The post Crypto Scammers Strike Again; Leaper Finance Accused With Liquidity Provisioning Via Money Laundering appeared first on Coinpedia Fintech News
A new scheme coined by a notorious group of crypto scammers who have pulled rugs with previous projects such as Magnate, Kokomo, Lendora and Solfire has been released meant for users of the Blast network via @Leaperfinance Twitter account. Their newest scam is to send approximately $1 million of what an investigation determined was laundered …
The post Crypto Scammers Strike Again; Leaper Finance Accused With Liquidity Provisioning Via Money Laundering appeared first on Coinpedia Fintech News
A new scheme coined by a notorious group of crypto scammers who have pulled rugs with previous projects such as Magnate, Kokomo, Lendora and Solfire has been released meant for users of the Blast network via @Leaperfinance Twitter account.
Their newest scam is to send approximately $1 million of what an investigation determined was laundered money from previous scams into an address on Blast; they start the liquidity additions that will trap the innocent.
Zach XBT Reveals New Set of Research
The research carried out by on-chain investigator Zach XBT along with @bax1337 has exposed the type of activities that this gang engages in. The rug pulls amount to huge sums of TVL, and these happen after rigorous faking of KYC documents as well as the use of low-tier audit firms, which could be used to create a false sense of the project’s legitimacy.
The sad part is that the approach has been so deceptive for investors who were never aware that they would lose a lot.
Besides Leaper Finance, they recently launched several similar schemes in many other prominent networks such as Base, Solana, Scroll, Optimism, Arbitrum, Ethereum and Avalanche.
A project called ZebraLending that is implemented on base and currently live with a TVL of $311K might be a part of the same group of scammers.
More Suspicion as Social Media Goes Offline
To users who deposited funds in Leaper Finance, Glori Finance on Arbitrum (with an overall TVL of $1.4 million) or any other project tied to the scammers, the effort of cash out as well as withdrawing of assets is highly recommended.
The sudden cessation of activities in Leaper Finance and Glori Finance X accounts is a clear indication that these fraudulent firms can be dangerous and should be avoided. The fact that their websites are offline now shows that these ventures are not legitimate.
All three projects mentioned hereof are said to be Compound Version 2 forks, suggesting an ongoing replication and exploitation in the DeFi ecosystem. A striking aspect about the top holders in Glori Finance is that it involves added liquidity, which might be from other scams like Crolend, HashDAO, and HellHoundFi.
The DeFi and wider crypto community continue to be on the watch against such menace. Users are required to exercise the utmost suspicion and conduct thorough research before participating in any DeFi project.
Through constant awareness and suspicion toward projects that carry negative signs or present an unsatisfied breakdown of the scheme, individuals can better avoid falling into fraudulent schemes that pose a real threat to the integrity of the decentralized finance space which is still vulnerable.
