Fraudulent Group Launches New Project on Blast Network, Transfers $1 Million for Liquidity Provision
A group of fraudsters, previously involved in multimillion-dollar thefts from several cryptocurrency platforms, has initiated a new project on the Blast network, as discovered by cryptocurrency expert ZachXBT. The criminals have been linked to a series of scams involving large sums and have now deployed the Leaper Finance protocol on the Blast second-layer network.
The expert identified that these hackers had moved assets worth $1 million from an Ethereum address known for its connection to various fraudulent activities, to the Polygon network. This move was primarily for providing liquidity in the new project. According to ZachXBT, the funds were converted into Wrapped Ethereum (wETH) and transferred across several networks using decentralized cross-chain bridges like Orbiter and Bungee.
Once on the Blast platform, the hackers utilized these assets to purchase Leaper Finance (LEAP) tokens and add liquidity. There is a suspicion that this project may also be part of a fraudulent scheme. ZachXBT also raised concerns that this group might be behind another crypto project called Zebra Lending, which has recently seen its Total Value Locked (TVL) exceed $310,000.
These revelations are particularly alarming as the group has targeted users across multiple networks, including Base, Solana, Scroll, Arbitrum, Ethereum, and Avalanche. The expert has urged investors to exercise caution when participating in liquidity pools on these blockchains.
It is important to note that the developers of the Blast network, an L2 Ethereum-based system, had only recently announced the launch of their mainnet on February 29. This announcement was shortly followed by a 'rug pull' by the RiskOnBlast team within the same ecosystem, which resulted in a loss of $1.3 million.
In addition to these concerning developments, the history of the gaming project Super Sushi Samurai on the Blast network was also highlighted. This project suffered a severe setback due to a hacker attack that drained $4.6 million from its funds.
Investors and users of the cryptocurrency networks mentioned are advised to remain vigilant and perform due diligence before engaging in any new transactions or joining any liquidity pools, especially involving newer projects on the Blast network and related platforms.
