Exposure of Crypto Scam Ring Results in Investors Losing More Than $200 Million

A warning about a fraudulent scheme has been shared by a pseudonymous blockchain examiner named ZachXBT. ZachXBT discovered that a group of scammers had attempted to deceive multiple individuals into transferring over $30 million worth of digital assets. Investigations revealed that the group was responsible for several scams, resulting in losses of $4 million, $6.5 million, and $4.8 million for users of Kokomo, Magnate, and Solfire respectively. The group has also targeted other protocols such as BASE, Solana, Scroll, Optimism, Arbitrum, Ethereum, Avalanche, Hash DAO, Glori Finance, and ZebraDAO, accumulating total losses estimated at over $20 million. The scammers often use professional services to legitimize their platform, which receives significant funding from investors. Investors are caught off guard as the scams occur without any prior warning, rendering their tokens or assets worthless. One recent scam involved the fraudulent group transferring approximately $1 million to the Saltrify Finance address on the Blast network, using funds obtained from previous scams to attract more victims. After ZachXBT exposed their connection to Leaper Finance, the group sent threatening messages to ZachXBT while announcing a “token launch.” The accounts of Leaper Finance and Glori Finance on X have been deactivated, and their landing pages are displaying errors. A staggering $200 million has been lost to hacks and rug pulls in the first two months of 2024 across 32 separate incidents.