Blockchain investigator ZachXBT has uncovered a disturbing trend involving scam crypto projects misusing stolen funds to provide liquidity before vanishing without a trace. These fraudulent activities span multiple blockchains, including Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche.

In a recent development, three crypto projects abruptly disappeared from the internet shortly after ZachXBT traced their liquidity back to funds acquired through previous hacks. On April 14th, ZachXBT identified a wallet address housing stolen funds that were used to provide liquidity to three new crypto projects: Leaper Finance on Blast (with 1,800 followers on X), Zebra DAO on Base (with 3,200 followers), and Glori Finance on Arbitrum (also with 3,200 followers).

Further investigation revealed that the same wallet had previously funded a rug pull project and was now supplying liquidity to several projects across various blockchains, including Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche.

After being exposed, the projects swiftly deleted their websites and social media accounts, rendering them inactive. Interestingly, the individual behind the Leaper Finance social media account acknowledged ZachXBT's investigative prowess before disappearing. They even went as far as complimenting ZachXBT's skills and offering a partnership for a new scam token launch.

According to ZachXBT, these scammers have been responsible for pilfering millions of dollars' worth of crypto from projects like Magnate Finance, Kokomo Finance, Lendora, and Solfire, among others. This alarming trend suggests that stolen funds are being repurposed to finance fraudulent crypto projects designed to deceive unsuspecting investors through rug pulls or exit scams.

In light of these developments, investors are strongly advised to conduct thorough due diligence before investing in any crypto projects. This includes conducting background checks on the project's founders and team, as well as verifying the legitimacy of audit reports.

Meanwhile, Ethereum's layer-2 protocol Base has witnessed an alarming surge in cryptocurrency funds stolen from phishing scams. According to blockchain anti-scam platform Scam Sniffer, approximately $3.35 million was stolen from phishing scams on Base in March alone, marking an 18-fold increase compared to January.

Scam Sniffer predicts that phishing attacks on Base will continue to rise in April as the chain experiences growth in assets and active users. This surge in phishing scams coincides with a memecoin frenzy on Base, which has contributed to a staggering 370% increase in Base's total value locked, surpassing $3.2 billion in 2024, as reported by L2Beat.