In recent disclosures, a notorious group of scammers operating within the blockchain domain revealed their plans to continue their fraudulent activities on the Blast platform, using roughly $1 million in illicitly obtained funds to support their operations.

Exposing Transactional Tactics

According to findings from blockchain analyst ZachXBT, the funds were first moved from an Ethereum address associated with previous fraudulent schemes to an address on the Polygon network. Subsequently, these funds were converted into Wrapped ETH (wETH) and distributed across various blockchain networks using bridge services such as Orbiter and Bungee.

Manipulating Blast Platform

These funds were then used to purchase LEAP tokens on the Blast platform, a move that significantly increased liquidity and indicated a new trap for unsuspecting investors. ZachXBT also expressed concerns about the potential involvement of the same scammers in a project called ZebraLending on the Base platform, which is estimated to be valued at approximately $311,000.

Documenting a History of Fraud

This group has a history of launching projects that attract large sums of money before disappearing with the funds. Their typical approach involves forging KYC documents and collaborating with lesser-known audit firms to create a facade of legitimacy. They have targeted platforms like Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche with their fraudulent schemes.

Advocating for Increased Awareness

Given the repetitive nature of these scams, the blockchain community is urging heightened vigilance. Investors are cautioned to be extremely careful when dealing with new projects on platforms like Blast, especially those involving significant fund transfers. Conducting thorough research on project backgrounds, reviewing audits, and understanding fund flow paths are essential steps to protect investments. Furthermore, establishing a community where members can share information and advise each other on identifying suspicious behavior is crucial in preventing further exploitation.

Exposing a Troubling Incident

In a concerning development, it was revealed that an NFT game called Munchables on the Blast platform was exploited, resulting in the theft of \(62 million on March 26. This incident occurred shortly after Blast’s Ethereum Layer-2 network, holding nearly \)2.3 billion in cryptocurrency, launched its mainnet, leading to the release of approximately $400 million worth of Ethereum (ETH).