How this man lost $500,000 in a crypto scam

Within the crypto world there are numerous ways investors are scammed to this day. Not only is it hurting the overall industry, but many people are seeing their hard-earned savings go up in smoke this way.

Victims of crypto scams in 2022

Recently you could read in the altcoin news that a large part of all scams consist of so-called phishing scams and back pulls. You could also read earlier that no less than 117,629 new scam tokens will have appeared on the market in 2022. These scam tokens are in most cases used as a back pull or as honey pot.

By 2022, even more crypto investors would have lost money to scams than the mass demise of crypto-related companies and projects. The past year was mainly dominated by the decline of the Terra ecosystem (LUNA), Three Arrows Capital, Celsius, Voyager and FTX.

Crypto scam on YouTube

The Canadian Stephen Carr has in a recent interview indicated that he has lost all his savings, a total of almost $500,000, due to a crypto scam on YouTube. It’s not the first time YouTube has been used for this purpose. Some scammers have even uploaded fake recordings in the past of celebrities like Elon Musk, Bill Gates, and Kanye West appearing to promote dubious crypto projects.

The culprits promised all viewers on YouTube that they could make significant profits if they invested in their project. The Canadian initially found nothing suspicious and contacted the people. He started with an investment of $250 and soon increased the investment by $2,500.

His confidence in the project was boosted after he was able to immediately withdraw $1,000. For that reason, Carr decided to invest nearly $500,000 in the project between October 2022 and January 2023.

His first doubts surfaced when he wanted to cash out a portion. He saw the total value rise to $1.3 million, but he was forced to buy a fairy of $150,000 to be able to withdraw money. The fraud has forced him to put his house up for sale so that he can reorganize his life.

An important rule of thumb that certainly applies in crypto is: If something seems too good to be true, it probably is.

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