According to CryptoPotato, crypto investigator ZachXBT has issued a warning about a group of scammers who are reportedly using stolen funds to lure more victims into a new scheme. The group, previously involved in scams targeting projects such as Magnate, Kokomo, Lendora, and Solfire, is now launching a new project on Blast, Leaper Finance. The group has a history of executing 'rug pulls' and is responsible for scams that targeted users of the aforementioned projects, resulting in losses of millions of dollars.
ZachXBT's findings reveal that the group has expanded its operations across various blockchain networks, launching scams on platforms such as Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche. The group is also linked to scams involving Hash DAO, Glori Finance, and ZebraDAO, with cumulative losses attributed to them exceeding $20 million. ZachXBT has warned users to withdraw their assets immediately if they have funds deposited in these protocols.
In their most recent scam, the group has resurfaced with a scheme involving Blast’s Leaper Finance. The alleged perpetrators reportedly injected nearly $1 million, acquired through previous scams, into a Leaper Finance address on the Blast network, boosting liquidity to entice unsuspecting victims. Following the exposure of Leaper Finance’s ties to the scams, the group responded to ZachXBT, taunting the investigator while revealing a ‘token launch.’
Leaper Finance and Glori Finance X accounts have since been deactivated, and the websites associated with these projects have been taken offline. A report from Web3 security firm Immunefi dated February 29 reveals that more than $200 million in cryptocurrencies have been lost due to hacks and rug pulls across 32 separate incidents during the first two months of 2024. This represents a 15.4% rise compared to the corresponding period in 2023, during which $173 million in crypto was stolen.
