A group notorious for perpetrating blockchain fraud has resurfaced on the Blast platform, transferring approximately $1 million in laundered funds to finance new fraudulent schemes. This revelation comes from ZachXBT, an on-chain detective, who tracked the movement of funds from an Ethereum address associated with previous scams to an address on the Polygon network. Subsequently, the assets were converted into Wrapped ETH (wETH) and distributed across multiple blockchain networks using bridging services like Orbiter and Bungee.
The laundered funds were eventually used on the Blast platform to purchase LEAP tokens, suggesting the group’s intention to create liquidity for yet another fraudulent endeavor. Concurrently, ZachXBT speculates that the same individuals may be involved in another ongoing project called ZebraLending on the Base platform, which boasts a significant total value locked (TVL) of around $311K.
This group has a history of launching fraudulent projects across various blockchain platforms, including Magnate, Kokomo, and Lendora. Their modus operandi typically involves fabricating Know Your Customer (KYC) documents and collaborating with less reputable auditing firms to give an illusion of legitimacy. Platforms targeted by this group span a wide spectrum, ranging from Ethereum and Solana to Scroll, Optimism, Arbitrum, and Avalanche, showcasing their adaptability and extensive presence in the blockchain ecosystem.
The recurrence of such fraudulent activities underscores the importance of vigilance within the blockchain community. Investors are urged to exercise caution, especially when dealing with new initiatives on platforms like Blast that involve significant fund transfers. Conducting thorough due diligence, verifying project qualifications, scrutinizing audit reports, and understanding the pathways of fund transactions are essential steps individuals can take to protect their investments. Additionally, community members are encouraged to share information and support each other in identifying suspicious activities to prevent further victimization.
