Blockchain fraud syndicate strikes once more, introduces a novel plot on the Blast network.
A group notorious for engaging in fraudulent activities related to blockchain technology has reportedly launched a new scam on Blast. According to ZachXBT, an investigator specializing in blockchain analysis, the group has transferred approximately $1 million in illicit funds to Base in order to support their latest scheme. The group initially moved the funds from an Ethereum address that had previously been associated with scams, and eventually transferred them to another address on the Polygon network. The scammers then converted the assets into wrapped Ether (wETH) and moved them across multiple blockchain networks using bridging services like Orbiter and Bungee. Their ultimate goal was to reach the Blast network, where they allegedly funded an address that may belong to Leaper Finance, a decentralized lending protocol. ZachXBT describes these transfers as a sudden increase in liquidity designed to lure unsuspecting individuals.
At the same time, the investigator, who has gained a reputation for exposing various scams in the crypto world, believes that these individuals are likely behind another Base project called ZebraLending, which currently has a total value locked (TVL) of around $311,000. ZachXBT claims that the group has a history of launching projects that attract significant TVL, only to disappear with the funds later on. According to the investigator, the scammers often create fake know-your-customer (KYC) documents and collaborate with dubious security auditing firms in order to appear legitimate.
This group has targeted various platforms including Avalanche, Ethereum, Arbitrum, and Solana, demonstrating their adaptability and widespread presence in the blockchain industry. According to ZachXBT, the scammers typically grow their fraudulent projects to values in the millions before executing a rug pull and absconding with investors’ funds. The investigator cites previous projects such as Solfire Finance on Solana, Lendora Protocol on Scroll, and Magnate Finance on Base as examples of the group’s past activities.
In the case of Magnate Finance, the group allegedly stole over $6.5 million just hours after ZachXBT and other security experts raised concerns about the project. In the Solfire scam, they made off with approximately $3 million.
Blast, a layer-2 (L2) network developed by Blur founder Tieshun Roquerre, has recently been targeted by several scams, exploits, and rug pulls. In February, a project called RiskOnBlast on the platform experienced a rug pull, resulting in a loss of around 500 ETH. In March, just before its gaming launch, the blockchain game Super Sushi Samurai suffered a token exploit. The team confirmed a $4.6 million exploit due to a smart contract bug, which was verified by on-chain security firm CertiK. The Super Sushi team revealed that the exploiter manipulated the game’s smart contract to double token balances and mass-sell into its liquidity pool.
During the same month, another Blast-based non-fungible token (NFT) game called Munchables fell victim to a $62 million exploit. Munchables acknowledged the breach and stated that they were taking steps to track the exploiter’s actions and stop the transactions.
It is important to note that Blast has mistakenly liquidated $26 million in an Aave fork.
