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Blockchain Fraud Group Strikes Again, Launches Fresh Scheme on Blast Network

Reports have emerged of a notorious blockchain fraud group initiating a new scheme on the Blast network, marking another chapter in their history of deceptive activities. ZachXBT, a renowned on-chain detective, has uncovered the group’s maneuvers, indicating a significant transfer of approximately $1 million in illicitly obtained funds to Base, fueling their latest scam.

The group, unnamed yet identified by their past exploits, initiated the transfer from an Ethereum address linked to previous fraudulent activities. Through intricate steps involving the Polygon network and various bridging services like Orbiter and Bungee, they converted the assets into wrapped Ether (wETH) and navigated through multiple blockchain networks before settling on the Blast network.

Their target appears to be an address potentially associated with Leaper Finance, a decentralized lending protocol, where they injected a sudden surge of liquidity in an attempt to lure unsuspecting investors. ZachXBT has also drawn connections between this operation and another Base project named ZebraLending, which currently holds a total value locked (TVL) of approximately $311,000. This mirrors the group’s modus operandi of establishing seemingly legitimate projects only to abscond with investors’ funds later.

The group’s history reveals a pattern of exploiting various blockchain platforms, including Avalanche, Ethereum, Arbitrum, and Solana, showcasing their adaptability and extensive reach within the crypto space. ZachXBT highlights their tendency to inflate TVL figures before executing a “rug pull,” absconding with substantial sums of money. Past projects like Solfire Finance on Solana, Lendora Protocol on Scroll, and Magnate Finance on Base serve as grim examples of their fraudulent endeavors, with losses amounting to millions of dollars.

Blast, introduced by Blur founder Tieshun Roquerre as a layer-2 (L2) network, has unfortunately become a hotspot for scams and exploits. Recent incidents, including the rug pull of RiskOnBlast and the token exploit in Super Sushi Samurai, underscore the network’s vulnerability to malicious actors. The exploits in these projects, alongside the $62 million breach in Munchables, have raised concerns about the security and integrity of the Blast ecosystem, despite efforts by developers to address vulnerabilities and enhance protections.

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