The famous Reddit forum known as the Wallstreetbets has made it to the headlines, but this time not for the endorsement of stocks or digital assets. Reportedly, some members of the forum fell victim to a $2 million fraud related to cryptocurrencies.
Per a new report by the famous financial publications Bloomberg, a bogus group on the social media app Telegram named Wallstreetbets – Crypto Pumps – had been offering a digital token known as WSB Finance, which the group claims to have been designed by an imaginary WSB team – which experts suggest is not true.
Not only that, but the report suggested that fraudsters had told investors that they could get the token before its listing on several trading platforms. The people willing to invest their money into it were required to send the second most famous crypto-asset Ethereum or Binance’s token BNB to a digital wallet.
Later, they were told to get in touch with a bot to claim their tokens. But sometime down the lane, things turned shady when people came out reporting a problem with the bot system. Interestingly, it did not end there; if the investors wanted to save their investment, the victims must arrange for the same amount of tokens.
This comes as the world’s biggest crypto exchange’s token BNB has surged to new heights. According to the data provided by Bitcoin.com, more than 3,450 Binance tokens have been recovered from the digital wallet used by the scammers. Reportedly, the Telegram group has also been taken down, with victims losing millions of dollars.
Earlier, the famous Reddit forum had warned its users about a group of scammers using their name to advertise and market fraudulent products. Besides that, the moderators had also banned the discussion on Dogecoin, Bitcoin, and Ethereum, citing a Bloomberg article about them which the WSB declared as “dumb.”