RiskOnBlast, a platform on Ethereum layer-2, conducted a 'rug pull' scam over the weekend, leading to a loss of over 420 ETH ($1.25 million) from investors.

The scam affected more than 750 investors, with one reporting a $12,500 loss and another $10,000, as funds were moved to various exchanges.

Following the incident, RiskOnBlast's account and website disappeared, raising concerns over Blast's liability since they had endorsed the platform.

This event marks the first rug pull in the Blast ecosystem, triggering criticism over Blast's vetting process and the broader issue of due diligence in crypto investments.

The Blast team has yet to issue a response regarding the incident.