Blast Network’s Layer 2 Initiative Hit by 1.2M Dollars Loss Amid Suspected Rug Pull

Crypto News- Investors are reeling as suspicions of a rug pull scam rock Blast Network’s layer 2 project, RiskOnBlast. With losses estimated at around 420 Ether (ETH), roughly $1.25 million, the incident has sent shockwaves through the crypto community.

The saga unfolded when RiskOnBlast vanished from social media platforms, triggering concerns among community members. Arkham Intelligence’s report revealed that the project’s funds were drained on February 25, prompting Etherscan to flag its address as a phishing scam.

Blast Network’s Layer 2 Initiative Hit by 1.2M Dollars Loss Amid Suspected Rug Pull

A rug pull, a notorious tactic in crypto, sees developers abscond with investors’ funds, leaving assets worthless. RiskOnBlast’s abrupt Twitter account deletion fueled suspicions, sparking outrage from investors like MoonCat2878, who pledged support for recovery efforts.

MoonCat2878’s account exposed initial optimism that turned sour amid concerns about changes in RiskOnBlast’s structure. Despite seeking clarification, investors received delayed and unsatisfactory responses, eroding trust.

The fallout has raised questions about Blast Network’s security, drawing industry figures like Coinbase’s Andrew Choi into discussions. Initially praised for its layer 2 solution, Blast Network faces scrutiny over its handling of the incident, despite backing from entities like Paradigm.

As investor trust wavers, concerns mount over Blast Network’s ability to combat fraud and uphold integrity.