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Did WallStreetBets Members Lose $2M to a Cryptocurrency Scam?

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Published on:
May 5, 2021

Victims were given the chance to snap up a fake token called WSB Finance... but never ended up receiving it.

Did WallStreetBets Members Lose $2M to a Cryptocurrency Scam?

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Members of the renowned WallStreetBets group on Reddit may have lost at least $2 million in a cryptocurrency scam, according to Bloomberg.

 

A Telegram group called “WallStreetBets – Crypto Pumps” had given members a chance to snap up a new token that was called WSB Finance.

 

They were promised to get early access before this cryptocurrency was listed on major exchanges.

 

Anyone who was interested in getting in on the ground floor was told to send Ether or Binance Coin to a specified address — and then contact a “token bot” to receive their coins.

 

Unfortunately, you can probably imagine what happened next. The coins were never delivered — and victims subsequently ended up receiving another message from the bot, telling them to send the same amount of crypto again or their initial investment would be lost.

 

A Big Scam 

Reports suggest that 3,451 BNB has now been withdrawn from the wallet that was linked with the scam. At the time of writing, this would have been worth more than $2.2 million — and all of this doesn’t even take into account the ETH that may have been transferred to these opportunists.

 

The sorry saga helps illustrate the importance of performing due diligence on investment opportunities.

 

It can be all too easy to be drawn into backing certain altcoins, not least considering so many are posting quadruple-digit gains in a matter of days.

 

But given this space is unregulated, and transactions can be completed with a high degree of anonymity, there can be little recourse for victims if they fall victim to a scam.

Author(s)

Connor Sephton

I cover the crazy world of crypto.

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