The Layer-2 platform RiskOnBlast has reportedly been the scene of the first major rug-pull within the Blast ecosystem. Blockchain analytics firm Arkham Intelligence revealed that all funds from RiskOnBlast vanished on February 25th, plummeting to nothing. This incident has raised alarms within the cryptocurrency community.
Funds Vanish Overnight
RiskOnBlast had previously accumulated 420 Ethereum, worth approximately $1.25 million, through a token pre-sale. The sale, featuring the RISK token, lasted just one day, from February 22nd to 23rd. In the aftermath, the funds were transferred to ChangeNOW, a crypto exchange known for its lack of regulation, in several DAI installments.
Coinbase’s tech head Andrew Choi and others issued alerts about the sudden disappearance of RiskOnBlast’s online footprint, including their website and social channels. Moreover, Etherscan has flagged the project’s address as a phishing scam, cautioning users against interactions.
Community Rallies to Trace Stolen Funds
Blockchain investigator Amir Ormu uncovered that the RiskOnBlast team used ChangeNOW to obscure their financial trail, laundering $850,000 via a crypto mixer. The stolen funds were also moved to the MEXC and Bybit exchanges. Following the alleged scam, the crypto community has banded together in an effort to trace and possibly recover the embezzled assets.
The Blast team, composed of just three unidentified members, had previously stirred suspicion by remaining anonymous. Despite early technical hiccups and controversy, the team’s Ethereum-based scaling solution had attracted significant attention with promises of a lucrative airdrop in May, helping it to amass a $2 billion total value led by airdrop enthusiasts.