A notorious gang, previously involved in blockchain frauds, has been discovered to be launching new projects on the Blast platform, using approximately $1 million in laundered funds to initiate deceptive activities.

Researchers have been tracking the movement of these funds, which were initially transferred from an Ethereum address linked to previous scams to another address on the Polygon network. The funds were then converted to Wrapped ETH (wETH) and transferred through multiple blockchain networks using various bridging services, eventually landing on the Blast platform to buy LEAP tokens, artificially pumping liquidity for potential victims.

This group is also believed to be behind another active project on the Base platform, named ZebraLending, with a live TVL of approximately $311K. They have a history of creating projects that gather significant TVL figures but then disappear with the funds. Their tactics include developing fake KYC documents and partnering with lower-level auditing firms to create a veneer of legitimacy.

The community is urged to be vigilant, especially with new projects on platforms like Blast that involve significant flows of funds. Investors should verify project credentials, review audit reports, and understand the channels through which money transactions occur.

In response to these fraudulent activities, there is a growing demand for stronger security measures on blockchain platforms. This includes adopting strict KYC processes, obtaining audits from reputable firms, and strengthening transaction monitoring systems to detect and prevent sophisticated fund movements associated with money laundering.

Long-term strategies are necessary to enhance blockchain security, such as investor-focused education programs, best practice sharing, and promoting transparency across platforms. Collaboration among blockchain analysts, security professionals, and platform developers is crucial in building stronger defenses against fraud.