Binance co-founder says fake crypto news on Elon Musk’s X caused users to lose significant amounts of money
Crypto scams are on the rise, something we are seeing. But, who is to blame for it? Binance co-founder says fake crypto news on Elon Musk’s X (formerly Twitter) has caused users to lose a significant amount of money. Here’s everything to know.
Binance co-founder Yi He called on Elon Musk to address the rampant dissemination of fake crypto news on X (formerly Twitter). This comes after she fell victim to an impersonation scam in which her identity was used to promote a bogus crypto token.
He took to X to denounce the promotion of a fake cryptocurrency that was falsely attributed to him. He clarified in his post, “I have not issued any token called Memecoin.” He urged his followers and the wider Binance community to stay away from this scam and avoid any investment in this deceptive token.
Highlighting the severity of the issue, he shared screenshots showing how his name and crypto handle were being misused by scammers. “Many people got cheated by this hacker link and lost a lot of money today. Is there any way to solve this problem, Elon Musk?” he asked, directly tagging X owner Musk.
Despite Musk’s usual readiness to address such concerns, he has remained silent on the issue until now. This lack of response is particularly notable since Musk has previously made a commitment to making X a safe space for crypto discussions.
In March, Scam Sniffer, a leading security firm, reported that crypto phishing scams have led to considerable financial losses. According to their report, about 57,000 victims collectively lost about $47 million (roughly Rs. 392 crores) to such scams, a large portion of which was facilitated through X.
When Musk acquired X from Jack Dorsey in April 2022, he highlighted that one of his top priorities was to purge the platform of crypto-related scams and manipulative bots. However, despite implementing numerous changes, the continuation of these scams suggests that more needs to be done.
The issue of crypto scams is not limited to crypto. Recently, the United States Federal Trade Commission (FTC) issued a warning about the rise of “crypto romance” scams. The FTC highlighted how scammers often build emotional connections with their victims, posing as experts on cryptocurrencies to gain trust and defraud them.
“No one expects their online lover to cheat on them, but scammers are experts at what they do. They establish an emotional connection with you, so you’re more likely to believe that they are experts in cryptocurrency investing,” the FTC said in a June 10 blog post.
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