Blockchain Fraud Group Moves IDR 16 Billion To Blast For New Scheme

JAKARTA - A group with blockchain fraud history on platforms like Magnate, Kokomo, and Lendora is launching a new scheme at Blast. They recently moved around Rp16 billion of laundered funds to finance their fraudulent activities.

According to on-chain detective ZachXBT, the funds were initially transferred from Ethereum addresses linked to previous frauds to other addresses on the Polygon network. Then, the assets were converted to Wrapped ETH (WETH) and transferred through several blockchain networks through connecting services such as Orbiter and Bungee.

Finally, they were used on the Blast platform to buy LEAP tokens, increasing liquidity in what appeared to be another setting for suspicious victims. At the same time, ZachXBT suggested that the same individual might be responsible for another ongoing project called ZebralLending on the Base platform, with the current Total Value Locked (TVL) of around IDR 5 billion.

This group has a history of launching many projects that attracted a significant Total Value Locked (TVL) but then fled with the funds. Their tactics often involve falsifying the document Know Your Customer (KYC) and collaborating with an audit agency that lacks reputation to provide legitimacy performances.

The group has targeted various platforms, including Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche, showing broad operational flexibility and presence in the blockchain world.

The repeated presence of this scam creates a need for vigilance within the blockchain community. Investors are encouraged to be more careful, especially towards new initiatives on platforms like Blast involving significant fund transfers.

Verifying project qualifications, evaluating audit experience, and understanding fund transaction paths are important steps that can be taken to protect their investments. In addition, community members are encouraged to share information and guide each other in identifying suspicious actions to prevent more victims.

A non-fungible token (NFT) game called Munchables, built in Blast, experienced exploits of Rp996 billion on March 26. Munchables announced that they had been hacked and said they were tracking the perpetrators' movements and "tried to stop the transaction."

About Rp6.4 trillion Ether (ETH) was withdrawn from the Blast Ethereum layer-2 network following the launch of the mainnet on February 29, opening nearly Rp36.9 trillion previously locked cryptocurrencies on the network. Blast surpassed Rp33.7 trillion in Total Value Locked (TVL) just days before the newly announced launch of the mainnet was scheduled for later this month.