Scams have been as prevalent as ever, but 2024 has particularly highlighted the cunning nature of crypto. According to research from blockchain security company, Immunefi, the crypto industry suffered losses of $336 million due to hacker attacks and scams in the first quarter of 2024.
This Halving year has stirred the crypto market, turning it into a challenging landscape for newcomers eager to enter and for those looking for quick, significant gains.
Scam Alerts on X: The Breeding Ground for Crypto Scammers
On X, Twitter for the friends, scammers find a fertile ground. They set up traps, targeting distracted users and those new to the complexities of web3, offering too-good-to-be-true promises.
Let’s explore some scams we’ve identified in recent months, showcasing some of the most audacious attempts to part people from their digital coins.
Scam Alerts: AI + Crypto, What Could Go Wrong?
Humanized AI (HMZ) emerged as a crypto project with the promise of revolutionizing how artificial intelligence understands human perception. However, it vanished without a trace, leaving investors significantly lighter in the wallet.
Over a fundraising period of one month, Humanized AI managed to accumulate 173 ETH, which amounted to about $665,000. The project introduced an innovative ‘quantify-to-earn’ model, enticing participants with HMZ AI crypto tokens in return for their contributions to data processing tasks. This system was designed to boost engagement by rewarding users with the project’s own tokens.
Yet, after a seemingly successful fundraising phase, the project team transferred all collected funds to a crypto exchange and then erased their digital footprint. The Cyver Alerts team issued a scam alert on X on March 7th.
Scam-as-a-Service
Early this year, Solana’s popularity with memecoins attracted scammers offering specialized tools to exploit users.
Web3 security firm Blowfish, in a February 9 analysis on social media platform X, revealed two Solana drainers capable of bit-flip attacks. Named Aqua and Vanish, these drainers manipulate transaction conditions after a user’s signature is obtained.
Initially, the transaction appears legitimate. However, once signed, the drainers alter the conditions, cleverly flipping the transaction from sending to siphoning Solana (SOL). These drainer scripts are sold on platforms that provide scam-as-a-service tools, highlighting a troubling trend of accessible digital fraud.
Deepfake videos: the new frontier in cyber-scams
Deepfake videos are increasingly used in sophisticated scams on platforms like YouTube, where realistic videos impersonate celebrities or public figures to promote fraudulent schemes, particularly in the realm of cryptocurrency. These deepfakes might entice viewers with promises of lucrative returns in exchange for sending cryptocurrency to a QR code displayed during the video. The QR codes are a key tactic in these scams, as they provide a quick and easy way for victims to send funds under the guise of receiving doubled returns or exclusive access to a fake event.
One notable example occurred during the “SpaceX Starship integrated flight test 2” event last year, where attackers launched fake livestreams on compromised ‘verified’ channels with titles like “SpaceX Launch Starship Flight Test! Elon Musk gives updates on Starship!“, enhancing the deception’s credibility. Recently, a video surfaced on TikTok falsely claiming to feature MrBeast offering new iPhones for $2. Additionally, digital likenesses of BBC personalities Matthew Amroliwala and Sally Bundock have been manipulated to promote known scams alert, further illustrating the diverse applications of this deceptive technology.
Crypto Gambling goes wrong
In recent months, crypto casinos have become a growing trend, attracting attention due to their lack of regulatory oversight and promises of no KYC (Know Your Customer) requirements. However, gambling inherently carries risks, which are amplified in the crypto domain by constant promotions on social networks encouraging participation. Unfortunately, many of these enticing offers turn out to be scams, exploiting the lack of regulation and anonymity provided to users. Given these concerns, frequent scam alerts about such platforms are now more crucial than ever, urging potential participants to proceed with caution.
One of the recent cases, is ZKasino. According to DappRaddar, ZKasino is a cutting-edge, decentralized gambling platform currently operating on multiple networks, including Arbitrum, Polygon, Fantom, and BNB Chain. The platform is preparing to deploy on advanced ZK-Rollup solutions like zkSync and StarkNet in the near future. ZKasino eliminates the need for KYC procedures, user sign-ups, and traditional deposits or withdrawals.
“There is nothing ‘ZK’ about ZKasino except that it lives on zksync, correct? I guess we have to adapt; even ‘ZK’ is now a mainstream-enough buzzword that full-on scammers are adopting it.”
Vitálik Buterin
In a recent controversy, ZKasino was involved in a major incident that caused significant unrest among its users. The platform had initially promised to refund $33 million worth of Ethereum (ETH) that users had bridged to its network. However, instead of fulfilling this promise, the refunded ETH was converted to ZKasino’s native tokens at a discounted rate and placed into a 15-month vesting schedule. This unexpected change has prompted allegations of an exit scam, likening the situation to a romance scam where trust is leveraged for financial exploitation, according to Cointelegraph publication.
Stay Informed, Stay Secure with Pyxine
As we navigate the crypto landscape, the clever scams of 2024 remind us of the need for constant vigilance and timely scam alerts. Protecting your digital assets is crucial, and with Pyxine, you’re never alone in this fight. By staying alert and skeptical, you can safeguard your investments from emerging threats. Remember, if it sounds too good to be true, it probably is. Join us at Pyxine_io, where we ensure your digital journey is both safe and secure. Don’t miss out—join our waitlist now to get early access. Together, let’s stay safe from scams!
Want to learn more about Pyxine? Read our story in the article: From a real bad experience to a product idea.
