A group notorious for perpetrating blockchain fraud across platforms like Magnate, Kokomo, and Lendora has resurfaced with new schemes on Blast, transferring approximately $1 million in laundered funds to fuel their fraudulent activities.

According to findings by on-chain detective ZachXBT, the funds were initially transferred from an Ethereum address associated with previous scams to another address on the Polygon network. Subsequently, the assets were converted into Wrapped ETH (wETH) and traversed multiple blockchain networks via bridging services such as Orbiter and Bungee.

The laundered funds were then utilized on the Blast platform to acquire LEAP tokens, bolstering liquidity and setting the stage for further exploitation of unsuspecting victims. Simultaneously, it is suspected that the same individuals are behind another ongoing project called ZebraLending on the Base platform, boasting a total value locked (TVL) of approximately $311K.

This group has a track record of launching projects that attract substantial TVL before absconding with the funds. Their modus operandi often involves falsifying Know Your Customer (KYC) documents and collaborating with dubious auditing firms to create an illusion of legitimacy.

Having targeted various platforms including Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche, this group exhibits operational flexibility and a pervasive presence within the blockchain sphere.

The recurrent nature of these scams underscores the importance of vigilance within the blockchain community. Investors are urged to exercise heightened caution, particularly regarding new initiatives on platforms like Blast involving significant fund transfers.

To safeguard their investments, individuals are advised to verify project credentials, scrutinize audit reports, and understand the flow of fund transactions. Furthermore, community members are encouraged to share information and support each other in identifying suspicious activities to prevent further victimization.

Recent incidents, such as the $62 million exploit suffered by the nonfungible token (NFT) game Munchables on Blast, highlight the urgency of addressing security vulnerabilities within blockchain networks. Blast itself experienced a significant outflow of approximately $400 million in Ether (ETH) from its layer-2 network shortly after the mainnet launch, exposing vulnerabilities and raising concerns about the security of staked crypto assets on the network.