A group with a history of blockchain fraud on platforms such as Magnate, Kokomo and Lendora is launching new programs on Blast. They recently transferred laundered funds worth about $1 million to fund their fraudulent activities.
According to a ZachXBT investigator working on the chain, the funds were initially transferred from an Ethereum address linked to previous scams to another address on the Polygon network. Later, the assets were converted to Wrapped ETH (wETH) and transferred across multiple blockchain networks via bridging services such as Orbiter and Bungee.
They were eventually used on the Blast platform to purchase LEAP tokens, increasing liquidity in what appears to be yet another setup for unsuspecting victims. At the same time, ZachXBT suggests that the same individuals are likely responsible for another ongoing project called ZebraLending on the Base platform, which boasts a current total blocked value (TVL) of around $311,000.
The group has a history of launching a number of projects that attract significant TVL, but then run away with the funds. Their tactics often involve falsifying "Know Your Customer" (KYC) documents and working with less reputable auditing firms to give the appearance of legitimacy.
The group has taken aim at a number of platforms, including Base, Solana, Scroll, Optimism, Arbitrum, Ethereum and Avalanche, demonstrating its operational flexibility and broad presence in the blockchain sphere.
