Fun

Scam crypto projects using stolen funds for liquidity disappear

News Feed - 2024-04-15 05:04:11

Arijit Sarkar15 minutes agoScam crypto projects using stolen funds for liquidity disappearBlockchain investigator ZachXBT identified scammers providing liquidity funds to several fake projects across multiple blockchains, including Base, Solana, Scroll, Optimism, Arbitrum, Ethereum and Avalanche.144 Total viewsListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksThree crypto projects disappeared from the internet hours after blockchain investigator ZachXBT traced their liquidity to funds looted from previous hacks.


On April 14, ZachXBT identified a wallet address holding stolen funds that were providing liquidity to three new crypto projects: lending protocol Leaper Finance on Blast (1,800 followers on X), Zebra DAO on Base (3,200 followers) and Glori Finance on Arbitrum (3,200 followers).


Further investigations found that the wallet was previously used to fund a rug pull project and is currently providing liquidity funds to several projects across multiple blockchains, including Base, Solana, Scroll, Optimism, Arbitrum, Ethereum and Avalanche.Source:ZachXBT


Shortly after being called out on X, the projects’ websites and social media accounts were deleted and remain inactive. However, the scammer running the Leaper Finance social media account acknowledged ZachXBT’s ability to trace fake projects.The scam crypto projects deleted the social media accounts. Source: X


Right before deleting the account, they said, “Nice work! My comrades here at Lazarus fear you yet admire you!” while offering a partnership for a new scam token launch.Source: ZachXBT


According to ZachXBT, the scammers in question are responsible for stealing millions of dollars worth of crypto from projects such as Magnate Finance, Kokomo Finance, Lendora, and Solfire, among others.


The trend suggests that the stolen funds are being repurposed to create scam crypto projects primed for pulling off rug pull or exit scams on unwary investors.


Investors are advised to conduct thorough research on crypto projects before investing, including doing background checks on the founders and team and confirming the legitimacy of the audit report.


Related:New crypto scam drains users" wallets without transaction approval


Ethereum layer-2 protocol Base saw an 18-fold increase in cryptocurrency funds stolen from phishing scams in March compared to January. According to blockchain anti-scam platform Scam Sniffer, approximately $3.35 million was stolen from phishing scammers on Base in March alone.Source: Scam Sniffer


Scam Sniffer told Cointelegraph it expects even more phishing attacks on Base in April as the number of assets and active users on the chain continues to increase.


The rise in Base phishing scams comes amid a recent memecoin craze on the Coinbase-backed chain which, according to L2Beat, has helped push Base’s total value locked above $3.2 billion — marking a 370% increase so far in 2024.


Magazine:Altseason on the horizon, SEC targets Uniswap, and BTC halving news: Hodler’s Digest, April 7-13# Twitter# Altcoin# Hackers# Scams# Hacks# Investigation# DeFiAdd reaction

News Feed

FSC Regulatory Overhaul Expected to Shut Down 40 Crypto Exchanges in South Korea
FSC Regulatory Overhaul Expected to Shut Down 40 Crypto Exchanges in South Korea A new regulatory overhaul could put 40 out of 60 exchanges out of business in South Korea after the
Binance USD (BUSD): A Case Study for Stablecoin Compliance and Security
Binance USD (BUSD): A Case Study for Stablecoin Compliance and Security sponsored Binance USD (BUSD) has become one of the fastest-growing cryptocurrencies in the world, with a vari
Spot ETFs Fail To Ignite Bitcoin Growth – Analyst
Este artículo también está disponible en español. The Spot Bitcoin ETFs have become a major headliner recently due to heightened levels of market inflows. According to da
Trader turns $2.2K of SOL into $2.26M in 8 hours with new memecoin
Zoltan Vardai14 hours agoTrader turns $2.2K of SOL into $2.26M in 8 hours with new memecoinThe trader made an over 993x gain on their initial investment, spurring insider trading allegations.20956 Total views30 Total sha
Onchain Data Suggests Bitcoin Sell-Off Fueled by New Investors
Onchain Data Suggests Bitcoin Sell-Off Fueled by New Investors While the covid-19 outbreak has caused economic calamity, cryptocurrencies have regained some of the losses that de
ShapeShift settles pre-DAO SEC case, Uniswap hits 2-year high: Finance Redefined
Prashant Jha4 hours agoShapeShift settles pre-DAO SEC case, Uniswap hits 2-year high: Finance RedefinedAmid a marketwide bullish run, Uniswap’s UNI token has reached a new two-year high.304 Total viewsListen to article
Airdrop token prices are crashing — Does Web3 need a new model?
Alex O’Donnell10 hours agoAirdrop token prices are crashing — Does Web3 need a new model?Tokens distributed in airdrops consistently underperform the market. Now, Web3 protocols are exploring new approaches.543 Total
Latest CPI Data Shows Red-Hot Inflation Continues to Thrive in the US, Consumer Prices Jumped 8.2% in September
Latest CPI Data Shows Red-Hot Inflation Continues to Thrive in the US, Consumer Prices Jumped 8.2% in September The latest inflation data from the United States indicates that cons
Official Notice Says Cheap Electricity to End for Inner Mongolian Bitcoin Miners
Official Notice Says Cheap Electricity to End for Inner Mongolian Bitcoin MinersRegional reports say that officials from Inner Mongolia delineated 21 bitcoin mines, as the region pl
Trump floats paying off $35T national debt using Bitcoin
Vince Quill1 hour agoTrump floats paying off $35T national debt using BitcoinThe United States government is adding $1 trillion to the national debt approximately every 100 days, sparking fears of runaway inflation.2114
Hermi De Ramos11 hours agoHow decentralized platforms democratize crypto funding initiativesKriss Baird, the principal figure of Cardano’s Project Catalyst, spoke with Cointelegraph about the initiative, the extent of
Biggest Movers: WAVES Nearly 60% Higher, as AXS Surges Close to 25% in Today’s Session
Biggest Movers: WAVES Nearly 60% Higher, as AXS Surges Close to 25% in Today"s Session WAVES prices surged by almost 60% on Tuesday, leading gainers in crypto markets during today&