Ethereum

Blast

Base

ZachXBT

Polygon

A group notorious for perpetrating blockchain fraud across platforms like Magnate, Kokomo, and Lendora has resurfaced with new fraudulent activities on Blast. Recent investigations by on-chain detective ZachXBT<a href="https://twitter.com/zachxbt/status/1779333168383791411" rel="noopener noreferrer nofollow"> reveal</a> that the group has transferred approximately $1 million in laundered funds to fuel their latest schemes.
The laundered funds originated from an Ethereum blockchain address associated with previous scams before being moved to another address on the Polygon network. Subsequently, the assets were converted into wrapped ETH (wETH) and transferred across multiple blockchain networks using bridging services like Orbiter and Bungee.
<h2 id="span-style-font-weight-400-blockchain-fraud-group-lures-victims-span">Blockchain Fraud Group Lures Victims</h2>
These funds were then utilized on the Blast platform to acquire LEAP tokens, presumably to increase liquidity and lure unsuspecting victims. Concurrently, it is suspected that the same individuals are behind another ongoing project named ZebraLending on the Base platform, which currently boasts a total value locked (TVL) of approximately $311K.
This group has a track record of launching projects that attract significant TVL before absconding with the funds. Their deceptive tactics often involve falsifying Know Your Customer (KYC) documents and collaborating with questionable auditing firms to create a facade of legitimacy.
<h3 id="span-style-font-weight-400-heightened-vigilance-within-the-blockchain-space-span">Heightened Vigilance Within the Blockchain Space</h3>
Their<a href="https://thecoinrise.com/nirvana-hack-engineer-sentenced-to-three-years/" rel="noopener noreferrer nofollow"> fraudulent activities span across various</a> blockchain platforms, including Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche, demonstrating their adaptability and extensive presence in the blockchain community.
Given the<a href="https://thecoinrise.com/crypto-industry-witnessed-a-23-decline-in-losses-due-to-hacks-report/" rel="noopener noreferrer nofollow"> recurrent nature of these scams</a>, heightened vigilance within the blockchain community is imperative. Investors are advised to exercise caution, particularly with new initiatives on platforms like Blast involving substantial fund transfers.
<h2 id="span-style-font-weight-400-victims-of-scams-and-hacks-span">Victims of Scams and Hacks</h2>
To safeguard investments, individuals should verify project qualifications, scrutinize audit reports, and understand the flow of fund transactions. Additionally, community members are urged to share information and support each other in identifying suspicious activities to prevent further victimization.
In a related incident, Munchables, a nonfungible token (NFT) game built on Blast, fell victim to a $62 million exploit on March 26. While the<a href="https://thecoinrise.com/north-korean-hackers-behind-33-of-crypto-hacks-in-2023-report/" rel="noopener noreferrer nofollow"> exploit was acknowledged</a>, Munchables assured users that they were monitoring the exploiter’s movements and attempting to mitigate further damage.
Moreover, Blast experienced a significant outflow of approximately $400 million in Ether (ETH) from its layer-2 network shortly after the mainnet launch on Feb. 29. This incident unlocked nearly $2.3 billion in staked crypto previously locked up on the network.&nbsp;
Despite surpassing $2.1 billion in TVL just days before the mainnet launch, Blast now faces scrutiny amid the fraudulent activities plaguing the platform.
The post <a href="https://thecoinrise.com/blockchain-fraud-group-resurfaces-all-you-need-to-know/" rel="noopener noreferrer nofollow">Blockchain Fraud Group Resurfaces, All You Need to Know</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 Resurfaces, All You Need to Know

Table of Contents

TheCoinrise Media

Other articles published on Apr 14, 2024

Bitcoin Stabilizes at $64k While Altcoins Suffer and ETFs Face Sell Pressure

Volume Transaksi XRP Ripple Meroket 156% saat Pasar Ambruk, Ada Apa?

Top Crypto To Invest in for Massive Gains (April Edition)

Germany’s Top Bank Dives into Crypto with Significant Token Release

Spotting the Next Cryptocurrency Champions Early Wins

Ripple proposes new lending protocol for XRP Ledger (XRPL

Join our free newsletter for daily crypto updates!