Tech
Binance Co-Founder Says Fake Cryptocurrency News About Elon Musk’s X Led Users Losing Significant Amount of Money
Yi He, the co-founder of Binance, has called on Elon Musk to address the rampant spread of fake cryptocurrency news on X (formerly Twitter). This comes after he became the victim of an identity theft scam that used his identity to promote a fraudulent crypto token.
You approached X to report the promotion of a fake cryptocurrency, falsely attributed to you. “I have not issued any tokens called MemeCoins,” he clarified in his post. He urged his followers and the broader Binance community to stay away from the scam and avoid any investment in this deceptive token.
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Highlighting the severity of the problem, he shared screenshots showing how his name and crypto code were being misused by scammers. “Many people were fooled by this hacker link and lost a significant amount of money today. Is there any way to fix this problem, Elon Musk?” he asked directly, tagging Musk, the owner of X.
Despite Musk’s usual promptness to address such concerns, he has so far remained silent on the issue. This lack of response is especially notable given Musk’s previous commitments to making X a safer space for cryptocurrency discussions.
In March, Scam Sniffer, a leading security firm, reported that crypto phishing scams have led to significant financial losses. According to their report, around 57,000 victims have collectively lost around $47 million (around Rs 392 crore) to such scams, a sizeable portion of which was facilitated through X.
When Musk acquired However, despite implementing numerous changes, the persistence of these scams suggests that much more needs to be done.
The problem of crypto scams is not just limited to X. Recently, the US Federal Trade Commission (FTC) issued a warning about the rise of “Crypto Romance” scams. The FTC highlighted how scammers often build emotional bonds with their victims by posing as cryptocurrency experts to gain trust and defraud them.
“No one thinks their online love interest can scam them, but scammers are good at what they do. They make an emotional connection with you, so you are more likely to believe they are experts in cryptocurrency investing,” Lo said the FTC in its blog post on June 10.
Published by:
Ankita Garg
Published on:
June 17, 2024