Researcher Warns of Scam Protocol Leaper Finance

On-chain investigator ZachXBT has uncovered a group of fraudsters attempting to lure new victims through the DeFi liquidity protocol Leaper Finance on the L2 network Blast.

Community Alert: The group of scammers who stole 8 figs with Magnate, Kokomo, Lendora, Solfire, etc is back with a new project on Blast @Leaperfinance

Last week they funded an address on Blast with ~$1M of laundered funds from the previous rugs and have begun adding liquidity… pic.twitter.com/yqRKvZuuye

— ZachXBT (@zachxbt) April 14, 2024

According to the analysis, the perpetrators were behind several rug pulls, including projects Magnate ($6.4 million), Kokomo ($4 million), Solfire ($4.8 million), and Lendora.

“They forged KYC documents and used low-tier auditing firms. Now they have launched scams on Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, Avalanche, and so on,” noted ZachXBT.

The group is also suspected of being responsible for frauds involving Hash DAO, Glori Finance, and ZebraDAO. Losses from the group’s activities are estimated at over $20 million.

In their latest scheme, they funded a Leaper Finance address on the Blast network using nearly $1 million obtained and laundered from previous incidents, adding additional liquidity to entice victims.

Following the publication of the investigation, the Leaper Finance account responded to ZachXBT.

Update: Scammer started trolling before deactivating both Leaper Finance & Glori Finance X accounts.

All three websites for the projects mentioned are now offline as well. pic.twitter.com/Az1TLZDmMq

— ZachXBT (@zachxbt) April 14, 2024

“Good job! My comrades from [North Korean hacker group] Lazarus Group are afraid but admire you,” the message read.

In the same post, the protocol announced the launch of a token. However, the Leaper Finance website and accounts were later deactivated.

According to Blockaid, about 50% of projects on the Solana network that used the token distribution model through pre-sales turned out to be fraudulent.

In March, the administration of the darknet marketplace Incognito Market allegedly conducted an exit scam with the theft of “millions” in Bitcoin and Monero.