A team that has been involved in past blockchain scams on Magnate, Kokomo, and Lendora is now planning new deceitful ventures on Blast. They have lately transferred approximately $1 million from laundered proceeds to fund these illegal activities.
Based on the investigation of crypto sleuth ZachXBT, the money was originally transferred from an Ethereum account with a shady past to another one on the Polygon network. Subsequently, these assets were transformed into Wrapped Ethereum (wETH) and transported among various blockchains through interoperability protocols such as Orbiter and Bungee.
Over time, those tokens were employed on the Blast system to acquire LEAP tokens, thereby enhancing liquidity in what seems like a potential scam for unsuspecting investors. Meanwhile, ZachXBT points out that it’s likely the same individuals are managing another ongoing project named ZebraLending on the Base platform, which currently boasts a TVL of approximately $311K.
This team is known for initiating multiple initiatives that draw large amounts of TVL, only to disappear with the funds later on. They employ strategies such as creating fake KYC paperwork and partnering with questionable auditing companies to present a veneer of respectability.
This team is active on various blockchain networks such as Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche, demonstrating their adaptability and widespread influence in the decentralized technology sector.
Frequent instances of frauds in the blockchain community call for heightened alertness. It is advisable for investors to be more careful, particularly when dealing with new projects on platforms such as Blast that involve large monetary transactions.
Checking a project’s qualifications, reviewing previous audits, and understanding the methods for handling funds are essential actions individuals can take to protect their investments. Moreover, engaging with other local customers and exchanging information can motivate them to identify and warn each other about suspicious activities, thus preventing further harm.
An NFT game named Munchables, which operates on the Blast platform, experienced a significant security breach on March 26, resulting in a loss of approximately $62 million. Munchables acknowledged the incident and is currently working to trace the culprit’s actions and prevent further transactions.
Approximately $400 million worth of Ether was withdrawn from the Ethereum layer-2 network Blast following its mainnet launch on February 29, making accessible nearly $2.3 billion in previously secured cryptocurrencies on the platform. The network’s total value locked surpassed $2.1 billion only a few days before the scheduled launch at the end of the month.
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2024-04-15 04:13