Blast-based Leaper Finance flagged as expert cites nearly $1 million bait

Source Fxstreet
Apr 14, 2024 08:00
  • ZachXBT has flagged Leaper Finance, alleging project heads are associated with previous rugs.
  • On-chain detective associates them with stolen funds on Magnate, Kokomo, Lendora, and Solfire, among others.
  • Reportedly, scammers let TVL grow significantly before rugging, with projects running on Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche.

Renowned on-chain detective ZachXBT has flagged Leaper Finance, a new project on Layer 2 (L2)  network Blast. Blast is an EVM-equivalent optimistic rollup on Ethereum, offering native yield (staking rewards) for Ethereum (ETH) as well as stablecoins (USDC, USDT, DAI) for depositors.

Blast advertises higher speed and cheaper fees besides the passive income incentive for depositors. This explains its allure for projects.

Also Read: Blast L2 backed protocol, Risk, rugs 500 ETH amid shoddy due diligence in project onboarding

On-chain detective flags Leaper Finance

ZachXBT has called community attention to a new project on Blast L2, Leaper Finance, saying, “The group of scammers who stole 8 figs [8 figures] with Magnate, Kokomo, Lendora, Solfire, etc is back…”

According to the on-chain detective, reputed for flagging multiple other rug pulls in the crypto sector, the group funded an address on Blast last week. Specifically, they depositing approximately $1 million of funds sourced and laundered from their previous malpractices. ZachXBT describes these deposits as a liquidity influx intended to bait people.

In the past they let the TVL grow to 7 figs before stealing all of users funds deposited to the protocol and falsify KYC documents + use low tier audit firms.

Reportedly, the group has swindles running on “Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche” networks, ZachXBT says, adding Base-based Zebra Lending to the list of possible rugs.

Neither Leaper Finance nor Zebra Lending immediately responded to FXStreet request for comment.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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