Is Blast’s Leaper Finance a DeFi Project or a Potential Rug Pull? Measures to Safeguard Your Funds.

Scammers are once again targeting the Blast network with a new project called Leaper Finance, using fake KYC documents and low-tier audits to make their scams appear legitimate. If you have deposited funds in Leaper Finance or similar projects, it is crucial to withdraw your assets immediately. The crypto markets have been plagued by scams and hacks recently, and this group of scammers, known for their previous rug-pulls under projects like Magnate, Kokomo, Lendora, and Solfire, has now set their sights on the Blast network. They have funneled around $1 million of laundered money from previous scams into an address on the Blast network, starting their liquidity additions and setting a trap for unsuspecting investors. To expose the deceitful practices of this group, on-chain investigator Zach XBT and @bax1337 conducted thorough research, revealing the extensive rug-pulls orchestrated by the group. These rug-pulls often involve the creation of fake KYC documents and engagement with low-tier audit firms to create a false appearance of legitimacy. This group of scammers has also launched similar schemes across various prominent networks, including Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche. ZebraLending, a project implemented on Base, is suspected to be linked to the same group of scammers. Investors who have deposited funds in projects associated with these scammers, such as Leaper Finance or Glori Finance on Arbitrum, with an overall TVL of $1.4 million, are advised to take immediate action. The sudden halt in activities on these platforms indicates the danger posed by such fraudulent schemes. With their websites now offline, it is clear that these ventures lack legitimacy. All three projects mentioned are purported Compound Version 2 forks, indicating a pattern of replication and exploitation within the DeFi ecosystem. Top holders in Glori Finance have been linked to liquidity from other scams like Crolend, HashDAO, and HellHoundFi. The DeFi and broader crypto community must remain vigilant in the face of this deception. Users are urged to exercise caution and conduct thorough research before engaging with any DeFi project to avoid falling victim to fraudulent schemes that undermine the integrity of the decentralized finance space.