CryptoSphere by AsCurrency

CryptoSphere: cryptocurrency news, market analysis, blockchain trends and investments. Your essential guide to the digital economy

ZachXBT Unmasks Frauds on Ethereum Layer-2 Networks


ZachXBT warned that a malicious group notorious for perpetrating blockchain fraud has its tentacles spread across various Ethereum Layer 2 networks, including Base, Blast, and Arbitrum.

According to the crypto sleuth, the group was responsible for sizable thefts from projects like Magnate, Kokomo, Lendora, and Solfire. These scammers usually accumulate assets totaling seven figures before absconding with users’ funds.

Malicious Actors Targeting Ethereum Layer-2 Networks

In an extensive report, ZachXBT disclosed that the fraudulent syndicate successfully laundered around $1 million in illicit funds. The group is now using these funds to entice unsuspecting individuals to Leaper Finance, a decentralized lending protocol operating on the Blast network.

Expanding their nefarious activities, ZachXBT has uncovered potential links between the group and another lending protocol named Zebra Lending, situated on the Base network. The investigator highlighted that the deployer of Zebra Lending is associated with an address connected to funds from Lendora and Magnate Finance protocols. Zebra Lending boasts over $300,000 in assets locked within its protocol.

Additionally, the syndicate’s connections extend to Glori Finance, a cross-chain lending protocol established on Arbitrum. This protocol holds approximately $1.4 million worth of digital assets.

ZachXBT investigations
The Malicious Group Transaction Trail. Source: ZachXBT

Interestingly, ZachXBT noted that each fraudulent project highlighted in the report was a Compound V2 fork. Compound is a decentralized protocol enabling users to lend and borrow crypto, with governance facilitated by its native COMP token. Data from DeFiLlama positions Compound among the top five lending platforms, boasting a Total Value Locked (TVL) of $2.57 billion.

Top crypto platforms | April 2024


M2 Exchange

M2 Exchange
Explore →

SunContract

SunContract
Explore →

PrimeXBT

PrimeXBT
Explore →

Coinrule

Coinrule
Explore →

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.




Conclusion

In conclusion, the findings by ZachXBT highlight the presence of a malicious group targeting various Ethereum Layer 2 networks such as Base, Blast, and Arbitrum. This group has been linked to significant thefts from projects like Magnate, Kokomo, Lendora, and Solfire, accumulating assets worth millions before disappearing with users’ funds. The group has now shifted its focus to enticing unsuspecting individuals to platforms like Leaper Finance on the Blast network and Zebra Lending on the Base network. Additionally, connections have been uncovered with Glori Finance on Arbitrum. It is crucial for users to remain vigilant and conduct thorough research before engaging with any decentralized platforms to protect their investments.

  • bitcoinBitcoin (BTC) $ 66,143.00
  • ethereumEthereum (ETH) $ 3,555.14
  • bnbBNB (BNB) $ 606.18
  • solanaSolana (SOL) $ 145.15
  • xrpXRP (XRP) $ 0.485441
  • cardanoCardano (ADA) $ 0.411595
  • shiba-inuShiba Inu (SHIB) $ 0.000021
  • polkadotPolkadot (DOT) $ 6.21