Concerns Voiced About Cryptocurrency Scams
Binance co-founder Yi He has raised concerns about the surge of cryptocurrency scams on the social media platform X, owned by Elon Musk. She questioned whether Musk would take action to address this pressing issue.
Specific Impersonation Scam Highlighted
Yi He’s concern stems from a specific impersonation scam on X. She shared images of accounts that were clear imitations of her handle (@heyibinance) and her real name. In one instance, users were directed to click on a link promising access to Binance-backed memecoins. Yi He clarified that no such coins had been issued. She warned that clicking the link could result in financial loss. “I have not issued any new MEMEcoins. Clicking on the link will result in your money being stolen,” she wrote, highlighting that many were tricked and lost significant amounts of money.
Growing Issue of Crypto Scams on X
Increasing Incidence of Scams
Cryptocurrency scams are thriving on X. Analysts attribute a substantial portion of all crypto scams to activities on the platform. Scam Sniffer, a web3 anti-scam company active on X, conducted an analysis. It revealed that nearly $50 million is lost each month due to account impersonation on X.com.
Challenges with Verification
These issues existed before Elon Musk’s involvement. However, the controversy surrounding his paid verification service may contribute to the public’s vulnerability to impersonation scams. This service allows anyone with a smartphone to register and receive verification. This complicates the task of distinguishing genuine accounts from fraudulent ones. Despite Musk’s intentions to tackle “bot” and “spam” issues, it remains unclear if he has specifically addressed cryptocurrency scams.
High-Profile Account Hacks to Promote Scams
Series of Hacks in 2024
Since early 2024, hackers have targeted several X accounts belonging to major companies and crypto influencers. They used these accounts to lure customers into fake promotions. In January, the US regulator SEC’s X account was hacked. It issued a fake announcement about Bitcoin ETF approvals. The X safety team later attributed this breach to a SIM-swapping attack linked to the official phone number of the @SECGov account.
Other Notable Hacks
Crypto scammers also targeted accounts of Netgear and Hyundai MEA. They pushed scams designed to infect potential victims with cryptocurrency wallet drainer malware. Additionally, in January, cryptocurrency data aggregator CoinGecko experienced a security breach. Their account fell victim to a phishing attack. During a brief period on January 10, a phishing scam link was posted on their X account. It falsely informed users of a CoinGecko token airdrop. The hackers promoted a new cryptocurrency called GCKO, claiming it could be used to pay for API services like the cryptocurrency ANKR.
In conclusion, the proliferation of cryptocurrency scams on X, coupled with the hacking of high-profile accounts, underscores the urgent need for stronger security measures and vigilance among users to mitigate financial losses and protect their assets.
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