Blockchain technology is always getting better and different. They are back with a new plan to hit the Blast network in this new world. This group has been in the past for scams. Reports say this group, whose name has not been made public, has started a new scam that investors and blockchain watchdogs are worried about.
ZachXBT is a famous on-chain spy known for finding illegal activities in cryptocurrencies. He says the group is planning a smart move involving laundering about $1 million. News sources say these funds were sent to Base, a website they used to start their most recent scam.
The complicated series of events began with the transfer of funds from an Ethereum (ETH) address linked to scams the group had previously run. The money was sent through multiple blockchain networks until it reached an address on the Polygon network.
Blockchain Scammers’ Trail Leads to Blast Network and Leaper Finance
The people they say are crooks did something smart: they wrapped the assets in Ether (wETH) and used services like Orbiter and Bungee to move between blockchain networks. Ultimately, their path led them to the Blast network, where they are said to have sent funds to an address that may have been linked to Leaper Finance, a decentralized lending protocol.
ZachXBT has said that these trades are a sudden rise in liquidity meant to trick people into their scheme. The detective has also found possible links between this group and a different Base project called ZebraLending, which has a total value locked (TVL) of around $311,000.
As it turns out, this group has a long history of fraud in the blockchain space. Most of the time, they start projects that get a lot of press from TVL and then steal investors’ money without telling them. This group has previously worked on projects like Magnate Finance on Base, Solfire Finance on Solana, and Lendora Protocol on Scroll.
These days, the Blast network has been hit with many scams, hacks, and “rug pulls.” Blur’s founder, Tieshun Roquerre, set it up. That month, an attack cost the RiskOnBlast project, which was on the site, about 500 ETH.
In March, a token hack occurred just before the start of Super Sushi Samurai, a native blockchain game on Blast. CrediK, an on-chain security company, revealed that the attack, caused by a bug in a smart contract, cost $4.6 million.
Another example is the non-fungible token (NFT) game Munchables, which was stolen in March and lost about $62 million. When the Munchables team learned about the breach, they set out to find the attacker and prevent further damage.
Authorities and blockchain security experts are still trying to figure out how to stop fraudsters from using new methods. Investors are being warned to research when deciding about blockchain investments.
