Blockchain fraud group shifts $1M to Blast for new schemes

This group has a history of launching numerous projects that attract significant TVL but later abscond with the funds.

A group with a history of blockchain fraud on platforms like Magnate, Kokomo, and Lendora is launching new schemes on Blast. They have recently moved around $1 million in laundered funds to finance their fraudulent activities.

According to on-chain detective ZachXBT, the funds were initially moved from an Ethereum address linked to previous scams to another address on the Polygon network. Later, the assets were converted into Wrapped ETH (wETH) and moved across multiple blockchain networks via bridging services like Orbiter and Bungee.

Eventually, they were used on the Blast platform to purchase LEAP tokens, increasing liquidity in what appears to be another setup for unsuspecting victims. At the same time, ZachXBT suggests that the same individuals are probably responsible for another ongoing project called ZebraLending on the Base platform, boasting a current total value locked (TVL) of around $311K.

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