With the global expansion of blockchain and cryptocurrencies, more users have entered the space seeking profits and quick investment returns. Scammers have leveraged this influx of newcomers to defraud investors.
ZachXBT's Investigation
Blockchain investigator ZachXBT exposed a scammer known as @ape_31/@60711. This criminal used a demo trading account to sell fake copy trading intelligence, deceiving over 250 people.
Scamming Methods
The scams involved fake wallet screenshots, shady over-the-counter deals, and proxy investment schemes. Often, the perpetrator extorted additional funds after initial deposits using blackmail and intimidation. One victim was promised a quick profit from $10,000 to $100,000 and ended up losing $3,000.
Reactions and Consequences
Some victims were able to gather information that pinpointed the scammer's location in the UK. ZachXBT also released the perpetrator's voice to aid in identification. In a separate investigation on September 19, two Miami hackers were arrested for stealing $243 million in Bitcoin. One user criticized crypto exchange Bybit for its demo trading page that looks too similar to the real platform, facilitating such scams.
ZachXBT's investigations continue to expose criminal activities in the cryptocurrency sector, highlighting the need for improved security and awareness among investors.
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