ZachXBT Unmasks Group Behind Series of Rug Pulls Worth Over $20 Million
Summary:
Renowned cyber investigator ZachXBT warns about a group of scammers using Leaper Finance to carry out a fraud scheme involving millions of stolen funds. The group is believed to be responsible for rug pulls involving Magnate, Kokomo, Solfire, and Lendora and have launched scams on multiple platforms, causing estimated losses of over $20 million. The alleged culprits have resorted to falsifying KYC documents and using low-standard audit firms. Despite the revelation of the scam, the group continues their fraudulent activities.
Renowned cyber sleuth ZachXBT gave a stern caution about swindlers trying to swindle people using illegally gained millions in a fresh fraudulent scheme. In an X (formerly known as Twitter) series, ZachXBT divulged the results of an inquiry into Leaper Finance, a lending protocol powered by Blast. Based on the study, the team is implicated in multiple rug pulls, including Magnate ($6.5 million), Kokomo ($4 million), Solfire ($4.8 million), and Lendora.The group would let the total value locked (TVL) balloon into millions before emptying the funds of users tied to the protocol, while manufacturing false KYC paperwork and relying on low standard audit firms. The fraudsters have reportedly perpetrated scams on Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, Avalanche, and more, ZachXBT added.The same culprits are suspected to have scammed Hash DAO, Glori Finance, and ZebraDAO, with their fraudulent activities amounting to over $20 million in losses. A rug pull refers to when the creators of a blockchain protocol abruptly withdraw all their resources from a communal fund or a project wallet, thereby depleting the investments of other participants. Generally, there is no prior warning, leaving investors stuck with devalued tokens or assets. In their recent fraud attempt, the group supposedly supplied a Leaper Finance address on the Blast network with almost $1 million laundered from earlier scams, establishing more liquidity to attract unsuspecting victims. As soon as the relationship between Leaper Finance and the scams was established, the bandits responded to ZachXBT, poking fun at the investigator while simultaneously announcing a 'token launch'. After these findings were released, Leaper Finance and Glori Finance's X accounts were shut down and the respective websites have also gone offline. According to a research paper by cybersecurity firm Immunefi published on February 29, over $200 million in crypto has vanished due to hacking and rug pulls in the initial two months of 2024, following 32 distinct incidents.
Published At
4/15/2024 12:43:44 AM
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