Blast Platform Used by Fraudulent Group to Launder $1 Million in Cryptocurrency
A notorious group with a history of blockchain fraud is making headlines once again, this time on the Blast platform. According to on-chain detective ZachXBT, the group recently moved around $1 million in laundered money to finance their fraudulent activities.
The money was initially transferred from an Ethereum address linked to previous scams to another address on the Polygon network. It was then converted into Wrapped ETH (wETH) and moved across various blockchain networks using bridging services like Orbiter and Bungee. Ultimately, the funds were used on Blast to invest in LEAP tokens, potentially setting up another scheme to deceive unsuspecting victims.
This group has a track record of launching projects that attract significant Total Value Locked (TVL) before disappearing with the funds. They often manipulate Know Your Customer (KYC) data and collaborate with less reputable auditing firms to create an illusion of legitimacy.
Having targeted platforms like Basis, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche in the past, this group demonstrates their operational versatility and strong presence in the blockchain space.
The prevalence of such scams highlights the importance of vigilance within the blockchain community. Traders are advised to exercise caution, especially when dealing with new projects on platforms like Blast involving large fund transfers. Verifying project credentials, reviewing audit reports, and understanding fund transaction channels are crucial steps individuals can take to protect their investments.
In light of recent exploits, such as the $62 million incident involving the NFT game Munchables on Blast, it is clear that security measures need to be strengthened. With over $400 million in Ether taken from Blast’s layer-2 network and nearly $2.3 billion in staked crypto unlocked, the community must remain vigilant against potential threats.
As Blast approaches its mainnet launch, scheduled for the end of the month, the blockchain community must work together to prevent further victimization and safeguard their investments. Stay informed, stay cautious, and stay safe in the ever-evolving world of blockchain technology.
