TechForing Unravels the Biggest Crypto Scam in Cyberspace.

In recent times, the cryptocurrency market has exploded and many individuals became millionaires overnight and gave the impression of putting their hard-earned money in crypto to get rich quickly. But many people were deceived by cybercriminals and frauds after investing in fake crypto farms. Recently, we investigated such an incident of a crypto scam.

How Did The Problem Arise?

In May 2021, a client named Bob (alias) approached TechForing who invested over 3.6767 Bitcoin (BTC) equivalent to USD 128k in BinanceUS. One day he suspected that his Binance account might get hacked or someone is trying to do so. For the sake of his crypto investment, he deactivated the account.

A few days later he found out that the cryptocurrency where he has invested is galloping and thought that this might be a good opportunity for him to withdraw the Bitcoin. He tried to activate his account but failed to do so. As a last resort, Bob contacted BinanceUS support multiple times to re-activate his account but got no response. Then he started looking up on Twitter about BinanceUs and found the CEO of BinanceUS, named Catherine (@crypt0coley). Unfortunately, Bob contacted the imposter Catherine whose profile shows the exact name, details, and pictures of the real CEO of BinanceUS Catherine (@cryptocoley).

He mistakenly asked the imposter to help him, and the imposter took the chance by asking for information related to Bob’s account and assured him about the matter to be forwarded to the respected team. Meanwhile, the imposter gave a tempting accelerated investment offer in another platform named “nitrodex.co” to the client that within a few weeks any amount of investment would grow by 200%. At this point, the client tried to verify whether he is communicating with the real CEO of BinanceUS or someone else who is pretending to be the CEO and asked for proof. The imposter provided the driving license of the real CEO which convinced the client enough to proceed with the offer.

After a length of the conversation, the imposter suddenly requested to take the communication to Telegram from Twitter where the imposter referred the client to Tad Wilton who pretended to be a technical guy related to accounts and finance and also a member of Nitrodex.

Wilton gathered all of the ticket IDs between the client (Bob) and BinanceUS that were previously given BinanceUS support by the client and advised the client to transfer 3.24785749 BTC ($112,602.31) and 0.42886322 BTC ($14,868.57) so that he can continue investing on behalf of the client. Bob transferred the requested amount to Wilton to the following wallet address:

  • 1NYgbCWK3BGFEKdystj7K5LcstpAxiKEW3 
  • 18bZoEom8rjcmBmGgRZxbPQsDEmXG48CmQ

After each trade Wilton started sharing results with the client as proof of investment. The client thought his money had been invested in good hands and the amount will grow.

After two transactions, the client invested more BTC through Wilton but unfortunately from that point, the client didn’t hear a word from Wilton. Finding no way of communication with Wilton, the client contacted the fake CEO again. Bob asked the fake CEO to return his investment but the imposter denied any kind of involvement regarding the issue and threatened the client that if he tries to do anything about it then his life, as well as his family’s safety, will be endangered.

Action:

Bob communicated with various cybersecurity firms. But he couldn’t find any solution. So he contacted the TechForing team. TechForing stepped in to investigate the matter and quickly found out Nitrodex is a scam website and they have been fooling people for more than a year. TechForing has identified the culprits through state art of digital forensic analysis on blockchain and wallet addresses.

TechForing also tried to contact the real CEO of BinanceUS to confirm if BinanceUS has taken any step towards securing their C-Suite executive’s identity but BinanceUS hasn’t responded to any inquiries. At this moment, TechForing has teamed up with the FBI (IC3 Department) to recover the lost fund from scammers.

The Outcome:

TechForing not only retrieved the crypto asset of Bob but also with his permission, contacted the law enforcement agency to ensure legal justice for the scammer. However, the scam platform Nitrodex site and other members of scammer are still active as of today. So it is highly recommended to avoid such platforms.

Prevention is Better Than Cure: A message from our CEO:

TechForing’s CEO & Managing Director Rabiul Islam recommends all crypto traders out there, “Cryptocurrency might have opened new doors to become rich quickly but there is no company that can double your investment overnight. Please be careful with your investment and stay away from such lucrative offers”.


Need help to recover or secure your crypto assets? Feel free to schedule a call here