500 ETH rug pull claims victim in layer 2 project
RiskOnBlast, a layer 2 project on the Blast network, has fallen victim to a major exploit known as a “rug pull,” resulting in the loss of approximately 500 Ether (ETH).
The incident has shocked the crypto community, particularly because it is the first of its kind within Blast’s layer 2 ecosystem. The situation unfolded when members of the community noticed that RiskOnBlast’s social media presence had suddenly disappeared.
Further analysis revealed that this was a well-planned deception. Crypto reporter Colin Wu pointed out that RiskOnBlast’s official account, X, went dark shortly after the funds were stolen.
Prominent figures in the crypto space, including analysts and investors, have expressed their disappointment, with some questioning the due diligence involved in supporting RiskOnBlast. The project had anonymous founders with no established reputation.
Investors, such as MoonCat2878, have shared their losses and frustrations as users of the Blast network. They have taken to X to shed light on the situation and express their willingness to contribute to fund recovery efforts. MoonCat2878 has pledged to donate 1 ETH to blockchain investigator ZachXBT and has offered $12,500 to assist in recovering the lost funds if they are retrieved.
MoonCat2878 described how they initially saw RiskOnBlast as a promising investment opportunity due to positive signals from reputable accounts and partnerships within the Blast ecosystem. However, changes in the public sale and the subsequent uncapped round raised suspicions. Attempts to seek clarity from the RiskOnBlast team resulted in delayed and unsatisfactory responses, which in hindsight, were red flags that MoonCat2878 regrets not investigating further. The suspicions proved valid when the project resulted in investor losses.
Other Blast users, such as Blokzi.eth, have expressed their disappointment in the platform’s endorsement of RiskOnBlast. They believed in the project’s legitimacy, only to have their trust broken and suffer financial harm.
Blast, a layer 2 solution built for Ethereum, has gained popularity in the crypto space with support from high-profile backers like Paradigm. The platform, co-created by Blur co-founder Tieshun Roquerre (aka Pacman), was praised for its optimistic roll-up technology and its ability to host Ethereum decentralized applications (dapps) without requiring changes to their codebase.
However, the suspected rug pull has raised concerns about the security protocols of the Blast ecosystem. The tech community, including Coinbase’s Andrew Choi, is actively seeking answers to understand how such a breach of trust could occur within a promising blockchain network.
As the aftermath of the rug pull unfolds, the Blast ecosystem faces the challenge of rebuilding the trust of its users and stakeholders. Investigations are ongoing to uncover the details of the incident, while voices in the crypto world are calling for action and rectification.
