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September 13, 2023

Crypto Scams Persist on Social Media: Elon Musk's Twitter Woes Continue

Latest GBTC Deception, Scammers feigned association with Grayscale Bitcoin Trust

In the world of cryptocurrency, a persistent battle against scams rages on social media, even under the watchful eye of tech magnate Elon Musk. As we approach the 10-month mark of Musk's tenure, crypto scams on the platform, now known as X, remain stubbornly prevalent.

One of the more audacious recent scams centered around a counterfeit 'GBTC' token giveaway. Fraudsters cleverly exploited the Grayscale Bitcoin Trust, the world's largest Bitcoin fund, by appropriating its GBTC ticker for a fictitious $25 million token distribution.

To lure unsuspecting victims, the scam post directed readers to a website strikingly similar to Grayscale's official site. The deceptive scheme was propagated by the account @Grayscale_FND, which mimicked the real company's name and profile, though it had no connection to the actual fund.

While the post has since been removed, it managed to amass up to 1,500 likes before its demise. Scammers frequently disable replies to their posts, a tactic aimed at preventing the community from alerting potential victims.

Compounding the deception is the imposter account's blue checkmark, a symbol of an account's premium status on X. Traditionally reserved for celebrities, influencers, and recognized organizations, these checkmarks served to distinguish genuine accounts from imposters.

However, since Musk's takeover, the criteria for obtaining this badge shifted. Now, anyone can secure it for a mere $8 per month, inadvertently opening the door for scammers seeking to convincingly mimic legitimate entities. Musk pledged to tackle spam bots when he acquired Twitter, but challenges persist within the crypto realm.

Distinguishing authentic accounts from deceptive ones remains possible. Grayscale's official account, @Grayscale, boasts a distinctive gold verification badge, a symbol of verified businesses and a costlier distinction than the premium badge.

Additionally, a glance at the phony account's posts reveals a plethora of retweets from Grayscale's genuine account. A retweeted post is visibly marked at the top of one's account feed.

The allure of targeting Grayscale in scams is apparent, particularly after the company's recent legal triumph against the Securities and Exchange Commission (SEC). Following this victory, the discount of GBTC shares compared to the fund's underlying Bitcoin value has notably diminished from 25% to 17%.

As crypto scams persist, the crypto community remains vigilant, emphasizing the importance of discernment and verification when engaging with digital assets online. Despite the challenges, the battle against scams continues in the ever-evolving landscape of cryptocurrency.

Josefina Dipaolo
Josefina Dipaolo
Content Writer at TechNews180
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