- A notorious fraud group moves $1 million in laundered funds for new scams on the Blast platform.
- The group utilizes complex methods including bridge services and falsified KYC documents to orchestrate fraud.
- Investors urged to vet new projects rigorously and watch for suspicious fund movements to protect their assets.
A well-known group involved in blockchain scams has initiated a new series of deceptive projects on the Blast platform, backed by $1 million in laundered money. The funds, originally from an Ethereum address linked to prior scams, were transferred to the Polygon network. This transfer was part of a series of complex transactions including the conversion of assets into Wrapped ETH (wETH) and the use of bridging services such as Orbiter and Bungee.
Increasing Liquidity for Fraud
According to ZachXBT, the fraudsters used the transferred funds on the Blast platform to buy LEAP tokens. This action appears to be part of a strategy to set up a new fraudulent scheme aimed at unsuspecting investors. The group’s activities are not limited to Blast; they are also allegedly behind ZebraLending on the Base platform, where they have gathered a total value locked (TVL) of about $311K.
This notorious group has a pattern of creating projects that initially attract significant investment by appearing legitimate. They often fabricate Know Your Customer (KYC) documents and collaborate with dubious auditing firms to gain investor trust.
Broad Operational Scope
Their fraudulent activities have spanned several platforms including Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche, demonstrating their ability to operate across a wide range of blockchain environments.
The continued activities of this group highlight the ongoing vulnerabilities within the blockchain community. Investors are advised to exercise heightened vigilance, especially when engaging with new platforms like Blast. Ensuring thorough verification of project credentials, reviewing audit reports, and understanding fund transaction pathways are crucial steps for safeguarding investments.
The blockchain community is encouraged to share information and support each other in spotting and reporting suspicious activities. This collective vigilance is essential for preventing further victimization by such fraudulent groups.
