Stolen Funds Fuel Disappearance of Scam Crypto Projects
2 min read
Stolen Funds Fuel Disappearance of Scam Crypto Projects
Three cryptocurrency projects mysteriously disappeared from the internet shortly after blockchain investigator ZachXBT revealed that their liquidity was traced back to funds stolen in previous hacks. On April 14, ZachXBT discovered that a wallet address containing stolen funds was providing liquidity to three new crypto projects: Leaper Finance on the Blast platform, Zebra DAO on Base, and Glori Finance on Arbitrum. Further investigations revealed that the same wallet had been used to fund a rug pull project in the past and was currently providing liquidity to several projects on various blockchains.
After being exposed, the projects’ websites and social media accounts were deleted and remain inactive. The person managing the Leaper Finance social media account acknowledged ZachXBT’s ability to uncover fake projects. Just before deleting the account, they complimented the investigator and offered a partnership for a new scam token launch. ZachXBT estimates that the scammers responsible for these projects have stolen millions of dollars from projects like Magnate Finance, Kokomo Finance, Lendora, and Solfire.
This incident indicates a concerning trend where stolen funds are being repurposed to create scam crypto projects that target unsuspecting investors with rug pulls or exit scams. To protect themselves, investors are advised to conduct thorough research on crypto projects, including scrutinizing the founders and team members and verifying the legitimacy of audit reports.
The Ethereum layer-2 protocol Base has experienced a significant increase in cryptocurrency funds stolen through phishing scams. In March, the amount stolen from phishing scammers on Base reached approximately $3.35 million, marking an eighteen-fold increase compared to January. Scam Sniffer, a blockchain anti-scam platform, expects the number of phishing attacks on Base to increase further in April as the platform’s user base and asset count continue to grow.
This rise in phishing scams on Base coincides with the current popularity of memecoins on the Coinbase-backed chain. According to L2Beat, the total value locked on Base has surged by 370% in 2024, reaching above $3.2 billion. As more investors flock to the platform, it becomes a lucrative target for scammers seeking to exploit unsuspecting users.
Kudos to ZachXBT for uncovering these fake projects and exposing the scammers. We need more people like him in the crypto space.
The stolen funds being repurposed for more scams is a never-ending cycle. It’s infuriating to see these scammers keep getting away with it. 😡
The increase in phishing attacks on Base is alarming. Let’s work together to educate and protect users from falling victim to these scams.
ZachXBT, you’re a true hero in the crypto space! Keep exposing these scammers and keeping us safe.
With the popularity of memecoins on Base, scammers are finding it easier to target unsuspecting investors. 😔 Stay educated and cautious, everyone! 🚨❗️
It’s scary to think about how much money these scammers have stolen. They’re literally robbing people of their financial security.
Wow, these scammers are really crafty! It’s so disheartening to see innocent investors being targeted and losing their hard-earned money.