Cryptocurrency scam: Investors lost $2 million in crypto by Elon Musk Impostors


TL;DR Breakdown

• Cryptocurrency scams continue alongside Musk’s speculation.
• The Federal Trade Commission says scams are up 1000%.

The proposal was very tempting, investors were attracted to Elon Musk and his program, but it ended up being a sinister scam. The founder of SpaceX and Tesla CEO, Elon Musk, has become the spotlight for cryptocurrency scams.

Traders who took “Musk’s word” lost about $2 million in 6 months. A proposal supposedly on behalf of Musk made its way through the emails of many crypto investors and made them eventually lose their money. As reported by the federal trade commission, cryptocurrency scams have increased exponentially in recent months.

Cryptocurrency scam and the number of investors affected

The commission found that at least 7,000 investors lost $80 billion since October last year. This figure has increased due to the rise in prices of Bitcoin and other popular cryptocurrencies. Dogecoin is also not spared from these sinister acts, with scammers using Musk’s image to act.

Cryptocurrency scams have increased 1000% in 2021 compared to last year. These problems are increased by Musk’s speculations on Twitter affecting the value and popularity of both BTC and DOGE. According to the federal trade commission, scammers profit from people’s inexperience in cryptocurrencies.

It’s not entirely clear how many people have been scammed by Musk copycats, but the loss in value is definitely high. The commission also did not say whether the scammers used a famous exchange platform or a covert one. These actions bring discontent to the crypto investor community and Musk as his image is being used to perpetrate these scams.

What does Musk think of cryptocurrency scams?

Musk’s lawyers have not commented on the news so far. It is a malicious level of scam that new investors should avoid, so they don’t lose their money.

Tesla had previously bought $1.5 billion worth of Bitcoin. With this purchase, the token soared, and cryptocurrency scams became more profound on the internet. Bitcoin became both the highest-cap coin and the most famous one because Musk trusted it.

Another announcement that triggered the Bitcoin price was when Musk said that he would accept the cryptocurrency as a payment method at Tesla. This new action by Musk increased the value of the cryptocurrency and gave a new landscape for decentralized investments. This news gave cryptocurrency scams room to take advantage of Musk’s image and ensnare investors.

Scams also fell when the price of Bitcoin plummeted with Musk’s latest announcement. The Tesla CEO canceled payments in Bitcoin until further notice because the cryptocurrency was not ecologically friendly enough. This latest tweet from Musk caused the cryptocurrency’s value to drop below $43,000, although it is currently on the mend to recover its all-time high values.

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