A notorious group known for engaging in blockchain fraud activities has resurfaced with a new scam on Blast, as reported by ZachXBT, a prominent on-chain investigator in the cryptocurrency space. The group allegedly transferred around $1 million in illicit funds to Base to kickstart their latest fraudulent scheme.

The scammers initially moved the funds from an Ethereum address associated with previous scams to an address on the Polygon network. They then converted the assets into wrapped Ether (wETH) and utilized bridging services like Orbiter and Bungee to transfer them across multiple blockchain networks before landing on Blast.

On Blast, they purportedly funded an address linked to Leaper Finance, a decentralized lending protocol, in a bid to attract unsuspecting individuals with a sudden surge in liquidity. ZachXBT also hinted that the same group may be behind another Base project called ZebraLending, which currently has a total value locked (TVL) of approximately $311,000.

According to ZachXBT, the scammers have a history of launching projects with high TVL figures only to vanish with investors’ funds later on. They are known to fabricate KYC documents and collaborate with questionable security auditing firms to create an illusion of legitimacy.

This group has targeted various platforms such as Avalanche, Ethereum, Arbitrum, and Solana, showcasing their adaptability and widespread presence in the blockchain ecosystem. Past projects like Solfire Finance on Solana, Lendora Protocol on Scroll, and Magnate Finance on Base are examples of their previous fraudulent activities.

Scams and rug pulls have plagued Blast, a layer-2 network, with recent incidents like the RiskOnBlast rug pull and the Super Sushi Samurai token exploit. The platform has been a target for malicious actors seeking to exploit vulnerabilities and defraud unsuspecting users.

In light of these developments, it is crucial for cryptocurrency enthusiasts to exercise caution when engaging with new projects and to conduct thorough research before investing their hard-earned funds.

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