Blast network layer 2 project falls prey to 500 ETH rug pull

The Blast network’s layer 2 project, RiskOnBlast, has been hit with a significant exploit, commonly referred to as a “rug pull,” leading to the loss of around 500 Ether (ETH). 

The heist surprised the crypto community, primarily because it’s the first of its kind in Blast’s layer 2 ecosystem. The troubling events unfolded when some community members noticed the sudden erasure of RiskOnBlast’s social media presence.

Analysis pointed to a well-orchestrated deception, with crypto reporter Colin Wu, indicating that RiskOnBlast’s official X account had gone dark shortly after funds were siphoned off.

Other prominent names in the crypto space, including analysts and investors, have expressed their dismay, with some questioning the scrutiny involved in the RiskOnBlast venture, which was backed despite having anonymous founders with no established reputation.

RiskonBlast investors lament losses

Investors such as MoonCat2878 shared their personal losses, with claims of losing significant amounts of money, as frustration grew among users of the Blast network. 

They took to X to shed light on the situation and express their intentions to contribute to fund recovery efforts. MoonCat2878 has pledged to donate 1 ETH to blockchain investigator ZachXBT and has also offered to hand over $12,500 to assist in the recovery of lost funds should they be retrieved.

The crypto investor recounted how, upon seeing positive signals from reputable accounts and partnerships within the Blast ecosystem, they initially perceived RiskOnBlast as a promising investment opportunity. However, subsequent public sale changes leading to an uncapped round aroused suspicion. 

Attempts to seek clarity from the RiskOnBlast team led to delayed and unsatisfactory responses, highlighting red flags that MoonCat2878 regrets not investigating further. Despite a later decision to cap the sale, the suspicions proved valid when the project suddenly resulted in investor losses.

Other Blast users, like Blokzi.eth, have contended that the platform’s endorsement of RiskOnBlast led them to believe in its legitimacy, a trust that was broken, resulting in financial harm.

Blast’s reputation

The Blast network, a layer 2 solution built for Ethereum to enhance transaction throughput and cost efficiency, has gained traction in the crypto space with high-profile backers like Paradigm. 

The platform, co-created by Blur co-founder Tieshun Roquerre (aka Pacman), was celebrated for its optimistic roll-up technology and its capacity to host Ethereum decentralized applications (dapps) without requiring changes to their codebase.

However, following the disruption caused by the suspected rug pull, many are casting a skeptical eye on the security protocols of the Blast ecosystem. 

The tech community, including Coinbase’s Andrew Choi, has been actively engaging in discourse, seeking answers to how such a significant breach of trust could occur within an up-and-coming blockchain network.