Blast

ZachXBT

Base

Security

Polygon

A group notorious for perpetrating blockchain fraud across various platforms has shifted its focus to the Blast platform. Their new scheme is fueled by approximately $1 million in laundered funds.
According to an alert issued by on-chain detective<a href="https://twitter.com/zachxbt/status/1779333168383791411" rel="noopener noreferrer nofollow"> ZachXBT,</a> the group executed a series of transactions involving the movement of funds from an Ethereum address associated with prior scams to a Polygon network address.
Investigation reveals that subsequently the assets were converted into Wrapped ETH (wETH) and transferred across multiple blockchain networks via bridging services such as Orbiter and Bungee. As soon as the funds were stashed in Blast, they were utilized to purchase LEAP tokens. The strategy is to enhance liquidity and set the stage for further fraudulent activities that target unsuspecting victims.
<h2 id="b-group-exploits-vulnerabilities-b">Group Exploits Vulnerabilities</h2>
ZachXBT also suggests that the same individuals may be involved in an ongoing project named ZebraLending on the Base platform, boasting a current total value locked (TVL) of approximately $311K. The group in the past perpetrated blockchain fraud on platforms like Magnate, Kokomo, and Lendora.
The group’s modus operandi involves launching numerous projects that initially attract significant TVL. Ultimately, however, it results in the misappropriation of funds. Their method often involves the fabrication of Know Your Customer (KYC) documents and collaboration with dubious auditing firms to create an illusion of legitimacy.
<h2 id="b-precautionary-measures-for-investors-b">Precautionary Measures for Investors</h2>
Its operations span a range of platforms including Base,<a href="https://thecoinrise.com/us-sec-charges-mango-markets-attacker-for-stealing-116m/" rel="noopener noreferrer nofollow"> Solana</a>, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche. The group demonstrates remarkable operational flexibility and a pervasive presence within the blockchain space.
Experts are urging investors to exercise heightened caution, particularly regarding new initiatives on platforms like Blast involving substantial fund transfers. Some key precautionary measures include verifying project credentials, scrutinizing audit reports, and understanding the pathways of fund transactions to mitigate the risk of investment losses.
<h2 id="b-blast-s-security-challenges-b">Blast’s Security Challenges</h2>
The recent exploit affected a nonfungible token (NFT) game called Munchables, built on Blast. The vulnerability of the platform was exposed with $62 million lost in the exploit on March 26. Munchables has however taken steps to track the exploiter’s movements and mitigate further damage. The hacks on crypto entities such as Munchables caused a<a href="https://thecoinrise.com/crypto-industry-witnessed-a-23-decline-in-losses-due-to-hacks-report/" rel="noopener noreferrer nofollow"> 23% decline in losses</a>.
Additionally, Blast encountered a significant outflow of approximately <a href="https://thecoinrise.com/phishing-scam-adverts-targets-users-of-etherscan/" rel="noopener noreferrer nofollow">$400 million in Ether </a>(ETH) from its layer-2 network shortly after launching its mainnet on Feb. 29. Despite surpassing $2.1 billion in Total Value Locked (TVL) just before the mainnet launch, Blast continues to grapple with security challenges and vulnerabilities in its network.
The post <a href="https://thecoinrise.com/blockchain-fraud-group-funnels-1m-to-target-blast-platform/" rel="noopener noreferrer nofollow">Blockchain Fraud Group Funnels $1M to Target Blast Platform</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Blockchain Fraud Group Funnels $1M to Target Blast Platform

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