Blast Platform Used by Fraudsters to Launch Projects: Report

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Based on the findings of investigator ZachXBT, a notoriously deceitful group with a history of executing large-scale scams on different blockchain projects like Magnate, Kokomo, and Lendora, is reportedly launching new schemes on the Blast platform. This group has allegedly moved around $1 million from a laundered source to an address on Blast for the purpose of carrying out fraudulent activities once again.

Attention Members: A previous gang of swindlers, including Magnate, Kokomo, Lendora, and others, have resurfaced with a new scheme on Leaper Finance’s Blast platform. Be cautious.

Last week, approximately $1 million tainted from earlier scams was used to finance an operation on Blast. They are now introducing liquidity.

— ZachXBT (@zachxbt) April 14, 2024

Tracking the Transfer of Laundered Funds

Researchers have closely monitored the transaction of these funds, starting with their transfer from an Ethereum account associated with past scams to a new one on the Polygon network.

Following the process, assets were transformed into Wrapped Ethereum (wETH) and moved across different blockchain networks with the help of bridging services like Orbiter and Bungee. Ultimately, these assets found their way to the Blast platform where they were employed to purchase LEAP tokens, presumably increasing the liquidity for what appears to be another potential scam.

At the same time, based on ZachXBT’s assessment, it is suspected that the same individuals may be involved in another ongoing project called ZebraLending on the Base platform. This project currently boasts a total value locked of around $311,000.

History of Deceptive Operations

This group is notorious for initiating numerous projects that amass substantial Total Value Locked (TVL) funds but ultimately fail to utilize them legitimately. Their tactics involve creating false Know Your Customer (KYC) documents and collaborating with less scrupulous auditing firms to give an illusion of lawfulness. The platforms under their scrutiny span across Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche, showcasing their adaptability and broad reach within the blockchain industry.

In simpler terms, the frequent occurrence of scams in the blockchain world underscores the importance of staying alert within the community. Investors, in particular, should remain vigilant, especially when dealing with new projects such as Blast, which involve large sums of money.

To protect your investments, it’s essential to review a project’s credentials, examine audit reports, and understand the money transfer methods. Furthermore, our community encourages members to exchange information and collaborate in identifying potential scams to prevent further losses.

Protective Measures and Investor Safety

Due to the rising number of fraudulent activities, there is growing necessity for enhanced security on platforms that rely on blockchain. Strict identity verification procedures (KYC) and engaging well-known auditing firms are some steps being taken to safeguard investor assets. Additionally, platforms need to improve their transaction monitoring systems to detect and prevent advanced money laundering schemes.

The recurring presence of fraudulent schemes on Blast’s platform highlights the importance of implementing long-term security strategies in the blockchain industry. By offering investor education programs, sharing best practices, and advocating for transparency across platforms, we can effectively minimize risks. Furthermore, collaboration among blockchain analysts, security experts, and developers will be essential in creating more robust defenses against fraudulent activities.

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2024-04-14 10:42