Blockchain fraud organization returns with a new plan on the Blast network

According to reports, a group with a history of engaging in blockchain fraud has unveiled a new scheme on Blast.

An on-chain detective named ZachXBT claims that the organization has transferred almost $1 million in money laundering proceeds to Base in order to finance its latest scheme. 

The monies were first moved by the unidentified gang from an Ethereum (ETH) account connected to earlier frauds, and then finally made their way to another address on the Polygon network.

After converting the assets into wrapped Ether (wETH), the suspected scammers transferred them between many blockchain networks by utilizing bridge services like Orbiter and Bungee.

Their approach brought them to the Blast network, where they are said to have paid an address that might have been associated with the decentralized over-collateralized lending system Leaper Finance. 

ZachXBT describes these transfers as an abrupt increase in liquidity intended to lure gullible people.

Simultaneously, the blockchain detective renowned for exposing numerous cryptocurrency scams noted that these same people are probably behind ZebraLending, another Base project with a current total value locked (TVL) of roughly $311,000.

According to ZachXBT, the gang has a history of starting projects that draw significant TVL just to vanish with the money afterwards. The investigation claims that in order to look genuine, the con artists frequently fabricate know-your-customer (KYC) paperwork and work with questionable security auditing companies.

Scammer history

Avalanche (AVAX), Ethereum, Arbitrum (ARB), and Solana (SOL) are among the other platforms that the organization has targeted in an effort to highlight their flexibility and extensive blockchain presence.

ZachXBT claims that con artists typically build their honeypot projects to seven-figure prices before pulling a fast one and taking the money from investors. The blockchain expert cited the group’s earlier efforts as examples, citing Magnate Finance on Base, Lendora Protocol on Scroll, and Solfire Finance on Solana.

The organization purportedly stole over $6.5 million in the Magnate Finance affair, just hours after ZachXBT and other security professionals expressed concern about the project. Their theft in the Solfire fraud was over $3 million.

Blur pioneer Tieshun Roquerre invented the layer-2 (L2) network Blast, but it has since been the target of a number of scams, vulnerabilities, and rug pulls. A project on the site called RiskOnBlast experienced a rug pull in February, which cost them about 500 ETH.

Just prior to its official launch, Super Sushi Samurai, a blockchain game integrated into the network, had a token exploit in March. With the help of on-chain security company CertiK, the team was able to validate an exploit of $4.6 million caused by a smart contract issue.

The Super Sushi team claims that the exploiter doubled token balances and mass-sold into the game’s liquidity pool by manipulating the smart contract.

Munchables, a different Blast-based non-fungible token (NFT) game, saw a $62 million exploit in the same month. Munchables reported that they had detected the breach and were working to identify the exploiter and stop the transactions.

Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

Author: Lalit Mohan

Leave a Reply