May 10, 2024
Latest Cryptocurrency News

Crypto Projects Disappear Following Tracing of Stolen Funds

On April 14, ZachXBT uncovered a wallet address containing stolen funds, which were being used to provide liquidity to three new crypto projects: Leaper Finance on Blast, Zebra DAO on Base, and Glori Finance on Arbitrum. These projects boasted significant follower counts on various platforms.

Further investigation revealed that the implicated wallet had previously financed a rug pull scheme and was currently funneling liquidity to multiple projects spanning various blockchains.

Scammers’ Acknowledgment and Disappearance

Promptly after ZachXBT’s revelations, the websites and social media profiles of the identified projects were swiftly deleted, remaining inactive since.

The scam crypto projects deleted the social media accounts. Source: X

However, the individual managing the Leaper Finance social media account conceded to ZachXBT’s investigative prowess before vanishing.

In a parting statement, they expressed a mix of fear and admiration for ZachXBT’s skills, while brazenly proposing a partnership for a new fraudulent token launch.

Ongoing Scams and Investor Caution

According to ZachXBT, the culprits behind these schemes have pilfered millions from projects like Magnate Finance and Lendora. The pattern indicates a disturbing trend of repurposing stolen funds to fuel deceptive crypto projects, setting the stage for rug pulls or exit scams.

Investors are strongly urged to exercise due diligence before engaging with any crypto project, including scrutinizing team credentials and confirming audit legitimacy.

Rise in Phishing Scams on Ethereum’s Base Protocol

In March, the Ethereum layer-2 protocol Base experienced a staggering 18-fold surge in cryptocurrency losses due to phishing scams compared to January.

Scam Sniffer disclosed that March alone saw approximately $3.35 million drained by phishing scammers on Base.

With Base’s increasing asset variety and user base, Scam Sniffer anticipates a surge in phishing attempts in April. This surge coincides with Base’s burgeoning popularity, driven notably by the recent memecoin frenzy, catapulting its total value locked above $3.2 billion—a remarkable 370% uptick in 2024, as reported by L2Beat.

Image by freepik

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