A Bitcoin holder just lost $1.14 million from the coin to a scam. The user sent 26.4 BTC to online scammers posing as MicroStrategy boss Michael Saylor in a fake gift.
26 Bitcoins lost due to fake scam
Whale Alert, a Twitter account that tracks large crypto transactions, first reported the scam. He described it as the biggest payment for a bogus gift. The fraud was perpetrated via YouTube and a website, ms22.
— Whale Alert (@whale_alert) January 15, 2022
According to Whale Alert, the Bitcoins were likely sent from a Coinbase wallet. Once the crooks received the funds, they deactivated the website and the YouTube channel. Based on the transaction records, the BTC was sent in five transactions.
This is not the first time such a scam has happened. In fact, it’s quite common in the industry for illicit actors to use the identities of popular personalities, agencies, and businesses for theft.
Last year, Elon Musk impersonators stole more than $2 million in a fake scam. The modus operandi is to ask individuals to send cryptocurrencies with the promise of doubling it for them.
Crypto scammers continue to evolve their strategies
As YouTube continues to try to limit the use of its platform for scams, the scammers, however, are relentless as they continue to create more fake videos on the site. A similar event in November resulted in the loss of 3 Bitcoins by an unsuspecting victim.
489 of these scams were launched on YouTube last week. We report them every 15 minutes and they get taken down after a few hours, but the scammers only throw more…
— Michael Saylor⚡️ (@saylor) January 16, 2022
Speaking on why people keep falling for these scams, Whale Alert sharp schemes are becoming more professional, making it easy to deceive people. Already, over $800 million in digital assets have been lost to scams of this nature.
Besides scams, crypto crimes have also taken other forms, from hacks to rug draws. The absence of concrete regulations makes it difficult to find and punish criminals in most cases.
But with regulators’ growing interest in space, criminals may soon find it harder to get away with their crimes.
This event is very unlikely to affect the price movement of Bitcoin. With billions of crypto scams happening every year, this is unlikely to influence the asset. The coin has been bearish for a while with the broader market and it is currently trading around $42,900.