Alert: Malicious Group Targeting Ethereum Layer-2 Networks 🚨
A recent report by ZachXBT revealed a group known for engaging in blockchain fraud activities has been actively targeting various Ethereum Layer 2 networks such as Base, Blast, and Arbitrum. The group has orchestrated significant thefts from projects like Magnate, Kokomo, Lendora, and Solfire, accumulating large sums of assets before disappearing with users’ funds.
The Scam Unveiled
ZachXBT’s investigation exposed the syndicate’s successful laundering of approximately $1 million in illicit funds. The group is now luring unsuspecting individuals to Leaper Finance, a decentralized lending protocol operating on the Blast network, using these funds as bait.
- The fraudulent group has links to Zebra Lending on the Base network, associated with funds from Lendora and Magnate Finance protocols.
- The connections also reach Glori Finance, a cross-chain lending protocol on Arbitrum, housing around $1.4 million in digital assets.
What You Should Do
Considering the risks involved, ZachXBT advises users to swiftly withdraw their assets from these platforms to safeguard their funds.
The Deceptive Trail 🕵️♂️
ZachXBT highlighted a concerning pattern where each fraudulent project identified in the report was a Compound V2 fork. Compound is a decentralized protocol that allows users to lend and borrow crypto, governed by its COMP token. DeFiLlama data places Compound among the top five lending platforms with a TVL of $2.57 billion.
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