Gairika Mitra
A cryptocurrency investor recently fell victim to a clever token scam, losing a staggering 896 billion $TitanX valued at nearly $500,000 on Tuesday.
Cybersecurity firm Web3 Antivirus (@web3_antivirus) shared the information on X.
According to reports, the attackers employed a sophisticated tactic, mimicking an original transaction address to deceive the victim. This clever ruse convinced the whale to transfer the substantial sum to the wrong address.
Shockingly, the entire ordeal unfolded in under 12 hours, highlighting the rapid pace and ruthless efficiency of cryptocurrency scammers.
Image source: Web3 Antivirus
Crypto scams are a real concern and can come in different shapes and sizes. The most common kinds of crypto scams are romantic scams, pump-and-dump schemes, social engineering scams, phishing scams, giveaway scams, and lots more. Scams like pug butchering and deep fakes have also gained ground in the recent past.
Biggest token scams in history
Some of the biggest crypto scams in history involve the likes of Mt. Gox, Bitfinex, and Onecoin.
To begin with, Mt. Gox in 2010 reigned supreme as the world’s largest Bitcoin exchange. However, this once-dominant platform met a spectacular downfall in 2014, filing for bankruptcy after a staggering loss of 850,000 Bitcoins (worth approximately $450 million at the time).
A sophisticated hacking scheme that exploited vulnerabilities in Mt. Gox’s security systems caused the downfall. Over several years, attackers infiltrated the exchange’s infrastructure, siphoning off massive quantities of Bitcoin from unsuspecting customers.
The Bitfinex hack of 2016 stands as another cautionary tale in the cryptocurrency world. In this high-profile incident, hackers exploited a vulnerability in the exchange’s security systems. They made a staggering 120,000 Bitcoins (worth approximately $72 million at the time).
While Bitfinex eventually repaid its users, the incident left a lasting mark on its reputation.
Onecoin also serves as another example. Onecoin, founded by Ruja Ignatova in Bulgaria, promised exorbitant returns and boasted its potential to eclipse Bitcoin. However, the reality was far different. Ignatova vanished in 2017, and the company was subsequently exposed as a fraudulent operation.
This caused a loss of billions of dollars by unsuspecting investors. Apart from that, the authorities made numerous arrests in connection with the scam.
The Shib Daily reported previously on the emergence and rise of crypto token scam incidents. Its previous coverages highlighted how scammers increasingly used AI for voice cloning. Some of its headlines also showcased how Australians lost a minimum of $180 million in cryptocurrency scams last year.
Apart from Australia, the U.S. too has been subjected to crypto fraud. Recently, U.S. Senators sent a letter to the US’s largest BTM operators, urging them to address the rise in these scams.
Read More
- Australians Lose $180 Million to Crypto Scams in a Year, Says Federal Police
- BTM Fraud On The Rise, Scammers Targeting Elderly Americans – US Senators
- AI Voice Cloning Scams Rise, Fraud Losses Set to Soar – Deloitte
Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
