Michael Joseph McElhiney, age 37 and formerly of Spokane, Washington, has pleaded guilty to wire fraud, the U.S. Department of Justice (DOJ) announced on Wednesday. Between March 4, 2021, and Sept. 10, 2022, McElhiney defrauded investors by falsely claiming to operate a cryptocurrency investment fund called Mac Blockchain Solutions. He contacted victims in person, via […]
Bitcoin News
FBI Warns of Fake Firms Promising to Recover Lost Cryptocurrencies
The Federal Bureau of Investigation (FBI) has alerted the public to “an emerging criminal tactic” targeting investors who have already fallen victim to cryptocurrency scams and seek to recover their lost funds. These fraudsters often claim to be authorized by the FBI, Consumer Financial Protection Bureau (CFPB), or other government agencies to lend credibility to […]
Bitcoin News
FBI Warns of Crypto Scams in Fake Work-From-Home Jobs
The U.S. Federal Bureau of Investigation (FBI) issued an alert on June 4, highlighting a surge in cryptocurrency-related fraud involving bogus work-from-home opportunities. Scammers impersonate legitimate businesses and lure individuals with seemingly simple tasks like clicking buttons or rating services, promising payment through complex and deceptive crypto-based compensation structures. Victims are often tricked into making […]
Bitcoin News
Fake Crypto Airdrop: Tether’s CEO Warns Of Ongoing Supply Chain Email Exploit
Tether’s CEO Paolo Ardoino has alerted the crypto space to another wave of supply chain email scams in an X post. The CEO urged the community to exercise extreme caution while the issue is resolved.
Exciting News: It’s A Scam!
On Wednesday, online reports surfaced of suspicious emails being sent to the crypto community. Per the reports, investors received emails from crypto companies offering an upcoming token airdrop.
First, users received emails from Bitfinex announcing “exciting news” for the exchange. The email revealed an upcoming ERC20 airdrop of their “new $BFX token” for all Bitfinex users. The reason behind the airdrop was the recent approval of Ethereum spot exchange-traded funds (ETF).
The email offered a “claim now” link that redirected to a website asking to connect to the user’s wallet. Despite the suspicious look of the email, investors doubted its legitimacy as it came from the crypto platform’s official address.
After being tested by the community, it was quickly revealed that the lookalike website was a scam page. An X user tested the page with an empty wallet and found they were “not eligible” for the airdrop.
However, the user tried Rabby Wallet’s watch-only feature with a VB wallet. The user found that all the ETH “would be sent to another wallet, so there was no airdrop for vb.” The destination wallet was empty, which suggested that the scam generated a new wallet for each victim.
The user confirmed the theory after testing it with a second wallet. This tactic would make tracking the number of victims and the money involved more difficult.
Likewise, several users reported receiving strange emails from Coinbase asking to verify secondary addresses. The racist email claimed that the crypto exchange was shutting down and stated that all funds would be lost if they didn’t verify their secondary email for withdrawal authorization.
The email also came from the official Coinbase address. However, the post was unauthorized as the sender used racial slurs and doxed himself.
Paolo Ardoino Warns Of Ongoing Crypto Scam
Tether and Bitfinex’s CEO, Paolo Ardoino, took X to address the situation. In his post, Ardoino revealed he had received reports from two independent sources confirming that a prominent vendor used by crypto companies had suffered a security breach.
The vendor, which was not named, manages the mailing lists of several important crypto companies. Similarly, CoinGecko’s COO Bobby Ong warned users about the ongoing supply chain email attack targeting the community:
Several crypto companies may be affected via email blasts of fake token launches. Be careful with email newsletters in the coming days.
Despite being affected by the security breach, Ong assured users that CoinGecko’s website and mobile app had not been impacted and were safe to use. Moreover, he clarified that the crypto-tracking website was not launching a token, nor did it have plans to.
It’s worth noting that this is not the first time a supply chain email attack has targeted the crypto industry. In January, a massive phishing campaign drained around 0,000 from investors after a scammer sent unauthorized emails from different crypto-related companies.
It was revealed at the time that a member of the exploited vendor’s customer support team became the initial point of compromise. As of this writing, there are no official reports of affected users or lost funds yet.
Leading Trader Criticizes Worldcoin’s ‘Predatory’ Tokenomics, Labels WLD a Fake $60B AI Coin
The Worldcoin project’s predatory tokenomics will not result in the “greatest transfer of wealth” to the masses but a transfer to the “pockets of the Worldcoin team and insiders,” a top-ranked trader has asserted. The top trader also accused project promoters of using Open AI co-founder Sam Altman’s past endorsement of Worldcoin to prop up […]
Bitcoin News
Fake NFT Project Hack? CTO Vanishes After Allegedly Stealing 94 SOL
A new rug pull alert sounded on Tuesday after crypto detective ZachXBT unveiled on-chain details of an alleged hack suffered by an NFT project last month. The project’s CTO announced that a response was in the works but ultimately vanished as criticism grew.
Nuddies NFT, A Hack Or Rug Pull?
On-chain sleuth ZachXBT revealed the alleged misuse of funds by the CTO of NFT project Nuddies NFT. In a now-deleted post, its CTO Kyle explained that the project was “derugged from its previous founder” and built differently from other NFT projects.
A short investigation into how @kyledegods faked a hack and stole SOL from his project @NuddiesNFT before spending it on NFTs and lying to holders about how devastated he was about the incident.
On March 3, 2024 Kyle made a post in his Discord server claiming his wallets had… pic.twitter.com/4ne6dtVyA5
— ZachXBT (@zachxbt) April 2, 2024
According to the crypto detective, Kyle faked a hack that seemingly stole the project’s funds. On March 3, the alleged culprit posted on the Nuddies NFT Discord server, informing us of the hack.
The post affirmed that Kyle’s Mac was hacked despite “not clicking in any malicious link.” The CTO concluded that a “zombie process” was on his computer for an undetermined period.
This “mini-program” gave control of the computer to “the hacker.” Through the TeamViewer app the attacker gained access to the project and Kyle’s wallets. The post further explained that 90 SOL, approximately ,000 at today’s price, were taken from the Nuddies NFT creator wallet.
Moreover, the hacker allegedly took control of Kyle’s Discord and stole 150 SOL, worth around ,300, from his wallets. At the time, he claimed to be “mentally destroyed” by the loss of the project’s treasury money.
Nonetheless, the on-chain data compiled by ZachXBT tells a different story. Per the crypto detective’s post, the CTO allegedly lied to the holders and stole the 94 SOL, worth ,000, when the incident occurred.
The post reveals that the funds were transferred during that day from the Nuddies Royalty Wallet to an exchange deposit at 8:20 UTC. The on-chain investigator claims that a destination transaction was found using time analysis. The transaction to one of Kyle’s wallets accounted for 3.42 ETH, around ,700, at 8:21 UTC.
The ETH was seemingly used to buy two NFTs: DeGods 2921 and y00t 10991. The DeGod NFT was used as the CTO’s profile picture on X until yesterday.
CTO Answers The Accusations, Then Vanishes
The accusations didn’t go unnoticed by the suspect, who posted on his X account that he was “preparing the answer” with a wink face emoji. After changing his profile picture, Kyle answered some users’ questions about his credibility, to which he replied that his “conscience is clear.”
In the early hours of Wednesday, Nuddies NFT account shared a now-deleted post informing that the creator wallet was “refilled with 12k USD.” In the post, Kyle reassured that his previous claims of intending to refill the wallet were authentic.
The CTO also claimed he was “waiting for his $W airdrop” to fulfill his promise instead of selling his DeAsset. Additionally, he “stepped out” of the project after giving the access keys to two community members.
However, the story doesn’t end there. Kyle and Nuddies NFT’s account were deleted a couple of hours after the post. The Nuddies website seems not to be working, as reported by an X user.
The project’s future is unsure as one of the community members to whom Kyle gave the access keys was unaware of the situation. Juiceddd, an NFT artist, is one of the two people in charge of the project.
The artist explained that he was responsible for redrawing the entire Nuddies collection while adding “70+ new traits.” Moreover, Juiceddd stated that he “woke up this morning to being the owner of everything.” The artist is contemplating giving his perspective on the incident as he considers that it is generally the artist who “gets fucked” in these situations.
Trezor X Account Hacked: How Much Was Taken In The Fake Crypto Presale?
In the late hours of Tuesday, Trezor’s X account was compromised. The hacker used the hardware wallet company account to promote a fake crypto presale with a malicious link attached.
Members of the crypto community quickly realized the suspicious activity from the company and alerted other X users about the scam. Since then, Trezor’s team has regained control of the account.
Crypto Community’s Solidarity, Hackers’ New Prey
In the now-deleted tweets, the hacker announced that Trezor was “willing to support the $SLERF Community.” Taking advantage of the ongoing efforts from crypto projects and exchanges to raise funds for the affected participants of the Slerf presale debacle.
Community alert: Trezor X/Twitter account is currently compromised pic.twitter.com/hNm2OUjEgE
— ZachXBT (@zachxbt) March 19, 2024
The unauthorized post offered the presale of a fake $TRZR token, which required interested users to send SOL to the hacker’s address. Additionally, Trezor supporters would receive a “separate bonus airdrop” if they went to a website linked in the post.
As it’s customary for phishing scams, the link would redirect to a wallet drainer that takes control of the person’s wallet after they try to “claim the airdrop tokens.”
The crypto community shared their thoughts on the hack. A user pointed out that the security breach was a “bad look” for the company as it focuses on crypto security. Others thanked the users who warned about the hack since it potentially saved them and others from falling for it.
It’s worth noting that many users have raised their concerns about the community’s reaction to the Slerf presale drama. They consider that raising funds for the participants affected sets a precedent of “bailing out” bad actors and will only “enable” similar behavior.
Moreover, scammers have been trying to prey on the community’s good faith to help potential victims and newcomers. As seen with the Trezor hack, the scammer seemingly tried to maximize its gains by utilizing the presale meta trend and the Slerf drama.
“Dumb” Hacker Or Smarter Community?
Usually, the recounting of crypto hacks ends with staggering figures being stolen, but for once, the tale is different. As reported by ZachXBT, the hacker managed to steal ,100 from the unauthorized post, which includes the 25% drainer fee. As part of the loot, the hacker also received a “whooping 0.96 Solana,” as another user pointed out.
Many wondered if the small amount stolen was due to the community intelligently recognizing the scam or the hacker’s inability to perform a big heist. Whatever the case, this is a remarkable feat as the cold wallet company amasses over 200,000 followers that momentarily became potential victims.
— 赤 – 紅色的 (@Ikuma_On) March 20, 2024
Despite this small victory for the community, “It’s .1K more than 0,” as one user said. This raises the question of whether the hack was possible due to a lack of proper security measures or an inside job taking place.
No official explanation has been given yet. Nonetheless, Trezor acknowledged the hack in an X post earlier today.
Alert
We experienced a security incident on our X/Twitter account overnight, despite robust protections including a strong password and 2FA. We continue to investigate.
Please remain vigilant and remember, Trezor will NEVER request funds or assets be sent to any address.…
— Trezor (@Trezor) March 20, 2024
The company affirmed that the hack happened despite its “robust protections,” including two-factor authentication (2FA). At the time of writing, Trezor is continuing its investigation. The statement closed with a message for all users to “remain vigilant.”
US Lawmakers Slam SEC Over Fake Bitcoin ETF Tweet — Say ‘This Failure Is Unacceptable’
U.S. lawmakers are demanding answers from the U.S. Securities and Exchange Commission (SEC) and Chair Gary Gensler regarding the regulator’s X account breach that led to a fake tweet on the social media platform announcing the approval of spot bitcoin exchange-traded funds (ETFs), a decision the commission hadn’t yet made at the time. The SEC says it’s investigating the incident. According to Elon Musk’s X platform, the SEC’s account did not have two-factor authentication enabled at the time the account was compromised.
SEC Investigates X Account Breach, Lawmakers Want Answers
Four U.S. lawmakers sent a letter to U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler on Wednesday “demanding a briefing on the SEC’s compromised X account, which led to a false tweet announcing the approval of bitcoin ETFs on January 9.” The official X account of the SEC was compromised on Tuesday evening.
The letter was signed by the Chairman of the House Financial Services Committee, Patrick McHenry, the Chairman of the Subcommittee on Oversight and Investigations, Bill Huizenga, the Chairman of the Subcommittee on Digital Assets, Financial Technology and Inclusion, French Hill, and the Chairman of the Subcommittee on Capital Markets, Ann Wagner.
“The U.S. Securities and Exchange Commission’s (SEC) ability to fulfill its mission — to
protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation — is directly tied to the Commission’s ability to communicate with market participants,” the lawmakers wrote. “According to X’s preliminary investigation, the SEC account did not have two-factor authentication enabled and an unidentified individual obtained control of a phone number associated with the SEC’s account,” they added, emphasizing:
This failure is unacceptable, and it is disturbing that your agency could not even meet the standard you require of private industry.
“To better understand how this breach occurred and how the SEC will ensure it cannot happen again, please provide a briefing to Committee staff no later than January 17, 2024,” the letter concludes.
Following the incident, X confirmed that the SEC’s account “was compromised,” noting that a preliminary investigation has revealed that “the compromise was not due to any breach of X’s systems, but rather due to an unidentified individual obtaining control over a phone number associated with the @SECGov account through a third party.” X further noted: “We can also confirm that the account did not have two-factor authentication enabled at the time the account was compromised. We encourage all users to enable this extra layer of security.”
Following the X account breach, the SEC issued a statement explaining:
The SEC will work with law enforcement and our partners across government to investigate the matter and determine appropriate next steps relating to both the unauthorized access and any related misconduct.
Several other lawmakers also criticized the SEC and Chair Gensler after the incident. Senator J. D. Vance demanded an explanation, stating: “It is unacceptable that the agency entrusted with regulating the epicenter of the world’s capital markets would make such a colossal error.” Senator Bill Hagerty wrote: “Just like the SEC would demand accountability from a public company if they made such a colossal market-moving mistake, Congress needs answers on what just happened. This is unacceptable. Senator Cynthia Lummis opined: “Fraudulent announcements, like the one that was made on the SEC’s social media, can manipulate markets. We need transparency on what happened.”
What do you think about the SEC letting its X account be compromised and a fake tweet being sent out about the approval of spot bitcoin ETFs? Let us know in the comments section below.
XRP Price Leaps 16% On Fake BlackRock ETF Filing: Details
On late November 13, the XRP price experienced a significant surge, momentarily jumping by 16% following a purported exchange-traded fund (ETF) filing by BlackRock, which quickly turned out to be fake.
The incident began when X (formerly Twitter) users shared a filing in Delaware suggesting that BlackRock, the global asset management giant, had registered the “iShares XRP Trust”. This action is typically a precursor to launching an ETF. Consequently, the XRP price soared to .75, a 16% increase, within just 25 minutes of the news breaking.
However, the excitement was short-lived. Bloomberg ETF analyst Eric Balchunas confirmed the filing as fake after direct communication with BlackRock representatives. Balchunas indicated that the XRP trust had been falsely listed on the Delaware website using the name of Daniel Schwieger, a managing director at BlackRock.
In a X post, Balchunas stated, “This is false! Confirmed by BlackRock by me. Some whacko must have added using BlackRock executive name etc. Cmon man. […] Some ppl questioning whether BlackRock actually confirmed to me this is false. They did. A spokesperson confirmed. If that’s not enough and you are still raging, then please seek medical help.”
Adding to this, Bloomberg’s James Seyffart remarked on the rapid price fluctuation: “Round trip to below where it was before the fake pump. […] That was a quick […] Whoever did this better have covered their tracks because the feds will be looking into them I suspect.” Seyffart also clarified that while the XRP trust filing was fake, the Ethereum ETF filing is legitimate and confirmed.
Why The Odds Of A XRP ETF By BlackRock Were Slim
Scott Johnson, finance lawyer at Davis Polk elucidated why the XRP ETF by BlackRock had little chance to be true: “Would represent an aggressive posture from Blackrock given there’s currently no clear path for XRP to get 19b-4 approval here without a CME futures market / SSA. Not to say it can’t be done, but would require forging a new path.”
Jeremy Hogan, a renowned lawyer from the community, explained the simplicity of spoofing the formation of an ETF, highlighting its fraudulent nature and the ease of execution. Hogan elaborated that “it’s actually very easy and just costs 0. You only need to file two documents (attached), pay the money, and you get a ‘placeholder’ on the state website. ”
He also speculated that the perpetrator could have potentially capitalized on the price surge. “Criminal saw what happened with the ETH trust filing, files the XRP trust ‘filing,’ buys 0k XRP on leverage, sells at 74 cents, and pockets 2-3 million dollars,” Hogan speculated.
At press time, XRP traded at .6636 after briefly touching the 0.618 Fibonacci retracement level.
Blackrock Confirms News of XRP ETF Filing Is Fake
Rumors circulated on Monday that Blackrock, the world’s largest asset manager, has registered to launch an XRP exchange-traded fund (ETF), following its registration of a spot ether ETF. However, Blackrock quickly denied the rumor, confirming that it has not filed to launch an XRP exchange-traded product.
Blackrock Hasn’t File to Launch XRP ETF
As enthusiasm for cryptocurrency exchange-traded funds (ETFs) grows, rumors spread on social media Monday that Blackrock, the world’s largest asset manager, had registered a spot XRP ETF called “Ishares XRP Trust.”
However, several people soon debunked the rumor, including Bloomberg Senior ETF Analyst Eric Balchunas, who alerted his followers on social media platform X that the news is false, citing confirmation from Blackrock. He wrote that “some whacko must have added” the fake information using Blackrock executive names. The fake news sent the price of XRP soaring 7% before losing all of its gains.
In September, rumors circulated that Blackrock had shifted its focus to XRP. Nevertheless, numerous individuals swiftly cautioned against this misinformation, emphasizing that Blackrock was not transitioning from bitcoin to XRP. Despite the Blackrock news being fake, XRP has had some good news lately. The Dubai Financial Services Authority recently approved XRP as a recognized crypto token. In July, District Judge Analisa Torres ruled in the Ripple case that “as a matter of law, XRP is not a security.”
Blackrock has already filed for a spot bitcoin ETF called Ishares Bitcoin Trust, and last week, the world’s largest asset manager filed for a spot ether ETF called Ishares Ethereum Trust. Despite approving some ETFs based on crypto futures, the U.S. Securities and Exchange Commission (SEC) has not yet approved any spot crypto ETFs. SEC Chairman Gary Gensler recently said that the securities regulator is considering between eight to 10 spot bitcoin ETF applications. Some people expect the SEC to approve multiple spot bitcoin ETFs at once, including JPMorgan’s analysts.
What do you think about the fake news of Blackrock filing to launch a spot XRP ETF? Let us know in the comments section below.