While layer 2 networks have become immensely popular in recent months, scammers are targeting newly launched ones and deceiving investors through creative phishing schemes to misappropriate funds.

Blast – the recently launched Ethereum layer 2 network – has caught the attention of these malicious entities, with a victim losing more than $130,000.

Blast Phishing Scam

A fraudster impersonated Paradigm partner Matt Huang to endorse phishing links for Blast. Bitrace was the first to flag the incident, which led to financial damage of over $130,000. According to the popular blockchain analysis data company, the impostor’s message under Blast’s official tweet “has not yet been processed.”

Blast, which went live on November 20th, has rapidly gained popularity amidst increasing interest in layer 2 solutions within the Ethereum ecosystem. It boasts prominent investors, including Paradigm, which led a $20 million investment round along with Standard Crypto.

Within its first week, Blast has attracted a total value locked (TVL) of more than $375 million, as per data compiled by DefiLlama. The platform, created by Tieshun Roquerre, also known as ‘Pacman’ and founder of the NFT marketplace Blur, introduced a unique yield generation model for both ether and stablecoins, capturing the attention of investors.

The protocol’s rapid success is likely to draw the attention of fraudsters engaged in phishing scams, attempting to exploit unsuspecting investors for financial gain.

Backlash From Critics

Less than a week old, Blast has already faced backlash regarding the structure and marketing of its model.

A primary concern revolves around the current limitation on withdrawals from the platform, which will be extended until February 24 of next