SCAMS

Blockchain detective ZachXBT: Involved in multiple blockchain frauds, raising funds for new project in Blast

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Blockchain detective ZachXBT: Involved in multiple blockchain frauds, raising funds for new project in Blast

Online detective ZachXBT has revealed that a well-known scam group has recently launched a new scheme on the Blast platform.

This team has conducted scams totaling millions of dollars on various platforms including Magnate, Kokomo, and Lendora. According to the latest tracking data, these scammers are using the funds obtained from previous scams to attract more victims.

Entry Blast! Funding Source and Activities of the New Project

Crypto sleuth ZachXBT revealed that last week, a fraudulent group funneled around $1 million of laundered funds into an address on the Blast platform, boosting liquidity to entice more participants.

The funds originated from previous fraudulent activities, underwent several rounds of laundering, and were moved to a new address. The specific fund flow involved transferring Wrapped ETH from the 0xAc9 address on Polygon to the 0x08 address, then bridging through Orbiter to Base, ultimately used for repayment and exchanging LEAP tokens.

Infamous Fraudulent Group

These scammers have previously launched similar schemes on various blockchain platforms such as Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche. Their common tactics include boosting the Total Value Locked (TVL) to millions of dollars, then executing a sudden rugpull and concealing the truth by forging KYC documents and using low-tier auditing firms.

Communities Must Stay Vigilant

Crypto sleuth ZachXBT warns that in the face of these ongoing fraudulent activities, community members need to remain extra vigilant. Investors should thoroughly vet the background of any new projects, especially those involving new platforms or significant fund transfers. Tracking the source and destination of funds can help identify potential risks and avoid falling victim to scams. Additionally, collaborating with reputable auditing firms can further safeguard investment security.