Three Crypto Projects Vanish After Investigator Links Liquidity to Stolen Funds
Summary:
Three cryptocurrency projects vanished from the internet shortly after blockchain detective, ZachXBT, linked their liquidity to previously stolen funds. The wallet providing the stolen funds aided illegitimate projects across multiple blockchains. After being exposed, the scam crypto projects deleted their social media accounts and websites. ZachXBT indicated that the same culprits made millions from crypto thefts from various projects. In related news, the Ethereum layer-2 protocol, Base, saw a massive surge in stolen cryptocurrency funds from phishing scams.
Within hours of blockchain sleuth ZachXBT unearthing traces of their liquidity to funds stripped from previous breaches, three cryptocurrency initiatives vanished from the web. ZachXBT pinpointed a wallet address brimming with purloined funds on April 14, which were fuelling three nascent crypto ventures: lending framework Leaper Finance on Blast, Zebra DAO on Base, and Glori Finance on Arbitrum. Delving deeper, it was learned that the wallet had previously been tapped for financing a rip-off scheme and was presently being employed to disburse liquidity finances to a plethora of projects across an array of blockchains including Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche.
Following their exposure on the platform X, the project websites and their social media handles were expunged and remain so. Nonetheless, the originator of the scam who helmed the social media account of Leaper Finance conceded to ZachXBT's prowess to track down bogus projects. The counterfeit crypto projects went on to eliminate their social media channels.
Right before taking their social media offline, they lauded ZachXBT's work by saying, "Good Job! My cohorts at Lazarus hold you in fear yet respect you!” and proposed a partnership for the launch of a deceptive crypto token.
In accordance with ZachXBT, the fraudsters in the frame have pocketed millions in cryptocurrencies from projects including Magnate Finance, Kokomo Finance, Lendora, and Solfire, among others. The pattern hints that the misappropriated funds are being redirected to craft scam-laden crypto projects primed for swindling unsuspecting investors via rug pull or exit frauds.
Investors are urged to meticulously scrutinize crypto projects before pouring in their money. This must include cross-verification of the founders and the team's background and affirmation of the auditing report's authenticity.
In a related development, Base, an Ethereum layer-2 protocol, reported an eighteen times surge in crypto funds swindled from phishing scams in March as compared to January. A sum of approximately $3.35 million was filched by phishing fraudsters on Base in March alone according to Scam Sniffer, a blockchain anti-scam platform.
Scam Sniffer prognosticates a surge in phishing attacks on Base in April owing to the escalating number of assets and active userbase on the chain. This surge in phishing scams on Base transpires amid the ongoing fixation with memecoin on the Coinbase-bolstered chain, which, as per L2Beat, has propelled Base’s overall worth to soar surpassing $3.2 billion. This registers a 370% augmentation in 2024 till now.
Published At
4/15/2024 11:44:11 AM
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