Crypto Expert Alerts Users To Crooks Using The DeFi Protocol

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ApeX Protocol

Several rug pulls, including Magnate, Kokomo, Solfire, and Lendora, have been connected to the DeFi group. ZachXBT, a pseudonymous blockchain investigator, has cautioned about a gang of con artists trying to use millions of money pilfered to trick other people. ZachXBT revealed the results of his examination into Leaper Finance, a lending system built on Blast, in a discussion on X. Based on the study, the organization is responsible for many rug pulls, including ones that affected consumers of Lendora ($4.8 million), Kokomo ($4 million), Magnate ($6.5 million), and Solfire ($4.8 million).

Defi Protocols Helping Crooks Steal User’s Money 

“They used to use low-tier audit companies, fabricate KYC paperwork, and allow the TVL to rise to seven figures before stealing all of the user monies transferred into the DeFi protocol. ZachXBT said, “They have now started frauds on Ethereum, Avalanche, Base, Solana, Scroll, Optimism, Arbitrum, etc.

The organization is thought to be behind frauds on ZebraDAO, Glori Finance, and Hash DAO as well. Over $20 million is said to have been lost as a result of the group. When the creators of a blockchain-based protocol abruptly remove all of their money from a project wallet or liquidity pool, it’s known as a “rug pull,” effectively draining the money that other people have contributed. Usually, there is no prior notice, leaving investors with worthless assets or tokens.