Thomas Daniels
A well-documented group with a history of blockchain fraud has initiated a new scheme on the Blast network. On-chain detective ZachXBT has revealed that this group transferred roughly $1 million in laundered money to Base, setting the stage for their latest deceptive enterprise. Originally, the funds were moved from an Ethereum (ETH) address associated with prior fraudulent activities. These funds were routed through the Polygon network, eventually reaching another address.
This operation involved converting the assets to wrapped Ether (wETH) and circulating them across various blockchain networks via bridging services, including Orbiter and Bungee. This intricate movement of funds culminated in their transfer to the Blast network, where they purportedly financed an address linked to Leaper Finance. Leaper Finance is recognized as a decentralized, over-collateralized lending protocol.
ZachXBT has described these transactions as an aggressive influx of liquidity designed to lure unsuspecting investors. Furthermore, he highlighted the connection of these individuals to another project on Base, ZebraLending, which currently holds a total value locked (TVL) of approximately $311,000.
According to ZachXBT, the group’s modus operandi involves launching projects that initially draw significant TVL, only to subsequently abscond with the collected funds. The fraud strategy includes the creation of falsified know-your-customer (KYC) documents and partnerships with questionable security auditing firms to project a veneer of legitimacy.
This revelation underscores the ongoing vulnerabilities within the blockchain ecosystem, prompting investors to exercise heightened vigilance.
