ZachXBT, a cryptocurrency detective, has issued a warning about a gang of swindlers looking to deceive new victims with the use of large sums of ill-gotten gains in their latest scam.
A recent investigation revealed that the individuals responsible for pilfering funds from previous initiatives such as Magnate, Kokomo, Lendora, and Solfire have resurfaced, this time with a fresh endeavor on Blast and Leaper Finance.
Multi-Million Dollar Rug Pull Scam Network
Based on ZachXBT’s revelations in a post on X, it appears that this particular group has a past record of carrying out exit scams, which include the incidents involving Magnate losing $6.5 million, Kokomo suffering $4 million in losses, Solfire experiencing $4.8 million worth of damage, and Lendora being targeted for an undisclosed amount.
Previously, the TVL (Total Value Locked) in their system reached seven figures without any intervention, only for the team behind it to subsequently misappropriate all user funds and forge KYC (Know Your Customer) documents, as well as engage low-quality audit firms. According to ZachXBT’s disclosure.
The group has broadened its reach in the blockchain world, carrying out fraudulent activities on multiple platforms including Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche.
Warning to the Community: A gang of swindlers, including Magnate, Kokomo, Lendora, and others, previously known for stealing 8 figs in Leaper Finance, have resurfaced with a fresh scheme on Blast. Stay vigilant!
Last week, approximately $1 million tainted from past scams was used to finance an operation on Blast. Subsequently, they started providing liquidity.
— ZachXBT (@zachxbt) April 14, 2024
ZachXBT additionally connected these entities to fraudulent activities related to Hash DAO, Glori Finance, and ZebraDAO. The aggregate financial damage is estimated to be over $20 million.
In an upcoming post about ZebraDAO, ZachXBT advised users to swiftly remove their assets if they currently have them invested in this platform.
In addition, he points out that the three questionable initiatives are based on Compound V2 and discloses that a review of the primary backers of GLORI uncovered they provided liquidity using funds acquired through the Crolend/HashDAO/HellHoundFi scam.
Scammers Strike Again
Recently, the notorious scam artists are back with a new trick, this time focusing on Leaper Finance in the Blast network. It is believed that they transferred close to a million dollars, earned from previous cons, into a Leaper Finance account, increasing liquidity to attract innocent targets.
After being uncovered as having connections to frauds, Leaper Finance playfully teased investigator ZachXBT, acknowledging him with respect while announcing a new token introduction. They jokingly commented, “Impressive work! My colleagues at Lazarus are wary of you but hold you in high regard!” referring to the notorious hacking group Lazarus from North Korea.
Revised: The scammer began harassing and causing trouble on both the Leaper Finance and Glori Finance X platforms prior to deactivating their accounts.
All three websites for the projects mentioned are now offline as well.
— ZachXBT (@zachxbt) April 14, 2024
In the interim, the Leaper Finance and Glori Finance X accounts have been disabled, and the sites linked to these initiatives are now unavailable.
Based on information from a report published by cybersecurity company Immunefi on February 29, 2024, over $200 million worth of cryptocurrencies was stolen through hacks and rug pulls in 32 distinct cases during the initial two months of the year.
During the same timeframe in 2023, there was a $173 million crypto heist, marking a significant increase of 15.4% compared to that period.
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2024-04-15 23:30