Meaford, Ontario resident Stephen Carr said he lost nearly $500,000 of his life savings after being scammed by a cryptocurrency scheme on YouTube.
He lost nearly $500,000 of his life savings after being defrauded.
Scammers have repeatedly used the video-sharing site to lure victims, with some even uploading fake recordings of celebrities, including Elon Musk, Steve Wozniak, Bill Gates and Kanye West, appearing to promote dubious cryptocurrency investments.
"I am so sad"
In a recent interview, Carr said he got involved in a crypto scam through a video he watched on YouTube. The criminals promised viewers that they would make huge profits if they invested in their project.
Initially, the Canadian did not see anything suspicious and contacted people. He started with a $250 investment and soon after donated another $2,500.
A little later, Carr requested to withdraw $1,000, which the entity immediately cashed out. This further convinced him that everything was legitimate, and between October 2022 and January 2023, he invested nearly $500,000 (his life savings).
The Canadian’s first doubts arose when he saw his funds grow to $1.3 million CAD and asked to cash out some of his funds. However, the criminals insisted that he pay a $150,000 liquidation fee to complete the withdrawal.
“I got scammed, and in hindsight I invested an absurd amount of money into this and put an absurd amount of trust in these people,” Carl regretted.
The devastated man admitted that the fraud had forced him to sell his house so he could rearrange his life. “I probably have two or three months of available cash left, that’s it,” he added.
Carr said he wanted to share his story so others can be cautious and not make the same mistake.
Jason Tschetter, an Alberta resident who was also defrauded in a similar scheme last year, recently founded Fraud Hunters Canada, an organization that supports victims and helps them recover their funds.
He outlined that criminals have turned cryptocurrency scams into a “real business” and that police lack the necessary time and capacity to research and catch the criminals.
Tschetter said, "Unfortunately, many people experience anger, depression and denial. They may even try to bargain with the criminal, but it just doesn't work. I have spoken to several recovery companies, but many of them are in the same boat and have committed fraud themselves."
Other Crypto Scams on YouTube
Steve Wozniak, one of the co-founders of Apple, filed a lawsuit against YouTube in the summer of 2020, alleging that the platform allowed scammers to use his face to lure people into buying fake Bitcoin giveaways. The American inventor and computer programmer lost the case in 2021 after the court found his arguments to be weak.
Wozniak isn't the only celebrity to have participated in this type of scam. Over the years, criminals have also impersonated Elon Musk, Bill Gates, and others.