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2024-05-10T19:36:59Z

Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/leaperfinancerugpullfoiled.php}} {{Unattributed Sources}} thumb|Leaper Finance Logo/BannerLeaper 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..."

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{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/leaperfinancerugpullfoiled.php}}
{{Unattributed Sources}}

[[File:Leaperfinance.jpg|thumb|Leaper Finance Logo/Banner]]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.

This is a global/international case not involving a specific country.<ref name="zachxbttwitter-13704" /><ref name="leaperfinancetwitter-13705" /><ref name="definewsinfotwitter-13706" /><ref name="tokentide1medium-13707" /><ref name="compassinvestmentmedium-13708" />

== About Leaper Finance ==
"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."

This is a global/international case not involving a specific country.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

* Known history of when and how the service was started.
* What problems does the company or service claim to solve?
* What marketing materials were used by the firm or business?
* Audits performed, and excerpts that may have been included.
* Business registration documents shown (fake or legitimate).
* How were people recruited to participate?
* Public warnings and announcements prior to the event.

Don't Include:
* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
* Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

== The Reality ==
This sections is included if a case involved deception or information that was unknown at the time. Examples include:

* When the service was actually started (if different than the "official story").
* Who actually ran a service and their own personal history.
* How the service was structured behind the scenes. (For example, there was no "trading bot".)
* Details of what audits reported and how vulnerabilities were missed during auditing.

== What Happened ==
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
{| class="wikitable"
|+Key Event Timeline - Leaper Finance Rug Pull Foiled
!Date
!Event
!Description
|-
|April 9th, 2024 6:37:00 AM MDT
|Protocol Launch Tweet
|A tweet promotes the launch of the new platform on Blast.
|-
|April 10th, 2024 6:27:23 AM MDT
|Airdrop Guide Published
|An airdrop guide is published for how to claim the free airdrop, which is used to promote the project.
|-
|April 13th, 2024 8:17:00 PM MDT
|Tweet By ZachXBT
|ZachXBT tweets a warning about the Leaper Finance protocol.
|-
|April 14th, 2024 11:48:00 AM MDT
|Scammers Troll Delete
|The scammers sent a response to ZachXBT claiming to be Lazarus and delete the Twitter account and website.
|}

== Technical Details ==
This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

== Total Amount Lost ==
The total amount lost has been estimated at $140,000 USD.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

== Immediate Reactions ==
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

== Ultimate Outcome ==
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

== Total Amount Recovered ==
There do not appear to have been any funds recovered in this case.

What funds were recovered? What funds were reimbursed for those affected users?

== Ongoing Developments ==
What parts of this case are still remaining to be concluded?
== Individual Prevention Policies ==
{{Prevention:Individuals:Placeholder}}

{{Prevention:Individuals:End}}

== Platform Prevention Policies ==
{{Prevention:Platforms:Placeholder}}

{{Prevention:Platforms:End}}

== Regulatory Prevention Policies ==
{{Prevention:Regulators:Placeholder}}

{{Prevention:Regulators:End}}

== References ==
<references><ref name="zachxbttwitter-13704">[https://twitter.com/zachxbt/status/1779333168383791411 @zachxbt Twitter] (May 9, 2024)</ref>

<ref name="leaperfinancetwitter-13705">[https://twitter.com/Leaperfinance @Leaperfinance Twitter] (May 9, 2024)</ref>

<ref name="definewsinfotwitter-13706">[https://twitter.com/Definews_Info/status/1777677247983620574 @Definews_Info Twitter] (May 9, 2024)</ref>

<ref name="tokentide1medium-13707">[https://medium.com/@TokenTide1/leaper-finance-airdrop-step-by-step-guide-to-elevate-your-crypto-journey-249ddf3eff16 Leaper Finance Airdrop: Step-by-Step Guide to Elevate Your Crypto Journey | by TokenTide | Apr, 2024 | Medium] (May 9, 2024)</ref>

<ref name="compassinvestmentmedium-13708">[https://medium.com/@compassInvestment/are-scammers-behind-the-launch-of-leaperfinance-on-blast-seekers-explain-coin-edition-2a1bf3e5613f Are scammers behind the launch of LeaperFinance on Blast? Seekers explain — Coin Edition. | by Compass Investment | Apr, 2024 | Medium] (May 9, 2024)</ref></references>

Leaper Finance Rug Pull Foiled - Revision history