Growing Crypto Adoption Spurs New Scams
While blockchain and cryptocurrency adoption keeps growing in most parts of the world, there are more users sniffing around for profits and fast investment returns. However, scammers take advantage of the boom and dupe investors of their hard-earned capital.
ZachXBT Uncovers British Crypto Fraudster
Blockchain investigator ZachXBT reported that one scammer from the UK has single-handedly been responsible for $650,000 in crypto theft over the last 12 months. Working under the pseudonyms @ape_31 and @60711, the scammer targeted over 250 victims by offering a raft of phony tactics.
Bogus Copy Trading and Extortion Tactics
The scammer hoodwinked the investors by offering fictitious advice on copy trading using a demo virtual trading account. Victims were shown screenshots of fake wallets and lured into some questionable over-the-counter deals. Some of them claimed to have lost as much as $40,000, while the scammer used blackmail, asking for more after initial deposits were made.
Victims Help Identify Location of Scammer
It wasn’t until victims could organize and dig up some information that would pinpoint the scammer operating from the United Kingdom. One such finding on a TradingView account was a link to a UK Telecom provider, with voice confirmations from multiple victims further aiding the investigation by ZachXBT.
Bybit’s Demo Trading Platform Slammed
The results caused an uproar against crypto exchange Bybit. Users accused the demo trading page of Bybit of looking very similar to the actual, making it relatively easy to simulate by scammers. But while users keep complaining about it, by Bybit there has not been any serious move in that direction yet.
Conclusion
ZachXBT is tireless in his work of exposing crypto fraudsters, including an investigation that has led to the arrest of two hackers in Miami. His work only underlines the greater need for more security measures within the crypto industry itself, as it would appear that new users remain one of the favorite targets of fraudsters.
