The co-founder of Binance, Yi He, has expressed concerns about the increase in cryptocurrency scams on the social media platform X, owned by Elon Musk. She raised the alarm after noticing an impersonation scam on the platform where users were directed to click on a link promising access to Binance-backed memecoins, which did not exist. Yi He shared images of accounts that were imitating her handle and name, warning users that clicking on the link could result in the loss of funds. She called on Musk to take action to address the issue and prevent users from being deceived by such scams.
Cryptocurrency scams have been thriving on the X platform, with analysts attributing a significant portion of all crypto scams to scammers on the platform. Scam Sniffer, a web3 anti-scam company present on X, conducted an analysis revealing that nearly $50 million is lost each month due to account impersonation on the platform. While these problems existed before Elon Musk’s involvement in the platform, the controversial paid verification service introduced by Musk may contribute to the vulnerability of the general public to impersonation scams. Musk has mentioned addressing “bot” and “spam” issues but it is unclear whether he has specifically tackled cryptocurrency scams.
Since the beginning of 2024, several X accounts of major companies and crypto influencers have been hacked to promote scams. In January, the U.S. regulator SEC’s X account was hacked to issue a fake announcement of Bitcoin ETF approvals. The X safety team attributed the breach to a SIM-swapping attack linked to an official phone number of the @SECGov account. Similarly, accounts for companies like Netgear and Hyundai MEA were targeted by crypto scammers to promote scams designed to infect victims with cryptocurrency wallet drainer malware. CoinGecko also experienced a security breach on X due to a phishing attack, where a fraudulent post promoting a new cryptocurrency called GCKO was posted.
The confusion surrounding Elon Musk’s paid verification service on X may make it challenging for users to distinguish between genuine accounts and fraudulent ones. Although Musk has indicated his intention to address issues related to bots and spam on the platform, it remains unclear whether he has specifically targeted cryptocurrency scams. While the platform continues to be vulnerable to impersonation scams, Yi He’s call to action highlights the need for proactive measures to protect users from falling victim to such fraudulent schemes. Musk has not responded to Yi He’s concerns as of now, leaving the issue unresolved on the platform.
As cryptocurrency scams continue to increase on the X platform, users need to be vigilant and cautious when interacting with accounts to avoid falling prey to fraudulent schemes. The recent cases of hacked X accounts of major companies and influencers to promote scams highlight the importance of protecting personal information and being aware of potential risks. The involvement of scammers in pushing fake promotions and malware through hacked accounts underscores the need for enhanced security measures and awareness campaigns to educate users about the dangers of cryptocurrency scams. By addressing these issues and taking proactive steps to protect users, platforms like X can create a safer environment for crypto enthusiasts to engage and transact securely.
