A group with a history of blockchain fraud, targeting platforms like Magnate, Kokomo, and Lendora, is now launching new schemes on Blast. They recently moved approximately $1 million in laundered funds to finance their fraudulent activities.
According to blockchain investigator ZachXBT, the funds were transferred from an Ethereum address linked to previous scams to another address on the Polygon network. Subsequently, the assets were converted into Wrapped ETH (wETH) and transferred across multiple blockchain networks via bridging services like Orbiter and Bungee.
The laundered funds were used on the Blast platform to purchase LEAP tokens, increasing liquidity for potential victims. Concurrently, the group may also be involved in another ongoing project called ZebraLending on the Base platform, boasting a current TVL of around $311K.
This group exhibits operational flexibility, targeting platforms like Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche. Their history of fabricating KYC documents and collaborating with less reputable auditing firms highlights their extensive presence in the blockchain sphere.
The repeated occurrence of scams underscores the importance of vigilance within the blockchain community. Investors are urged to exercise caution, particularly with new initiatives on platforms like Blast involving significant fund transfers.
Verifying project qualifications, examining audit experiences, and understanding fund transaction channels are vital steps to safeguard investments. Community members are encouraged to share information and support each other in identifying suspicious activities to prevent further victimization.
A non-fungible token (NFT) game called Munchables, built on Blast, suffered a $62 million exploit on March 26. Blast, after its mainnet launch on Feb. 29, experienced approximately $400 million in Ether (ETH) withdrawn from the Ethereum layer-2 network, unlocking nearly $2.3 billion in staked crypto previously locked up. Blast surpassed $2.1 billion in total value locked (TVL) shortly before its mainnet launch announcement.
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