Warning: Beware of New Crypto Scam Revealed by Zach XBT
A group of crypto scammers, known for previous rug pulls with projects like Magnate, Kokomo, Lendora, and Solfire, has launched a new scheme targeting Blast network users. This nefarious group, exposed by Zach XBT and @bax1337, has been engaging in fraudulent activities that deceive investors and siphon large sums of Total Value Locked (TVL) from innocent participants.
Uncovering the Scam Tactics
- Zach XBT and @bax1337 discovered the gang’s modus operandi
- Rug pulls involve fake KYC documents and low-tier audit firms
- Investors unaware of the risks have suffered significant losses
The scammers recently expanded their operations to other prominent networks like Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche. Another project, ZebraLending, operating on Base with a TVL of $311K, may be linked to the same group of fraudsters.
Protecting Your Assets
- Cash out and withdraw funds from questionable projects
- Exercise caution and conduct thorough research before investing
- Avoid projects associated with known scammers
Leaper Finance, Glori Finance on Arbitrum, and similar projects tied to the scammers have abruptly ceased operations, indicating their fraudulent nature. These Compound Version 2 forks mimic legitimate DeFi protocols, luring unsuspecting users into financial traps.
The DeFi community must remain vigilant against such threats. By staying informed, conducting due diligence, and heeding warning signs, individuals can protect themselves from falling victim to malicious schemes that jeopardize the integrity of decentralized finance.
Hot Take: Safeguarding Your Crypto Investments
Stay alert, verify project legitimacy, and prioritize security to avoid falling prey to malicious actors in the DeFi space. Remember, protecting your assets is paramount in the evolving landscape of digital finance.
Cino Gaperi stands out as a prominent crypto analyst, accomplished researcher, and adept editor, making significant contributions to the field of cryptocurrency. With a strong background in crypto analysis and research, Cino’s insights delve deep into the intricate aspects of digital assets, appealing to a diverse audience. His keen analytical skills are complemented by his editorial proficiency, allowing him to distill complex crypto information into easily digestible content.