Recurring Scams on Blockchain Platforms Prompt Vigilance: Blast Becomes Latest Target
Summary:
A group notorious for past blockchain scams on various platforms has initiated fresh fraudulent schemes on the platform Blast, recently moving around $1 million to fuel their illicit actions. The same group is also suggested to be behind the ongoing project, ZebraLending, currently holding around $311K in total value locked. With frequent instances of such scams, stakeholders in the blockchain community are urged to be more vigilant. Meanwhile, Munchables, an NFT game on Blast, underwent a $62 million exploit recently, stressing the importance of cautious investment in the blockchain sphere.
Notorious for past blockchain scams on platforms such as Magnate, Kokomo, and Lendora, a group is initiating fresh fraud schemes on the platform, Blast. This group has recently funneled about $1 million in illicit money to fuel their fraudulent actions. As per the information provided by blockchain investigator ZachXBT, this sum was first transferred from an Ethereum address associated with previous frauds to another address on the Polygon network. Following this, the funds were converted to Wrapped ETH (wETH) and shifted through multiple blockchain networks using bridge services like Orbiter and Bungee. These funds were ultimately used on the Blast platform to buy LEAP tokens, increasing liquidity and setting a potential trap for innocent victims. Concurrently, ZachXBT indicates that the same group may be behind another active project, ZebraLending, on the Base platform, which presently holds about $311K in locked value.
The same group has a track record of initiating many projects which lure substantial locked values only to later vanish with the amassed resources. Their modus operandi usually involves faking KYC documents and partnering with less reliable audit firms to appear legitimate.
They have targeted diverse platforms including Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche, demonstrating their ability to adapt and their significant footprint in the blockchain arena.
Given the recurring instances of such scams, stakeholders in the blockchain sphere are urged to be vigilant. Investors, in particular, are advised to be more cautious, especially in relation to new ventures on platforms such as Blast that entail significant fund transfers. Knowing project details, scrutinizing audit reports, and understanding fund transaction pathways are critical steps people can take to protect their investments. In addition, community members are urged to share information and assist each other in spotting dubious activities to prevent further victimization.
Recently, Munchables, a nonfungible token (NFT) game hosted on Blast, experienced a $62 million exploit on 26th of March. Munchables reported that its system was compromised and spoke of efforts being made to trace the exploiter's actions and "halt the transactions."
After Blast, an Ethereum layer-2 network, launched its mainnet on Feb. 29, approximately $400 million worth of Ether (ETH) was drained from the network, freeing nearly $2.3 billion worth of previously staked crypto. A few days before the announcement of its mainnet launch, set for the end of the month, Blast surpassed $2.1 billion in total value locked (TVL).
Published At
4/14/2024 2:05:50 PM
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