Beware of Fraudulent Group Launching Schemes on Blast and Other Platforms
A notorious group known for their history of blockchain fraud has resurfaced on the Blast platform, moving around $1 million in laundered funds to finance their latest fraudulent activities. According to on-chain detective ZachXBT, the funds were initially transferred from an Ethereum address linked to previous scams to an address on the Polygon network. The assets were then converted into Wrapped ETH (wETH) and moved across multiple blockchain networks using bridging services like Orbiter and Bungee.
The group used the funds on Blast to purchase LEAP tokens, increasing liquidity in what appears to be another setup to lure unsuspecting victims. Additionally, they are believed to be behind an ongoing project called ZebraLending on the Base platform, with a current total value locked (TVL) of around $311K.
This group has a track record of launching projects that attract significant TVL before disappearing with the funds. Their tactics involve fabricating Know Your Customer (KYC) documents and collaborating with less reputable auditing firms to appear legitimate. They have targeted platforms such as Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche, showcasing their operational flexibility and extensive presence in the blockchain sphere.
Investors are urged to exercise caution, especially with new projects on platforms like Blast involving large fund transfers. Verifying project qualifications, examining audit experiences, and understanding fund transaction channels are crucial steps to protect investments. Community members are encouraged to share information and help each other identify suspicious activities to prevent further victimization.
In related news, a nonfungible token (NFT) game called Munchables on Blast experienced a $62 million exploit, while Blast itself saw around $400 million in Ether (ETH) withdrawn from its layer-2 network after the mainnet launch. The platform had crossed $2.1 billion in total value locked (TVL) just days before the mainnet launch.
The repeated incidents of fraud highlight the need for vigilance within the blockchain community and emphasize the importance of due diligence when investing in blockchain projects.
