Crypto Hack: 250 UK Victims Fall For Fake Bybit Demo Account Scam

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As a seasoned analyst with over two decades of experience in the digital asset space, I have witnessed the evolution of cryptocurrencies from a niche interest to a global phenomenon. However, it seems that as the industry grows, so does the number of scams and hacks targeting unsuspecting investors.

Over the past few months, a significant cryptocurrency heist has occurred in the UK, impacting over 250 individuals and resulting in the theft of approximately $650,000. The criminals lured their victims using false Bybit demo accounts, leading them into a scam that promised easy money. The mastermind behind this fraud, referred to as “Ape 31,” has been continuously changing deposit addresses, making it challenging to recover the stolen funds.

250 UK Victims Fall for Fake Bybit Demo Account

ZachXBT, a seasoned blockchain analyst, has disclosed findings on a cryptocurrency scam by examining 16 deposit addresses associated with the deception, which were linked to the fraud. Over the course of a year, these addresses received funds from more than 250 unsuspecting victims, accumulating approximately $650,000. The victims were misled into believing they were trading through legitimate Bybit demo accounts, but in reality, they had fallen prey to a sophisticated fraudulent scheme.

In this crypto heist, a significant issue arises due to Ape 31 frequently changing deposit addresses. This makes it challenging to calculate the full extent of the operation’s scale. As per ZachXBT, the total amount of stolen funds could be greater than initially thought because the scammer is attempting to evade detection. He has alerted the police about this finding, hoping to track Ape 31’s movements and halt any further damage.

1/ Over the past year, a fraudster operating under the handles @ape_31 and @60711 based in the UK has swindled over $650,000 from more than 250 users of platform X. This individual tricked victims by posting phony profit-and-loss statements from a Bybit demo account, then ran a news account to guide unsuspecting users into signing up for paid services. Once they made payments, the scammer would block these users.

— ZachXBT (@zachxbt) September 30, 2024

Apart from using a false Bybit demonstration account, Ape 31 additionally attempted an under-the-table cryptocurrency transaction (OTC). This fraudster lured a prospective mark into a video conversation under the pretext of needing to conclude a genuine business negotiation.

Nevertheless, the conversation was taped, subsequently made public, and it led to more victims recognizing the voice as belonging to Ape 31. As a blockchain specialist stated, this recording is associated with Ape 31 and multiple instances of fraud, such as the original crypto heist among others.

Wider Crypto Hack Trends: BingX and Banana Gun Incidents

A scam warning about demo accounts on Bybit, flagged by a blockchain specialist, is part of an escalating trend of crypto heists within the industry. For instance, BingX exchange experienced a significant breach that led to more than $43 million worth of altcoins being stolen. The perpetrator then changed the stolen cryptocurrency into Ethereum (ETH) and Binance Coin (BNB), making it challenging to recover the assets. This hack on BingX is one of the most significant in recent memory.

Likewise, just as the Banana Gun protocol suffered a hack resulting in the theft of $3 million, it’s important to note that the Banana Gun team has pledged to reimburse each of the 11 impacted users from their own treasury.

These occurrences highlight the escalating risk of cyberattacks on cryptocurrency systems, with both centralized and decentralized platforms under siege. As per Immunefi’s statistics, a staggering $409 million was lost due to hacking incidents within just the third quarter of 2024.

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2024-10-01 00:44