New Fraudulent Activity Detected on Blast Platform
A notable group, previously linked to blockchain frauds on platforms like Magnate, Kokomo, and Lendora, has surfaced on the Blast platform, initiating new projects. Led by ZachXBT, this group recently transferred about $1 million in laundered funds to Blast for dubious ventures.
The fund transfer was tracked meticulously, starting from an Ethereum address associated with prior scams, then shifted to Polygon network. Subsequently, funds were converted to Wrapped ETH (wETH) and moved across multiple blockchains using bridging services like Orbiter and Bungee. Eventually, the money was utilized on Blast to purchase LEAP tokens, potentially preying on unsuspecting victims.
Community Alert: The group of scammers who stole 8 figs with Magnate, Kokomo, Lendora, Solfire, etc is back with a new project on Blast @Leaperfinance
Last week they funded an address on Blast with ~$1M of laundered funds from the previous rugs and have begun adding liquidity… pic.twitter.com/yqRKvZuuye
— ZachXBT (@zachxbt) April 14, 2024
Concurrently, suspicions arise regarding the group’s involvement in ZebraLending, an active project on the Base platform, with a TVL of approximately $311,000.
This group’s modus operandi includes creating projects with high TVL figures but absconding with the funds. They employ fake KYC documents and collaborate with lesser-known auditing firms for a facade of legitimacy. Platforms targeted encompass Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche, demonstrating their reach across the blockchain space.
The resurgence of such scams underscores the need for heightened vigilance within the blockchain community. Investors are advised to exercise caution, especially with newly launched projects involving substantial fund flows.
READ MORE: Australian Authorties Seize $41 Million in Crypto from Blockchain Mining Companies
Verifying project credentials, scrutinizing audit reports, and understanding transaction channels are imperative for safeguarding investments. Collaborative efforts among community members to detect suspicious activities are crucial in preventing further victimization.
In response, there’s a burgeoning demand for stringent security measures on blockchain platforms. This includes robust KYC processes, audits by reputable firms, and bolstered transaction monitoring systems to combat sophisticated laundering operations.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
