How Users Lost $1.8M to Crypto Influencers in 1 Week

Users are still falling into crypto influencers’ traps which made millions off of their FOMO.

Woman looking angry whilst a crypto influencer smiling behind her with a bunch of cash in his hand.
Created by Gabor Kovacs from DailyCoin
  • Crypto scams are on the rise. 
  • Crypto influencers are using their influence to entice users into investing in scams. 
  • One influencer offered nothing, and another promised unrealistic returns, but both influencers still made a significant amount. 

Crypto influencer scams are once again plaguing the cryptosphere. In another questionable episode, two crypto influencers bagged over $1.8 million in a week by blatantly exploiting users’ unwavering FOMO. 

This is how they did it. 

By Offering Nothing 

On May 30, Crypto influencer Pauly0x, founder of NotLarvaLabs, struck gold after sharing his Ethereum address and domain on Twitter, asking users to send ETH in return for nothing. 

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While the influencer explicitly stated he would be offering nothing in exchange, his history and reputation in shilling memecoins in the crypto circle led users to decipher the situation differently. 

Within seven minutes, users sent $76 worth of ETH to the address. This led to other users following suit, with some even sending NFTs, helping the influencers bag over $1.5 million in two days. 

Evidently, many users FOMOd into sending the influencer their assets, expecting some airdrop reward despite him stating they would get “nothing.” Users probably thought they’d get a token named “NOTHING” from the influencer. 

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Still, despite no clarification except silent Twitter spaces titled “NOTHING,” users continued to send their money to Pauly0x’s address. 

At press time, Pauly0x’s ETH domain has been updated. The website now features a man wearing Apple’s new VR headset with a text message notification from the influencer saying “Maybe” and a “Claim” button. 

Although Pauly0x offered nothing and still made millions, another scammer impersonating a crypto influencer rugged users of their money. 

By Offering Something

On May 30, A scammer impersonating legendary anonymous MEV bot trader “Jaredfromsubway.eth” announced releasing a token that would share profits made by his bot. 

Given the MEV bot trader’s iconic status and proof of generating over $1 million in profits daily using “sandwich attacks,” users’ excitement came in the way of assessing the situation, leading to another unfortunate text-book rug pull

For days, the scammer promoted his pre-sale on Twitter, enticing users with extravagant profit claims. They urged investors to send ETH, promising unrealistic returns of up to 2 ETH or over $3600 a week for a mere 1 ETH or $1800 investment. Still, despite the dubious nature of these promises, FOMO drove many to participate in the scam

Tragically, users fell victim to the scam, losing 270 ETH or approximately $500,000. The impersonator has since deactivated his account and fled. 

Interestingly, many ‘JaredFromSubway’ fake accounts still promote unreasonable returns, highlighting the need to stay safe and set up necessary measures. 

How to Stay Safe

Hackers and scammers are still swarming the cryptocurrency sector, this time with sophisticated tools and more determination. As the cryptocurrency market prepares for a potential bull run, it’s more than necessary to perform due diligence and protect yourself from malicious attempts. 

Interestingly, this isn’t the first time crypto influencers have FOMOd users into scams.

 Here are some tips on how to stay safe: 

  • Keep your wallet seed phrase private from everyone on the internet. 
  • Always do your own research and refrain from FOMO-ing into projects and scams
  • Double-check links and websites. Look for links that are hypertext, check slugs, and inspect buttons. 
  • Check other social media channels to ensure the news is real. 
  • Verify and scan all addresses, such as contract, sender, and others, before doing anything permanent. 
  • Ask for help from officials, and prioritize your safety and security. 

On the Flipside

Why This Matters

Despite the lingering threat of hackers and scammers using more sophisticated methods to relinquish users’ funds, many are still mindlessly trusting people on the internet in an attempt to get rich quickly.

Read about Rug pulls: 

Another Rug Pull? Ben.ETH-Linked Token Drained of $100K

Read how hackers impersonated Charles Hoskinson

Cardano Founder Charles Hoskinson Alerts Community of AI Scams

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Insha Zia

Insha Zia is a senior journalist at DailyCoin covering crypto developments, especially in the Cardano ecosystem. With a Bachelor of Science in Computer Systems Engineering, he delivers high-quality articles with his technical background and expertise in data analysis and programming languages, aiming to educate and inform readers accurately, transparently, and engagingly. Insha believes education can drive mass adoption of the crypto space, and he is committed to giving DailyCoin readers a better understanding of the technology.