Crypto Scams: A Growing Threat in the Cryptocurrency World
As the realm of cryptocurrency continues to expand, so do the threats associated with it. Crypto scams are becoming increasingly prevalent and sophisticated, causing significant financial losses to unsuspecting users. Even those well-versed in technology can fall prey to these malicious schemes.
Coinbase Scams Targeting Vulnerable Individuals
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Renowned investigator ZachXBT has uncovered a fraudulent scheme allegedly orchestrated by Christian ‘DayTwo’ Nieves. The scam involved impersonating a customer support agent for Coinbase, resulting in over $4 million being stolen from users of the platform.
According to the investigation, the illicitly acquired funds were used to purchase luxury items and were largely squandered through online gambling at casinos.
The Modus Operandi of DayTwo’s Scams
DayTwo’s operation involved a call center setup where he directly interacted with crypto users, convincing them to install and configure a Coinbase wallet. Unfortunately, the private keys of these wallets were compromised, allowing the scammer and his associates to illicitly transfer and withdraw funds.
In one case, a $240,000 transaction was traced back to an elderly victim, highlighting the scale and impact of the fraud.
Evidence from a video recorded in November 2024 linked the stolen funds to a wallet involved in the scam. A portion of these funds was converted into Monero (XMR) and deposited into the online casino, Roobet.
Fraudulent Activities and Online Gambling
ZachXBT reported that DayTwo frequently engaged in gambling sessions on Discord, where he would share his online casino username, ‘pawsonhips.’ During one of these sessions, he inadvertently exposed one of the addresses associated with the scam.
The investigator stated:
“I traced his casino deposit address, which connects on-chain to over 30 suspected thefts. While multiple threat actors might be involved, the primary activities are linked to DayTwo.”
As DayTwo’s gambling losses mounted and the proceeds from scams dwindled, his deposits to Roobet decreased. Furthermore, DayTwo and his accomplices openly discussed their illicit activities in Discord calls. ZachXBT noted:
“It’s rare to see a social engineering scammer with such blatant disregard for concealing their identity while flaunting stolen funds on social media. Given that DayTwo is not a minor, law enforcement can easily pursue the case. Unfortunately, victims may recover only a small portion of their losses, as most funds were gambled away post-theft.”
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