The cryptocurrency world has been witnessing the rise of meme coins lately. With new tokens appearing every day, investors are scanning the blockchain universe in hopes of making a profit. But this enthusiastic search also whets the appetite of fraudsters. Cases of fraud targeting gullible investors are on the rise. An incident that took place on March 17 is one of the most striking examples of this situation. Blockchain detective ZachXBT uncovered a fraud ring impersonating cryptocurrency investor Ansem’s X account. As a result of this fraud, fraudsters obtained an astronomical amount of $ 3 million with the excitement of BOME coin.
BOME coin craze paved the way for fraudsters
The meme coin craze continues with new tokens appearing every day. Driven by fear of missing out (FOMO), investors are scouring the blockchain landscape for the next big profit opportunity. But the mad rush has created a prime hunting ground for scammers looking to take advantage of unsuspecting victims.
On March 17, blockchain detective ZachXBT, known for exposing crypto scams and bad actors, uncovered a phishing scheme that netted scammers a staggering $3 million. The attack involved impersonating the X (formerly Twitter) account of Ansem, a well-known crypto trader.
What were the scammers’ strategies?
The perpetrators’ strategy was deceptively simple. They systematically responded to Ansem’s posts, promoting a fabricated pre-sale event for a token called “BULL.” Naive users, deceived by the promise of quick profits, neglected basic due diligence, invested large amounts, but lost a significant part of their assets. A single victim reportedly lost more than $1 million.
Minutes after the scam was revealed, a stunned Ansem took to X to condemn the misuse of his name to rip off users, calling the incident “utter madness.” This phishing scheme capitalized on the excitement created by the highly anticipated pre-sale event for the trending meme token BOOK OF MEME (BOME). During the fundraising phase, participants sent SOL coins to an address specified by the project’s creator, Darkfarms, and received BOME tokens in return.
Fake account warning
The situation has become even worse as phishers are not only imitating established airdrop programs but also impersonating the people running them. Trying to mitigate the damage, Darkfarms warned users about a fake account spreading misinformation. A quick look at the comments section below Darkfarms’ posts revealed a plethora of copycat accounts preying on unsuspecting investors.
Phishing has become a growing threat in the Web3 ecosystem. Scam Sniffer, a Web3 anti-fraud platform, reported losses of close to $300 million to crypto phishing scams in 2023 alone. The situation seems likely to get worse in 2024. For cryptokoin.com As we reported, more than $100 million was stolen in the first two months.
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