Neeraj Khandelwal Warns: Beware of the Viral Seed Phrase Crypto Scam
A New Threat Emerges
Neeraj Khandelwal, co-founder of CoinDCX and Okto, has raised alarm over a fast-spreading crypto scam that preys on unsuspecting users through seed phrase baiting. The scam, circulating on YouTube and Reddit, lures victims with the illusion of easy crypto gains—only to rob them within seconds.
How the Scam Works
Scammers post a fake wallet's seed phrase online, pretending to be beginners who “accidentally” shared it. When a user imports this seed into their wallet app, it appears to contain funds like USDT. However, it lacks native tokens (like ETH or TRX) needed to move the funds. Victims are tempted to deposit these tokens to cover gas fees, thinking they’ve stumbled upon a forgotten wallet.
But it’s a trap. Once gas tokens are added, bots controlled by scammers instantly sweep the funds, leaving the user with nothing. In advanced setups, multi-signature wallets are used, where the scammer holds a second key, blocking all outgoing transactions.
Red Flags to Watch For
Publicly shared seed phrases — no legitimate user does this.
Wallets with funds but no gas tokens — a classic bait setup.
Requests from “newbies” asking for help — often social engineering in disguise.
Too-good-to-be-true offers — usually are.
How to Stay Safe
Never import someone else's seed phrase.
Only use wallets you create yourself.
Never share your private keys or seed phrase.
Avoid funding wallets you don't fully control.
Be cautious on social platforms like Reddit, Discord, and Telegram.
Final Advice
In crypto, security starts with awareness. Scammers rely on curiosity and greed. Protect your assets by staying informed, skeptical, and alert.
Thankyou
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