A group notorious for perpetrating blockchain fraud across platforms like Magnate, Kokomo, and Lendora has resurfaced with fresh schemes on Blast. Recent movements of approximately $1 million in laundered funds indicate their intent to finance fraudulent endeavors once again.
According to blockchain investigator ZachXBT, the funds originated from an Ethereum address associated with prior scams before being transferred to an address on the Polygon network. Subsequently, they were converted into Wrapped ETH (wETH) and transferred across various blockchain networks using bridging services like Orbiter and Bungee.
These funds were then utilized on the Blast platform to acquire LEAP tokens, boosting liquidity and setting the stage for potential exploitation of unsuspecting victims. Concurrently, ZachXBT suspects the same individuals are behind an ongoing project named ZebraLending on the Base platform, which currently holds a total value locked (TVL) of approximately $311K.
This group has a track record of launching multiple projects that attract significant TVL, only to abscond with the funds later. Their modus operandi often involves fabricating Know Your Customer (KYC) documents and collaborating with dubious auditing firms to create an illusion of legitimacy.
Having targeted platforms like Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche, this group demonstrates operational flexibility and a pervasive presence in the blockchain ecosystem.
The recurrence of such scams underscores the necessity for heightened vigilance within the blockchain community. Investors are advised to exercise caution, particularly regarding new initiatives on platforms like Blast involving substantial fund transfers.
Performing due diligence by verifying project credentials, scrutinizing audit reports, and understanding the flow of fund transactions are crucial steps to mitigate risks. Additionally, community members are encouraged to share information and support one another in identifying suspicious activities to prevent further victimization.
Furthermore, recent incidents such as the $62 million exploit on the NFT game Munchables, built on Blast, highlight the vulnerabilities within the ecosystem. Blast itself witnessed significant fund movements, with around $400 million in Ether (ETH) withdrawn from its layer-2 network shortly after its mainnet launch on Feb. 29. These events underscore the importance of robust security measures and cautious engagement within the blockchain space.
