred across multiple blockchain networks using bridging services such as Orbiter and Bungee.
Eventually, these funds were utilized on the Blast platform to purchase LEAP tokens, thereby increasing liquidity and setting the stage for unsuspecting victims. ZachXBT also suspects that the same individuals are likely responsible for an ongoing project called ZebraLending on the Base platform, which currently has a total value locked (TVL) of approximately $311K.
This group has a track record of launching various projects that attract significant TVL, only to vanish with the funds later on. Their tactics often involve creating fraudulent Know Your Customer (KYC) documents and collaborating with dubious auditing firms to create an appearance of legitimacy.
They have targeted multiple platforms, including Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche, showcasing their adaptability and extensive presence in the blockchain industry.
As a result of these repeated 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 significant fund transfers.
Verifying the qualifications of a project, examining audit reports, and understanding the channels of fund transactions are essential steps that individuals can take to protect their investments. Additionally, 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, which operates on the Blast platform, experienced a $62 million exploit on March 26. Munchables has acknowledged the breach and is actively monitoring the exploiter’s movements in an attempt to halt the transactions.
Furthermore, after the launch of its mainnet on February 29, Blast witnessed approximately $400 million in Ether (ETH) being withdrawn from its Ethereum layer-2 network. This unlocked nearly $2.3 billion worth of staked crypto that was previously locked on the network. Blast has surpassed $2.1 billion in total value locked (TVL), establishing itself as a significant player in the blockchain industry.
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