The Web3 security company CertiK has unveiled a widespread scam operation across various Telegram channels, leading to significant financial losses and undermining trust in the cryptocurrency space.
Telegram has become a popular platform for communication among cryptocurrency enthusiasts, which scammers exploit by hiring actors to promote fake cryptocurrencies through Telegram channels.
How Scammers Exploit Telegram for Cryptocurrency Schemes
CertiK, a renowned blockchain security firm, is closely monitoring the activities of scammers organizing honeytrap schemes through at least three Telegram channels:
· AltLex
· DON CRYPTON
· SZ Trades – 加密貨幣
These actors use paid actors to provide seemingly legitimate investment tips before cleverly guiding their victims to invest in bogus tokens. This malicious activity has already cost victims around $3.2 million.
Channels like AltLex and DON CRYPTON use sophisticated strategies to promote fraudulent cryptocurrencies. AltLex became known for promoting fictitious tokens such as Linea, Paxos, and Circle using a fake trading identity named Alexander. DON CRYPTON, connected to AltLex via a telegra[.]ph post, hires actors from casting websites to support their activities.
Methods and Consequences of the Scams
These channels initially publish real content to build trust among their followers, which they then exploit to promote new, fake tokens, often feigning their legitimacy and profit potential. These manipulative tactics lead to financial losses and undermine the foundational principle of trust that the cryptocurrency ecosystem relies on.
Fraudulent tokens are often paired with Wrapped Ethereum (WETH) and utilize unverified signature functions, allowing for price manipulation. Once the scammers drain the liquidity, they leave investors with worthless tokens they cannot sell.
Results of CertiK's Investigation
CertiK's investigation revealed wallets connected to these scams and provided insights into the operations and potential locations of the scammers. Although the identity and whereabouts remain hidden, evidence suggests connections to the United Kingdom, adding another layer of complexity to the operation.
CertiK reminds that in accordance with the rules of the British Financial Conduct Authority (FCA), crypto services must include warnings about investment risks, applicable only to individuals in the United Kingdom or those using a British VPN server.
The Importance of Caution When Investing in Cryptocurrencies
This revelation highlights the risks associated with investing in cryptocurrencies, especially for newcomers attracted by the promise of quick gains. It's important to perform thorough due diligence and be skeptical of offers that seem too good to be true.
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
