Blockchain investigator ZachXBT has uncovered a disturbing trend of scammers diverting stolen funds to finance fraudulent crypto projects across multiple blockchains, resulting in the disappearance of three projects shortly after their illicit activities were exposed.

Uncovering the Scam

ZachXBT's investigation revealed that scammers had been funneling stolen funds into liquidity pools for three new crypto projects: Leaper Finance on Blast, Zebra DAO on Base, and Glori Finance on Arbitrum. These projects, boasting significant followings, vanished from the internet within hours of ZachXBT tracing their liquidity back to stolen funds.

Escalating Tactics

Further scrutiny uncovered a pattern of the same wallet address providing liquidity to various scam projects across platforms like Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche. The swift disappearance of the implicated projects underscores the audacity of the scammers, who promptly deleted websites and social media accounts to evade accountability.

Brazen Acknowledgment and Threat

In a bold move, the individual managing the Leaper Finance social media account acknowledged ZachXBT's investigation, expressing both fear and admiration. The scammer even extended a partnership offer for a new scam token launch before abruptly deleting the account.

Recurring Scam Patterns

ZachXBT's findings indicate that the perpetrators behind these scams have a history of targeting and pilfering funds from legitimate crypto projects like Magnate Finance, Kokomo Finance, Lendora, and Solfire. This modus operandi underscores the alarming trend of repurposing stolen funds to fuel fraudulent schemes aimed at unsuspecting investors.

Heightened Vigilance Advised

Investors are urged to exercise caution and conduct thorough due diligence before investing in crypto projects. This includes scrutinizing project founders and teams, verifying audit reports, and assessing the project's legitimacy to mitigate the risk of falling victim to scams.

Rise in Phishing Scams on Ethereum Layer-2 Protocol Base

The surge in phishing scams targeting the Ethereum layer-2 protocol Base has raised concerns, with approximately $3.35 million pilfered from unsuspecting victims in March alone. As the popularity of Base grows, scammers are expected to escalate their phishing attacks, posing a significant threat to investors navigating the burgeoning crypto landscape.

Conclusion

ZachXBT's investigation sheds light on the nefarious activities of scammers exploiting stolen funds to perpetrate fraudulent crypto projects. The incident serves as a stark reminder of the importance of due diligence and vigilance in safeguarding against such scams as investors navigate the evolving crypto ecosystem.