Fraudulent crypto projects that use stolen funds for liquidity are gone.
Three crypto projects have disappeared from the internet after blockchain investigator ZachXBT confirmed their account balances were based on funds stolen from a previous hack.
On April 14, ZachXBT identified a wallet address containing stolen funds that would provide liquidity to three new crypto projects: credit protocol Leaper Finance on Blast (1,800 followers on X), Zebra DAO on Base (3,200 followers) and Glory Finance on Arbitrum (3,200 followers). .
Further research revealed that the wallet was previously used to support the Rogue Pool project and is currently providing liquid funds to multiple projects across multiple blockchains, including Baz, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche.
Shortly after being called on X, the projects' websites and social media accounts were deleted and remain inactive. However, ZachXBT, the scammer who operates Leaper Finance's social media account, has admitted to having a knack for spotting fake projects.
Before you delete the account, say, “Good job! My friends here at Lazarus fear and yet admire you!” When you offer a partnership for a new scam token launch.
According to ZachXBT, the fraudsters in question are responsible for stealing millions of dollars worth of funds from projects such as Magnet Finance, Kokomo Finance, Lendora and Soulfire.
The trend shows that the stolen funds are being used to create scams to exploit or exit fraudulent cryptocurrency projects on unsuspecting investors.
Investors are advised to conduct thorough research on crypto projects before investing, including checking the background of the founders and the team and verifying the legitimacy of the audit report.
Related: New Crypto Scam Drains Users' Wallets Without Transaction Approval
The Ethereum Layer-2 protocol base saw an 18-fold increase in cryptocurrency funds stolen from phishing scams in March compared to January. According to blockchain anti-fraud platform Fraud Sniffer, nearly $3.35 million was stolen from phishing scammers in March alone.
Scam Sniffer told Cointelegraph that he expects more phishing attacks on the base in April as the number of assets and active users on the chain increases.
The rise in Base phishing scams comes on the heels of the recent memecoin craze on the Coinbase-backed chain, which according to L2Beat has helped push Base's total value to over $3.2 billion — a 370% increase so far in 2024.
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