Blast Network’s Layer 2 Project Falls Prey To 500 ETH Rug Pull

The RiskOnBlast exploit affected investors in the Blast network's layer 2 ecosystem, with documented victims like MoonCat2878 reporting significant financial losses. Approximately 500 ETH was stolen in what appears to be a classic rug pull, where project developers abandoned the project after extracting investor funds. The incident occurred on a relatively new layer 2 solution built for Ethereum, which may have had insufficient security audits or measures in place despite having high-profile backers like Paradigm. The exploit happened through what appears to be deliberate actions by project insiders who likely planned the exit from the beginning, taking advantage of investors' trust in the growing Blast ecosystem. This type of fraud is often enabled by a combination of investor FOMO (fear of missing out), insufficient due diligence, and the lack of regulatory oversight in the cryptocurrency space. While Blast has prominent backers, new projects building on this infrastructure should not be automatically considered safe. The people affected are primarily crypto investors who participated in the RiskOnBlast project, potentially thinking that the association with Blast's ecosystem provided an extra layer of security.