Crypto Scammers Exploit Multiple Blockchains, Targeting Unwary Investors with Rug Pull Schemes

Crypto Scammers Exploit Multiple Blockchains, Targeting Unwary Investors with Rug Pull Schemes

Crypto News – Blockchain investigator ZachXBT has uncovered a pervasive scam operation funneling liquidity funds into numerous fraudulent projects spanning multiple blockchains, including Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche.

The nefarious activities of these scammers came to light when three crypto projects abruptly vanished from the online sphere mere hours after ZachXBT traced their liquidity back to funds looted from prior hacks.

On April 14th, ZachXBT identified a wallet address harboring stolen assets, which were being utilized to provide liquidity to three newly-established crypto ventures: Leaper Finance on Blast (with 1,800 followers on X), Zebra DAO on Base (boasting 3,200 followers), and Glori Finance on Arbitrum (also with 3,200 followers).

Subsequent investigations revealed that this wallet had a history of involvement in funding rug pull projects, and presently, it was orchestrating liquidity for multiple projects across diverse blockchains.

In response to exposure on X, the websites and social media accounts of the implicated projects were promptly deleted, yet not without the scammer behind the Leaper Finance social media account acknowledging ZachXBT’s prowess in tracing fraudulent ventures.

In a parting message before their account disappeared, they brazenly remarked, “Nice work! My comrades here at Lazarus fear you yet admire you!” while audaciously extending a partnership offer for a forthcoming scam token launch.

According to ZachXBT, these scammers have plundered millions of dollars’ worth of cryptocurrency from various projects such as Magnate Finance, Kokomo Finance, Lendora, and Solfire, among others.

This pattern indicates that the ill-gotten gains are being repurposed to establish sham crypto projects, poised to execute rug pulls or exit scams on unsuspecting investors.

In light of these developments, investors are strongly urged to conduct comprehensive due diligence on crypto projects before committing funds, including scrutinizing the backgrounds of founders and teams and validating the legitimacy of audit reports.

The Ethereum layer-2 protocol Base witnessed an alarming 18-fold surge in cryptocurrency funds pilfered from phishing scams in March compared to January. According to blockchain anti-scam platform Scam Sniffer, March saw approximately $3.35 million siphoned off by phishing scammers on Base alone.

Scam Sniffer anticipates a further uptick in phishing attacks on Base in April, as the chain’s asset variety and active user base continue to expand.

This surge in Base phishing schemes coincides with a recent frenzy surrounding memecoins on the Coinbase-backed chain. As reported by L2Beat, this craze has propelled Base’s total value locked beyond $3.2 billion, marking a staggering 370% increase thus far in 2024.