Apr 2024 - Leaper Finance Rug Pull Foiled - $140k (Global)
"Leaper Finance is an EVM compatible lending/borrowing protocol that launched on Blast Layer 2 Network. Leaper Finance provides peer-to-peer lending solutions that are fully decentralized, transparent and non-custodial." "Leaper aims to be the prime lending platform on Blast by offering highest competitive incentives for money markets, having the deepest liquidity."
"The Leaper Finance Airdrop has recently emerged as a noteworthy event in the crypto space. This step-by-step guide will walk you through the process of participating in the Leaper Finance Airdrop and highlight the benefits of getting involved."
"According to on-chain analyst ZachXBT's monitoring, 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 to bait people in. Over time, the fraudulent team increased their TVL to over a million dollars, then stole all user funds deposited into the protocol, and forged KYC documents using low-level auditing companies. Currently, this fraudulent group has initiated scams on platforms such as Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche."
"In the past they let the TVL grow to 7 figs before stealing all of users funds deposited to the protocol and falsify KYC documents + use low tier audit firms."
"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."
Further Analysis
Leaper Finance promised a decentralized lending protocol with high liquidity. After a promotion through an airdrop, it was uncovered that the liquidity was being provided from funds of previous rug pull events. After the post gained attention, the team claimed (likely a troll) to be working with Lazarus before deleting the Twitter and website of the projects.
How Could This Have Been Prevented?
More Cryptocurrency Exchange Hacks/Scams/Frauds
VoidZ Fake Binance Smart Chain Token > > < < Masa AI Fake Token Rug Pull
Sources/Further Reading
@zachxbt Twitter (Dec 31)
@Leaperfinance Twitter (Dec 31)
@Definews_Info Twitter (Dec 31)
Leaper Finance Airdrop: Step-by-Step Guide to Elevate Your Crypto Journey | by TokenTide | Apr, 2024 | Medium (Dec 31)
Are scammers behind the launch of LeaperFinance on Blast? Seekers explain — Coin Edition. | by Compass Investment | Apr, 2024 | Medium (Dec 31)
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