Blockchain Fraud Team Moves $1M to Blast for New Plans

Blockchain Fraud Team Moves $1M To Blast For New Plans


A group with a history of blockchain scams on platforms like Magnate, Kokomo and Lendora is launching new plans on Blast. They recently misappropriated nearly $1 million in funds to fund their fraudulent activities.

According to chain investigator ZachXBT, the funds were initially moved from an Ethereum address linked to previous scams to another address on the Polygon network. Later, the assets were converted to Wrapped ETH (wETH) and moved across multiple blockchain networks by bridging services such as Orbiter and Bungee.

Eventually, they were used on the breakout platform to purchase LEAP tokens for unsuspecting victims in what appeared to be another setup. At the same time, ZachXBT suggests that these same individuals may be responsible for an ongoing project called ZebraLending on the Base platform, which currently has a total value locked (TVL) of around $311K.

Source: Zachxbt

This group has a history of launching several projects that attract significant TVL but later flee the fund. Their strategies often involve creating Know Your Customer (KYC) documents and partnering with several reputable auditing firms to simulate legitimacy.

Minergate

This group has targeted various platforms, including Base, Solana, Scroll, Optimism, Arbitrum, Ethereum and Avalanche, demonstrating their operational flexibility and presence in the blockchain sphere.

Related: Base Reaches $4B TVL Monthly txs Over Ethereum & Arbitrum

The frequent occurrence of these ripoffs creates a need for vigilance in the blockchain community. Investors are encouraged to exercise extreme caution, especially with new initiatives involving large transactions on platforms such as Blast.

Verifying project efficiencies, examining audit practices, and understanding cash flows are critical steps people can take to protect their investments. Additionally, local community clients are motivated to share information and guide each other in determining suspicious measures to prevent further victims.

Munchables, an invincible token (NFT) game built on Explosives, hit $62 million in exploits on March 26.

About $400 million in Ether (ETH) was taken from the Ethereum Layer-2 network explosion after it launched its mainnet on February 29, with about $2.3 billion locked up on the network. The explosion has crossed $2.1 billion in total value locked (TVL) just days before the newly announced mainnet launch – scheduled for later this month.

Magazine: NFT Collector, DCinvestor: Is this the best NFT collection in the world?

Leave a Reply

Pin It on Pinterest