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Fake ChatGPT Tokens Doing The Rounds Lure In Crypto Enthusiasts

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Despite having no official affiliation with the programme, dishonest market participants are seeking to capitalise on the current ChatGPT craze in technological circles by releasing phoney tokens with the name of the artificial intelligence chatbot on them.

These tokens have been released in the last several weeks in their hundreds. Of them, 132 unique tokens have been released on the BNB Chain, 25 on the Ethereum blockchain, and ten unique tokens on other blockchains such the Cronos, Solana, Arbitrum, and OKChain. These fraudulent transactions come in response to the decision by software behemoth Microsoft to incorporate OpenAI chatbots for search services on Microsoft’s web browsers.

While ChatGPT was developed by OpenAI, Microsoft’s own chatbot is a custom tool that is reportedly superior to ChatGPT that is available to the general public.

But, con artists are not passing up the chance to profit from the buzz. Despite warning signs, a number of “BingChatGPT” have been issued, seeded with liquidity, and are witnessing trading volumes of thousands of dollars.

Peckshield, a blockchain security company, announced in a tweet on Monday that it had discovered dozens of newly generated #BingChatGPT tokens, of which 3 appeared to be honeypots and 2 had hefty sale taxes.

In the bitcoin world, honeypots are smart contracts that promise to leak their cash to any user who transfers more money to them.

ChatGPT Tokens Scammed As Tax

A user selling $100 worth of a token receives only $50 worth, with the remaining “taxed” amount going to the creator of that smart contract. On the other hand, sales tax refers to the purposeful amount of money taken by an illegal smart contract when a related token is sold. Typically, these amounts are higher than 50%.
According to statistics from DEXTools, over 170 tokens bearing the ChatGPT name are currently available on decentralized exchanges like Uniswap and PancakeSwap.

The most well-known one is issued on Ethereum and has a market valuation of over $250 million, over 300 unique holders, and $600,000 in liquidity. A different BNB Chain-version has a market capitalization of $24 million and liquidity of $246,000. Trade volumes on such bogus tokens, and in some cases, scams, are a sign that the ideal of cryptocurrency betting is still a reality.

DFPI Unveils Crypto Scam Tracker To Help Californians Avoid Fraudulent Activities

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The Department of Financial Protection and Innovation has taken a significant step towards safeguarding Californians from cryptocurrency scams. In an announcement, the agency unveiled the DFPI Crypto Scam Tracker, “a database searchable by company name, scam type, or keywords.”

As per the DFPI, scammers are exploiting people’s growing interest in digital assets to prey on vulnerable individuals in California. The move is in response to the increasing prevalence of scams in the crypto space and is part of the department’s commitment to protecting consumers and investors.

With the Tracker, consumers and investors can research complaints and scams that the public has reported. The goal is to help individuals spot and avoid crypto scams, thereby preventing harm to themselves and others.

DFPI Commissioner Clothilde Hewlett stated:

Scammers are in the shadows, using the public’s interest in crypto assets to take advantage of the most vulnerable Californians. Through the new Crypto Scam Tracker, combined with rigorous enforcement efforts, the DFPI is committed to shining a light on these ruthless predators and protecting consumers and investors.”

How the Crypto Scam Tracker Works

The Crypto Scam Tracker also features a glossary designed to help users better understand common scams. The DFPI will continue to update the database as new scams are reported, enabling prompt alerts to protect the public.

Each year, the DFPI receives thousands of consumer and investor complaints. Among the most reported are imposter scams, which are also challenging for individuals to detect. 

As per the DFPI’s findings, imposter websites are frequently reported scams. These websites or companies often have names that resemble those of legitimate businesses or websites operating in the same market. 

This can create significant confusion for consumers, making them vulnerable to exploitation by bad actors seeking to profit from unsuspecting victims. By taking advantage of this confusion, scammers can easily mislead individuals into making fraudulent transactions.

Moreover, among the 36 complaints currently recorded in the Tracker, the predominant cases involved social media and social engineering scams. These fraudulent schemes typically involve users being deceived into taking action through scams on platforms such as Facebook, WhatsApp, Instagram, TikTok, and dating apps.

Furthermore, a significant proportion of these complaints, around Four-fifths, are categorized by the DFPI as “pig-butchering scams,” which are essentially social engineering ploys employed by scammers to build a rapport and gain the victim’s trust.

Related Reading | Terra Founder Slapped With Lawsuit Over $40B Loss

North Korea Breaks All Records For Crypto Thefts Of 2022

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The 2022 bear was already incredibly brutal. However, scams and hacks made matters worse for the bitcoin market. North Korea was busy stealing money from other people’s wallets while the majority of the world was occupied with tracking down CEOs of insolvent companies who were on the run.

The entire world assumed that North Korea had been organizing numerous hacks over the last few years. There have been several prominent hacks associated with the nation. North Korea will steal the most bitcoins in 2022, according to a recent United Nations assessment that Reuters has obtained.

The report further stated,

“[North Korea] used increasingly sophisticated cyber techniques both to gain access to digital networks involved in cyber finance, and to steal information of potential value, including to its weapons programmes.”

Hackers with ties to North Korea were found to have targeted the networks of major aerospace and defence companies last year. The nation was successful in stealing digital currency assets worth between $630 million and $1 billion.

The 15-member North Korea sanctions committee also received the report from the sanctions monitors.

Unleashing North Korea’s Tricks Over Crypto Theft

Hackers have been found predominantly targeting bridges during the past year. The worst-hit networks included Harmony’s Horizon Bridge and Ronin Bridge. Bridges seem to have become an easy target for these hackers. There were also other parallels between these hacks. This includes emphasizing Asian-based companies. The difficulty of communication may have caused this pattern.

The fact that these N.Korean hackers work 16-hour shifts starting at six in the morning was also exposed. The hackers are reportedly sent to countries like Russia and China for specialised training in cyberwarfare. Furthermore, even with the cooperation of the FBI and other national security organisations, it would be exceedingly challenging to prosecute these hackers. It is definitely impossible to obtain stolen money in your possession.

Even more recently, a Chainalysis investigation claimed that $3.5 billion had been stolen in bitcoin thefts. Given the enormous costs involved in carrying out these hacks, North Korea is to blame for $1.7 billion of the total.

Four Bitcoin Scammers Sentenced to 15 Years in Prison for Stealing $25M

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Four individuals involved in a large-scale Bitcoin and other crypto assets scam that resulted in the theft of $25 million have been sentenced to a combined 15 years in prison. They were found guilty of fraud and money laundering at Preston Crown Court, according to the CPS report.

Three Months Fraudulent Bitcoin Scheme 

The group, consisting of three men and one woman ranging in age from 24-54, participated in a scheme to acquire £21 million (US$25 million) through a fraudulent Bitcoin scheme between October 2017 and January 2018. Their leader, James Parker, who operated the scheme from his home in Blackpool, passed away in 2021 before facing charges.

Despite this, the prosecution service unit, in collaboration with the North West Regional Organised Crime Unit, was able to identify and seize assets acquired through illegal means, totaling approximately £1,000,000 through a Civil Recovery Order in the High Court.

In court, it was revealed that Parker had exploited a loophole to illicitly withdraw £15 million worth of crypto assets from his trading account on an Australian-based exchange. His associates, Kelly Caton and Jordan Robinson were also found to have removed £2.7 million and £1.7 million, respectively, through deceitful means. 

Parker’s financial advisor, Stephen Boys, collaborated with a UK national based in the United Arab Emirates to convert the stolen cryptocurrency into cash and then laundered the money through various foreign-based online accounts.

A Crown Prosecution Service spokesman said:

A very significant amount of the laundered assets have been returned or are in the process of being recovered on the behalf of the Australian cryptocurrency exchange.

Additionally, Jonathan Kelleher, the prosecutor, stated that the individuals in question utilized the internet from their own residences to acquire a substantial amount of Bitcoin, valued at tens of millions of pounds, which they were not entitled to possess.

However, Stephen Boys was sentenced to six years for converting and transferring criminal property. Kelly Caton and Jordan Robinson, both convicted of fraud and the illegal acquisition and conversion of criminal property, received four-and-a-half years each in jail. 

James Austin-Beddoes, also found guilty of fraud and acquiring criminal property, received an 18-month suspended sentence after pleading guilty to converting criminal property, per the report.

Related Reading |  Dogecoin (DOGE), Solana (SOL), and Metacade (MCADE) rise as Markets Show Cooling Inflation

Cryptocurrency Hack Alert: N.Korean Lazarus Group Back With New Dance, Old Tune

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According to Microsoft, a threat actor has been found to be concentrating on bitcoin investment start-ups. In order to remotely access systems, a group Microsoft has identified as DEV-0139 pretended to be a cryptocurrency investment firm on Telegram and used an Excel file weaponized with “well-crafted” malware.

The danger fits into a pattern of recent highly sophisticated strikes. According to a blog post by Microsoft on December 6, the threat actor in this instance joined Telegram channels “used to enable contact between VIP clients and cryptocurrency exchange platforms” while falsely posing as OKX staff. Microsoft further elucidated,

“We are […] seeing more complex attacks wherein the threat actor shows great knowledge and preparation, taking steps to gain their target’s trust before deploying payloads.”

The target was requested to join a new group and then provided with an Excel document that contrasted the VIP fee structures for OKX, Binance, and Huobi. A malicious.dll (Dynamic Link Library) software was secretly sideloaded into the user’s machine along with accurate information and a high level of awareness about the reality of cryptocurrency trading. During the discussion of fees, the target was then instructed to open the.dll file by themselves.

Long Known Attack Technique For Cryptocurrency Funds

The attack method itself is well known. Microsoft asserted that the threat actor was the same as the one discovered using.dll files for related objectives in June and was likely responsible for other cases. Using the AppleJeus malware version and an MSI, DEV-0139 is the same actor that cybersecurity firm Volexity connected to North Korea’s state-sponsored Lazarus Group, according to Microsoft (Microsoft installer). Kaspersky Labs reported on AppleJeus in 2020, and the government cybersecurity and infrastructure security agency of the United States documented it in 2021.

lazarus group employs vhd ransomware on company networks en

Lazarus Group has been formally linked to North Korea’s nuclear weapons program by the U.S. Treasury Department.

The Office of Foreign Asset Control, or OFAC, of the United States Treasury Department has revised the sanctions on cryptocurrency mixer Tornado Cash and added two people to its list of specially designated persons who are engaged in “transportation and procurement activities” for North Korea.

The Department of the Treasury declared on Nov. 8 that it had “delisted and simultaneously renamed” Tornado Cash in addition to using the actions of North Korean citizens Ri Sok and Yan Zhiyong as the foundation for penalties. The government department reaffirmed its allegations that the crypto mixer was involved in the laundering of $455 million in cryptocurrency that had been stolen by the Lazarus Group, which has ties to North Korea.

Metallica Urges Fans ‘Seek And Destroy’ Crypto Scammers Before New Album Launch

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The fact that iconic metal band Metallica warned fans of cryptocurrency giveaway scams just before the release of its eagerly anticipated new album, 72 Seasons, makes it very clear that criminal actors have done no research left undone.

Scammers have begun impersonating metalheads on social media in an effort to capitalize on the excitement around the release of the metal band’s new album and impending tour. However, Metallica was quick to draw attention to “the dark side of social media,” urging followers to avoid Crypto giveaways in the name of the band, saying,

“Let’s be as clear as possible. [Metallica crypto giveaways] are scams.”

It was recently reported that an increase in front-running scams on YouTube, which CertiK, a blockchain security company, claims has increased by 500% in the past year. The persistent metal band’s scams are a factor in the data since the band issued a warning about bogus YouTube channels that direct users to malicious phishing websites.

Additionally, the band’s fans were urged to refrain from communicating with anyone other than verified accounts while dealing with information that might seem “wild and crazy to be true.”

Metallica Names List Of Social Media Channels

The advisory intends to warn non-crypto and general enthusiasts who may be easy targets of the new fraud, even if the crypto community is aware of the telltale signals of a scam.

To prevent their followers from falling for the widespread cryptocurrency giveaway frauds, Metallica also provided a list of their official social media accounts.

As deepfake videos appeared promising a “giveaway” that would “double your cryptocurrency,” the cryptocurrency scammers spared no one, not even the victims of FTX CEO Sam Bankman.

According to local news outlet Channel News Asia, the police warned the public on 19 November 2022 about a website that requests FTX users’ login information and purports to be housed by the US Department of Justice. Targeting local investors concerned by the FTX collapse, the unnamed website asserts that clients “would be able to withdraw their funds after paying legal fees.”

The films in question propagate false information about the strategy for recovering FTX’s funds by using audio that has been altered and old interview footage from SBF.

Crypto Hackers Take Over YouTube Channel of Valorant to Promote Scam

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In one of the most recent crypto scam attacks, the official YouTube channel for the Valorant Champions Tour is compromised. Scammers have taken control of the channel, which has over 597k subscribers, and are promoting cryptocurrency fraud.

A journalist named George Geddes shared the information after posting a screenshot of the hacked channel. Scammers wasted no time in starting to advertise cryptocurrency scams on the hacked channel.

The channel was renamed “ARK Invest CEO [LIVE]” by scammers after all of the videos were removed. In the tweet that Geddes posted, Elon Musk is depicted in a phony video stream that was taken during his July meeting with the ARK Invest team.

Valorant regains the account from crypto hackers

Targeting verified accounts and channels is a common tactic used by cryptocurrency scammers to gain the trust of investors and spread their scams. Elon Musk is a well-known name in the cryptocurrency industry. As of the writing of this article, it appears that the team has taken back control of the channel. The deleted videos have also been restored.

As the use of cryptocurrencies increased, so did the amount of illegal activity. However, based on data from Chainalysis, less money was made through scams in 2022 than it was at the end of July 2021. According to data from the analysis firm, scams currently generate $1.6 billion in revenue.

The decline in cryptocurrency prices is to blame for the decline in scam profits. The majority of the top coins are trading 60–80% below their all-time highs, which indicates that the cryptocurrency market is not in the best of health.

While scam revenue is declining in 2022, theft and hacking are not experiencing a decline. The report from Chainalysis states that from $1.2 billion in 2021 to $1.9 billion in 2022, revenue from hacks and theft has increased. For both situations, the amount is valid through July. The report emphasizes that it is unlikely that this trend will change anytime soon.

Additionally, while scams can be thwarted through the dissemination of information and education, hacks necessitate businesses to enhance their security and conduct regular audits. Regular audits are expensive for many young and developing businesses, so they skip this step, opening the door to potential exploits.

DFPI slaps 11 crypto firms with desist and refrain orders

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Eleven cryptocurrency companies are being targeted by California’s financial regulator, who claims they stole consumer money or ran Ponzi schemes. The DFPI released a press release on Tuesday announcing the most recent enforcement proceedings.

Elevate Pass LLC, Metafi Yielders, and nine other cryptocurrency businesses are the targets of cease-and-desist orders from the DFPI. They claim that these businesses were misusing client money or breaking state securities laws.

The regulator claims in a press statement that “each of the 11 entities allegedly offered and sold unqualified securities and ten of them also made material misrepresentations and omissions to investors.” As in a Ponzi scheme, “the entities are all alleged to have used investor funds to pay purported profits to other investors.”

None of the organizations that California’s regulator targeted have yet provided feedback on the cease-and-desist orders.

A lawsuit against cryptocurrency lender Nexo was recently filed by California authorities 24 hours ago. They claim that their Earn product broke the law regarding securities. As a result, this continues the state’s pattern of closely scrutinizing crypto firms.

According to DFPI Commissioner Clothilde Hewlett, “The DFPI will continue to safeguard California consumers and investors against digital currency scams and frauds.” These steps “not only safeguard consumers but also guarantee that California will continue to be the leading worldwide hub for ethical crypto asset startups and growth.”

Instagram crypto scams: a terrifying reality

Instagram cryptocurrency scams are currently all the rage. These offer free tokens or exclusive insider information on how to profit quickly from Bitcoin or another altcoin. Some of these are more convincing than others, even if many of them are merely ridiculous attempts to obtain your personal information in order to steal your identity and data. However, the Bitcoin giveaway fraud sticks out. The idea is straightforward: If you send an account a modest amount as a fee to claim the supposedly “free” cryptocurrency, they will guarantee to deliver you a particular quantity of Bitcoin.

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Crypto scams

Scammers frequently utilize stolen images to give their accounts a trustworthy appearance. Unfortunately, scammers have started creating phony identities on Instagram to deceive users into falling for their tricks, despite the fact that the majority of trustworthy exchanges and wallets don’t have a presence there.

Sadly, there is no foolproof method to stop scams on Instagram. However, there are a few things you can do to improve your odds of staying out of trouble. First and foremost, make careful to confirm the validity of any posted information.

Alert! A New XRP Scam Lurking Around The Corner

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A new XRP scam is doing the rounds after scammers took control of the official Twitter account of PricewaterhouseCoopers [PwC] Venezuela.

The illegal advert featured Ripple CEO Brad Garlinghouse’s image with the tagline “Big Event Hurry up!” along with a link that tricked potential victims into sending their crypto. The tweet has since been removed from the official handle.

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Alert! A New XRP Scam Lurking Around The Corner 4

Tricksters often utilize social media sites such as Twitter, to reach their victims by promoting fake giveaways or sharing phishing links that can steal user information or even drain their cryptocurrency hot wallet.

Twitter however on its part, has sought to allay any such fears before they arise.

“Like any new feature, we’re intentionally testing Edit Tweet with a smaller group to help us incorporate feedback while identifying and resolving potential issues,” said Twitter in a blog. “This includes how people might misuse the feature. You can never be too careful.”

An edit tweet button was several of the features Elon Musk teased through an online poll during his Twitter takeover bid in April.

But midway through the deal Musk reviewed his position and did a U-turn on the $44 billion bid. The tech billionaire accused Twitter of being dishonest on the number of bots and fake users on the platform, a charge which the social media giant disagreed.

Twitter Scams Are Getting More Sophisticated

Twitter then threatened Musk with litigation and the two parties are now headed for a final showdown in court. As of now, it seems that the social blogging site has no plans to create an “Edit Takeover” button.

Recently a cybersecurity analyst Serpent has pointed out some of the most outrageous crypto and non-fungible [NFT] scams that are having a field day on Twitter.

The expert, who has over 250k followers on Twitter, is the founder of artificial intelligence and community-powered crypto threat mitigation system, Sentinel, TronWeekly reported.

In a 19-part thread posted on Aug. 21, Serpent spoke on how scammers target gullible crypto users through the use of copycat websites, URLs, accounts, hacked verified accounts, fake projects, fake airdrops, and plenty of malware.

BitConnect Founder Under Investigation by Indian Police Following Indictment in the US

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BitConnect founder seems to be in trouble. Indian authorities are currently looking into Satish Kumbhani, the creator of the bitcoin investment website BitConnect, for the multi-million dollar fraud.

According to reports, Kondhwa Budruk, a lawyer from Pune, reported the incident to the cybercrime police on August 16.

As per the initial information report (FIR), the lawyer allegedly lost close to 220 bitcoins, which are roughly worth $5.14 million on the open market. Kumbhani (36) and six other people have been named by the attorney. According to the report, no arrests have reportedly been made thus far.

Fugitive BitConnect Founder Kumbhani Indicted in US Website
BitConnect Founder Under Investigation by Indian Police Following Indictment in the US 6

BitConnect founder was earlier charged with Ponzi scheme allegations

The BitConnect founder was charged by a federal jury in San Diego earlier in February on charges of running a Ponzi scheme. According to this, the founder was discovered to have stolen up to $2.4 billion from later investors by using their money to pay off early investors.

The FIR claims that the complainant in this instance was defrauded of both his initial investment of 54 bitcoins and the returns of 166 bitcoins, which he was reportedly compelled to reinvest in the sites between 2016 and June 2021. Kumbhani and his friends reportedly defrauded investors in a virtual currency scheme, according to senior police inspector DS Hake.

The report was released a few days after Nirmala Sitharaman, India’s finance minister, expressed new worries about investing in virtual assets. “The government has issued an alert. Sitharaman cautioned the general public and startup business owners, “I think all of us will have to express our ideas and act with a little caution on this.

Her remarks also follow an ongoing investigation in which the Indian Enforcement Directorate (ED) froze the bank account of one of the directors of Zanmai Lab Private Ltd, the company that runs the Indian cryptocurrency exchange WazirX, and blocked bank assets worth approximately $46 million that belonged to the troubled crypto exchange Vauld.