Cryptocurrency scams on social media platform X, owned by Elon Musk, have raised concerns for Binance co-founder Yi He. She shared her worries about the proliferation of scams on the platform, particularly impersonation scams that directed users to click on links promising access to Binance-backed memecoins. Yi He clarified that these coins were not issued by her and warned users that clicking on the link could result in financial loss. She called on Elon Musk to take action to address the issue and prevent further scams.
The prevalence of cryptocurrency scams on X has been a growing concern, with analysts attributing a significant portion of all crypto scams to scammers on the platform. According to a report by Scam Sniffer, nearly $50 million is lost each month due to account impersonation on X.com. The confusion surrounding Elon Musk’s controversial paid verification service on the platform may contribute to the vulnerability of the general public to impersonation scams. It remains unclear whether Musk has specifically addressed cryptocurrency scams on the platform, despite indicating his intention to address other issues such as “bot” and “spam” problems.
In recent months, several X accounts of major companies and crypto influencers have fallen victim to scams designed to lure more customers into fake promotions. The US regulator SEC’s X account was hacked in January to issue a fake announcement regarding Bitcoin ETF approvals. Similarly, accounts for companies such as Netgear and Hyundai MEA were targeted by crypto scammers pushing scams designed to infect potential victims with cryptocurrency wallet drainer malware. The security breaches were often attributed to SIM-swapping attacks, emphasizing the need for increased security measures to protect accounts from hacking.
One of the notable incidents of a cryptocurrency scam on X occurred when cryptocurrency data aggregator CoinGecko experienced a security breach in January. Their account fell victim to a phishing attack where hackers posted a fraudulent post promoting a new cryptocurrency called GCKO and falsely informing users of a token airdrop. The post claimed that GCKO could be used to pay for API services like the cryptocurrency ANKR, leading users to potential financial loss. These incidents further underscore the need for increased vigilance and measures to combat cryptocurrency scams on the platform.
Despite the growing concerns surrounding cryptocurrency scams on X, particularly impersonation scams that lead to financial loss for users, there has been no specific response from Elon Musk addressing these issues. While Musk has indicated his intention to address other platform issues such as “bot” and “spam” problems, there is a lack of clarity regarding the measures being taken to combat cryptocurrency scams. Given the increasing sophistication of scammers targeting X accounts of major companies and crypto influencers, it is crucial for proactive steps to be taken to enhance security and protect users from falling victim to such scams. The incidents of security breaches and phishing attacks on prominent X accounts highlight the urgent need for robust security measures to prevent further financial losses and protect the credibility of the platform.
