In recent disclosures, a well-known group of fraudsters operating within the blockchain domain unveiled intentions to perpetuate their dubious activities on the Blast platform, utilizing approximately $1 million in laundered funds to underwrite their operations.
Unveiling Transactional Maneuvers
As per insights from on-chain analyst ZachXBT, the funds underwent an initial transfer from an Ethereum address linked to prior fraudulent endeavors to an address on the Polygon network. Subsequently, these funds were transmuted into Wrapped ETH (wETH) and dispersed across diverse blockchain networks via bridge services like Orbiter and Bungee.
Exploiting Blast Platform
These funds found their way into acquiring LEAP tokens on the Blast platform, a maneuver that significantly augmented liquidity and hints at a fresh entrapment scheme for unsuspecting investors. ZachXBT further raised suspicions regarding the involvement of the same fraudsters in a venture dubbed ZebraLending on the Base platform, with an estimated valuation of around $311,000.
Chronicling a History of Deception
This syndicate boasts a track record of establishing ventures that allure substantial sums of money, only to vanish with the capital. Their modus operandi often encompasses falsification of KYC documents and collaboration with lesser-known auditing firms to concoct an illusion of legitimacy. Platforms like Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche have all been targeted by their schemes.
Echoing Calls for Heightened Awareness
In light of the recurring nature of these fraudulent activities, the blockchain community is rallying for increased vigilance. Investors are advised to exercise utmost caution with nascent undertakings on platforms like Blast, particularly those involving hefty capital transfers. Conducting due diligence on project credentials, scrutinizing audits, and comprehending fund transaction pathways emerge as imperative measures to safeguard investments. Additionally, fostering an environment where community members exchange information and counsel each other on identifying suspicious conduct is pivotal in thwarting further victimization.
Unveiling a Dismaying Exploit
In a disheartening revelation, it came to light that a non-fungible token (NFT) game named Munchables on the Blast platform fell victim to an exploit, resulting in the pilferage of $62 million on March 26. This incident unfolded shortly after the Ethereum Layer-2 network of Blast, harboring nearly $2.3 billion in cryptocurrency, initiated its mainnet, culminating in the release of approximately $400 million worth of Ethereum (ETH).