Cryptofraud

YouTube Turned into a Fraud Tool
Once innocent and forgotten YouTube accounts have become a powerful weapon in the hands of cybercriminals. Researchers at SentinelLABS are warning of a sophisticated and persistent campaign that uses these aged accounts to promote fake crypto trading bots. Disguised as profitable video tutorials, these scams actually lure users into deploying malicious smart contracts — with one goal: drain their wallets.
According to lead threat researcher Alex Delamotte, this is a widespread and ongoing threat targeting hopeful investors looking for profitable tools.

How Does the Scam Work?
At first glance, everything seems legit: the videos feature high-quality visuals, AI-generated narrators, and convincing explanations that entice viewers to deploy so-called arbitrage bots or MEV (Maximal Extractable Value) tools.
🔹 Users are redirected to a website that provides the source code of a “smart contract.”

🔹 They are instructed to deploy it via platforms like Remix, a common Ethereum development environment.

🔹 The promise? Easy passive income and arbitrage profits.
In reality, the smart contract is rigged to secretly include the attacker’s wallet address. It uses various obfuscation techniques — XOR operations, string concatenation, or hexadecimal address generation — to hide its true purpose from plain sight.
Once the user deploys the contract and sends at least 0.5 ETH (allegedly to cover gas fees), the contract’s internal logic activates and allows the attacker to instantly steal the funds. In some cases, the attack is triggered automatically, even if the user doesn't explicitly interact with the contract afterward.

A Profitable Fraud Scheme
SentinelLABS identified several scam-linked wallets, with one standing out in particular. The address associated with YouTube user @Jazz_Braze received 244.9 ETH, worth over $900,000.
The stolen funds were quickly moved through more than 20 secondary wallets, pointing to a sophisticated money laundering operation.

Old Accounts, New Threat
The YouTube channels used in the scam weren’t newly created — many previously hosted videos related to crypto or pop culture. Delamotte notes that these accounts were likely purchased through Telegram groups or other black-market platforms.
The age and prior content give these accounts a false sense of trust and credibility. Many videos feature AI-generated positive comments, while negative feedback is heavily moderated or removed altogether.

What Are Crypto Trading Bots and MEV?
Crypto trading bots are legitimate tools that automate trades using predefined strategies. They can track market trends, detect price inefficiencies, and execute orders much faster than a human trader.
A special category is MEV bots, which scan blockchain mempools (pending transactions) to exploit transaction ordering for profit.

Fun fact: A bot known as arsc once used such strategies to extract nearly $30 million from unsuspecting Solana users using “sandwich attacks” — inserting its own transactions before and after a target trade.

A Clear Warning for Crypto Investors
SentinelLABS is urging all crypto traders and investors:
Never deploy code from social media videos or influencer tutorials, no matter how promising they seem.
As Delamotte bluntly puts it:
"If something sounds too good to be true, it usually is — especially in crypto."

60-Second Summary:
🔹 Scammers exploit old YouTube accounts to spread fake crypto bots

🔹 Users are tricked into deploying malicious code that drains their wallets

🔹 One scammer wallet collected over $900,000 in ETH

🔹 MEV bots are real but can be misused for attacks

🔹 Always verify sources — extreme caution is a must in the crypto space

#Cryptoscam , #YouTube , #CryptoFraud , #defi , #Web3Security

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,,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.“

Another alarming case of crypto phishing highlights how a single mistake can lead to massive losses. One investor lost over $3 million in Tether (USDT) after falling victim to a sophisticated scam that combined social engineering with malicious code.
According to analytics platform Lookonchain, the victim unknowingly approved a malicious transaction, not realizing it was part of a phishing attack. The firm urged all crypto users to avoid signing any transactions they do not fully understand — one wrong click could wipe out their entire wallet.

2025 Sees Surge in Phishing Attacks
Phishing scams in the crypto space have dramatically increased in 2025. Scammers often distribute fake links designed to steal sensitive information such as seed phrases, private keys, or wallet permissions.
Many platforms also truncate wallet addresses, hiding the middle section, making it difficult for users to verify their legitimacy — a tactic often exploited by attackers.

Other Victims: $900K USDC and a 458-Day Delay
Blockchain data revealed another attack where a scammer stole $908,551 in USDC, following an approval transaction the victim had signed back in April 2024. The attacker patiently waited nearly 15 months for the victim to deposit funds into the compromised address — and then struck.
Security firm Scam Sniffer highlighted this type of “sleeping approval” phishing as a growing threat, relying on attacker patience and highly targeted execution.

The $71 Million Phishing Case
In May 2024, one of the largest known phishing cases saw a user lose $71 million. The attacker eventually returned most of the funds, reportedly under pressure from blockchain investigators who traced a possible IP address located in Hong Kong.

Phishing: The Most Costly Threat in Crypto
A report by Certik confirmed that phishing was the most expensive attack vector in crypto during 2024. Across 296 incidents, over $1 billion in crypto assets were stolen. The real number is likely even higher due to unreported cases or harder-to-track scams like pig butchering.
Certik also published its Q2 2025 Web3 Security Report, revealing 144 incidents that caused $801 million in losses. In that quarter alone, 52 phishing attacks accounted for over $395 million. Ethereum suffered $65.4 million in losses across 70 attacks.
From January to June 2025, the crypto sector saw over $2.5 billion lost in 344 security incidents. A large portion of these included spoofing, with 132 cases causing $410 million in damages.

How to Protect Yourself
Experts strongly recommend using hardware wallets for storage, double-checking URLs, and never signing approvals blindly. Tools like Etherscan’s token approval checker can help revoke unnecessary token permissions — though users must pay gas fees to do so.
In 2023, a group of white hat hackers led by renowned dev Samczun formed a crypto hack response team, designed to help protocols recover from exploits. The group also introduced the Whitehat Safe Harbor Agreement to legally protect ethical hackers involved in rescue missions.

Binance Develops “Antidote” Against Phishing
Crypto exchange giant Binance has also launched its own anti-phishing tool — a real-time “antidote” that scans suspicious addresses and warns users before they mistakenly send funds to scammers.

#PhishingAlert , #Cryptoscam , #CryptoFraud , #CyberSecurity , #CryptoNews

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,,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.“

The founder of the collapsed crypto platform MyConstant has agreed to pay $10.5 million to settle allegations of misappropriating client funds. According to U.S. regulators, including the SEC, Frank Zhang misappropriated over $12 million, promising investors high returns from cryptocurrency lending. The platform ceased operations in 2023, leaving thousands of users without access to their assets. The investigation found that the funds were used for personal expenses, including a lavish lifestyle.

The South Korean crypto scene is once again shaken. Shin Jinwook, CEO of the now-defunct Bitsonic exchange, has received an extended prison sentence after being found guilty of a $72,000 fraud involving the platform’s native token, BSC. This new conviction adds more time to the seven-year sentence he’s already serving for a previous multi-million dollar embezzlement.

🔍 Fake Coin, Fake Profits
The Bitsonic Coin (BSC) was supposed to be the exchange’s flagship token. Instead, it became a tool for manipulation. Shin reportedly inflated BSC’s trading volume and price through fake transactions and misleading announcements to lure unsuspecting investors.
He used the funds—along with counterfeit Korean won deposits—to purchase Bitcoin and Ethereum, which he then cashed out and invested in unrelated companies. According to the court ruling, customers were defrauded of at least 160 million won.

🔒 History Repeats Itself
This is not Shin’s first conviction. In August 2023, he was sentenced to seven years in prison for embezzling 10 billion won ($7.5 million), manipulating trading volumes, and falsifying records on the exchange between 2019 and 2021.
His scheme unraveled when investors were unable to withdraw their funds, eventually revealing that Shin had diverted the money to his personal accounts.

👨‍💻 The Tech Accomplice
Shin didn’t act alone. His tech VP, known only as “Mr. A,” developed software that artificially boosted the BSC token’s price by purchasing crypto owned by Shin himself. Mr. A received a one-year prison sentence for his role.

🏦 The Fall of Bitsonic
Bitsonic was launched in 2018 and offered trading in both Korean won and cryptocurrencies. It attracted investors with promises of profit sharing and rewards for staking its native BSC token.
But in August 2021, the platform suddenly shut down, citing “internal and external issues.” In reality, it was a collapse of trust and liquidity, leaving users unable to withdraw their funds.

❗ The Bitsonic case highlights how even seemingly legitimate platforms can fall hard. And although Shin is now jailed for the second time, one question remains—how many similar crypto scandals are still hiding beneath the surface?

#CryptoFraud , #Cryptoscam , #CryptoSecurity , #DigitalAssets , #CryptoNews

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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.“

A young Canadian, Cameron Albert Redman (22), is headed to prison after running an elaborate crypto scam that exploited hacked accounts on the social network X (formerly Twitter) to rob users of their NFTs and cryptocurrencies. Along with his accomplices, he made nearly $800,000 in just a few days using fake giveaways and fraudulent websites.

The Cyber Scam: Fake Raffles and Emptied Wallets
Redman and his partners gained access to several high-profile accounts — including those of digital creators and major brands like Beeple, Gary Vaynerchuk, Nouns, and Louis Vuitton. They used these accounts to post links to counterfeit websites that mimicked the appearance of official pages, promoting fake NFT “drops” and giveaways.
Victims who clicked the links and approved a transaction believed they were adding an NFT to their wallet — but instead, they unknowingly granted full access to their funds. Their wallets were emptied within moments, and the stolen assets were quickly sold off for illegal profit.

The Sentence: One Year in Prison and a Warning to the Community
A U.S. court sentenced Redman to 12 months in prison for conspiracy, wire fraud, and aggravated identity theft. He had pleaded guilty in May.
While one year may seem lenient given the scale of the scam, court documents highlight that Redman had already been involved in another massive crypto fraud — a SIM swap attack that gave him access to over $40 million in digital assets.
“Redman is an intelligent and experienced cybercriminal. A year in prison didn’t deter him — after his release, he continued planning further scams while living in his father’s basement,” the ruling stated.

NFT Market Shows Signs of Life — But Scams Haven’t Gone Away
Scammers like Redman tend to resurface when the market shows signs of recovery. While the NFT boom of 2021 has faded, recent weeks have brought renewed interest and activity in the space.
NFTs (non-fungible tokens) are unique digital assets tied to art, music, gaming items, or even physical goods like luxury products and real estate. Their value and uniqueness make them highly attractive targets — and crypto wallets remain vulnerable.

🔍 One-Minute Summary:
A young Canadian hacker used hijacked accounts on X to run fake giveaways that tricked hundreds of users into losing their NFTs and crypto. Despite previous crimes, he continued planning new frauds until he was finally sentenced to a year in prison. The case is another reminder of the risks in the digital asset space — and why wallet security matters.

#nft , #scam , #CryptoFraud , #cybercrime , #CyberSecurity

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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.“

Vincent Anthony Mazzotta Jr., also known by aliases such as “Vincent Midnight” and “Director Vinchenzo,” has pleaded guilty nearly two years after his indictment for orchestrating a $13 million cryptocurrency fraud. The elaborate scheme involved fake trading bots powered by artificial intelligence and a fabricated government agency used to further deceive victims.

Sophisticated Crypto Scam
Mazzotta operated platforms like Mind Capital and Cloud9Capital, which falsely promised high returns through automated AI-based crypto trading bots. In reality, the operation functioned as a pyramid scheme. Instead of investing clients’ funds, Mazzotta and his accomplices splurged on private jets, luxury hotels, rental mansions, and personal security.
To hide the trail of stolen money, the group laundered funds using crypto mixers. When the platforms began collapsing, they vanished without notice, leaving investors with no access to their funds.

Round Two: A Fake Government Agency
In a desperate bid to regain investor trust, Mazzotta and his team created a fictitious government entity called the “Federal Crypto Reserve” (FCR), claiming it would investigate the missing funds. Victims were charged new fees for these false services—effectively falling prey to a second layer of fraud.
Later, when one of his associates was indicted in 2022, Mazzotta began obstructing justice: he destroyed evidence, manipulated documents, and falsified business records linked to Runway Beauty Inc.

Facing Justice
Mazzotta has now pleaded guilty to two charges—money laundering and conspiracy to obstruct justice. He faces up to 15 years in federal prison. A sentencing date has not yet been set.

More Scams Unfold
His case isn’t isolated. In June 2025, Dwayne Golden was sentenced to 97 months for orchestrating a $40 million crypto Ponzi scheme through platforms such as EmpowerCoin and ECoinPlus. Golden also tried to obstruct justice by destroying evidence and misleading federal investigators.
U.S. authorities have recently stepped up enforcement against crypto fraud. The Department of Justice is actively pursuing asset forfeiture in hopes of partially reimbursing victims.

#CryptoFraud , #MoneyLaundering , #CryptoCrime , #CryptoSecurity , #CryptoNews

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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.“

One of the central figures behind a massive cryptocurrency scam has pleaded guilty in federal court. Vincent Anthony Mazzotta Jr., who allegedly posed as a government crypto expert, helped orchestrate a Ponzi scheme that defrauded investors out of more than $13 million. He now faces up to 15 years in prison.

Fake Trading Platforms and AI Bot Deception
Between 2017 and 2023, Mazzotta worked alongside Australian co-defendant David Gilbert Saffron, running fraudulent platforms such as Mind Capital and Cloud9Capital. The pair claimed their profits came from sophisticated AI-powered crypto trading bots—which never actually existed.
Mazzotta communicated with victims under various aliases, including “Vincent Midnight,” “Delta Prime,” and “Director Vinchenzo,” pretending to be a trustworthy insider with access to official information.

Lavish Lifestyle Funded by Victims
Instead of investing the funds, the conspirators spent the money on luxury mansions in Hollywood Hills, private jet travel, personal security services, and expensive hotel stays.
According to the December indictment, the duo lived extravagantly while their victims believed they were profiting from the crypto boom.

Second Phase of the Scam: Fake "Federal Crypto Reserve"
For victims who had already lost money, the scammers offered a second chance—via a fictitious entity called the Federal Crypto Reserve, claiming to help recover stolen funds. In reality, they charged new fees under the pretext of “investigations,” further exploiting their victims.
Experts describe this tactic as an extreme form of secondary victimization, preying on people’s desperation and shame after being defrauded.
“Hope of recovering funds and guilt over their mistake makes victims extremely vulnerable,” said Karan Pujara, founder of ScamBuzzer. He warned that crypto recovery scams are becoming increasingly common and urged victims not to respond or engage at all.

Critical Advice for Investors
Pujara also cautioned investors to be wary of crypto services promising AI trading:
“If the returns they promise seem too good to be true, it’s likely a scam. If someone really had a profitable algorithm, they wouldn't sell it for a few hundred dollars.”
Mazzotta has pleaded guilty to money laundering and obstruction of justice. He is scheduled to be sentenced on December 15.

Rising Wave of Crypto Scams
This case is part of a growing trend. Just last week, a Colorado pastor and his wife were indicted by a Denver grand jury for allegedly running a $3.4 million crypto fraud through their online church, selling a worthless cryptocurrency called INDXcoin under the guise of “divine guidance.”

#CryptoFraud , #CryptoSecurity , #Cryptoscam , #CryptoNewss , #CryptoCommunity

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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.“

Too many people fall for NFT scams because they ignore the warning signs. Trees *** NFT is a textbook case of a high-risk, shady project. Here’s what we found:

🚨 What We Discovered:
🔸 Fake Social Proof – Their Twitter & Discord are filled with bots.
🔸 No Clear Team Identity – Who’s behind this project? Nobody knows.
🔸 No Business Registration – Not listed anywhere. No legal accountability.
🔸 Too Many Investor Complaints – Early buyers report issues with withdrawals.

💡 RULE #1 in NFT Investing: If a project hides behind anonymity, fake engagement, and zero transparency, it’s a HUGE RED FLAG.

🚀 Good NFTs have real teams, strong communities & long-term vision. Scams rely on hype, deception & exit plans.

✅ DYOR (Do Your Own Research) before jumping into any project!

#NFTScamAlert #NFTSecurity #CryptoFraud #DoYourResearch