Fake Exchange Scam: A Victim’s Narrow Escape with the Aid of Crypto HK’s Expert

At noon today, a middle-aged man, referred to as Mr. Yip (pseudonym), visited Crypto HK’s Admiralty branch. Mr. Yip had previously followed advice from an acquaintance on social media and transferred 10,000 USDT from his Trust Wallet to a supposed trading platform. To test the platform’s legitimacy, Mr. Yip successfully withdrew his 10,000 USDT back to his Trust Wallet. However, before reinvesting, cautious Mr. Yip grew suspicious of potential fraud and sought assistance at Crypto HK.

Coincidentally, Crypto HK’s Managing Director, Mr. George Yim, was present at the time. After reviewing Mr. Yip’s situation, expert determined that the platform is a scam. We share the following details to raise awareness among our readers. Mr. Yip presented a webpage that fraudsters used to impersonate the Anchorage trading platform. However, the URL displayed in the browser’s address bar was “anchoragee,” with an extra “e” compared to the legitimate URL.

To further verify the platform’s authenticity, our experts traced the scam’s footprint using Mr. Yip’s on-chain address. The investigation revealed that the fraudsters used a specific on-chain address (referred to as the “fAUX address”) to receive Mr. Yip’s funds, while withdrawals were sent from another address (referred to as the “vAsD address”). Analysis showed the fAUX address was created on April 20 and had received nine transactions ranging from $1,280 to $45,000, likely from other victims. The vAsD address, created on May 5, had processed over a thousand transactions in just five days, including complex transactions, indicating it was likely a transfer hub for the scammers. Such address and transaction patterns are inconsistent with legitimate trading platforms anyway.

Based on these findings, our expert concluded that this was a fraudulent platform operated by scammers. The fraudsters had returned Mr. Yip’s funds to lower his guard, fostering trust in the platform and potentially encouraging larger investments. Upon hearing our analysis, Mr. Yip realized the situation and was relieved to have consulted professionals before reinvesting. The scammers’ greed, aiming to extract more funds, literally gave Mr. Yip the opportunity to escape losses.

This incident serves as a critical lesson for cryptocurrency newcomers. While such scams mimicking crypto platforms are similar in principle to traditional frauds involving fake bank websites or online shopping platforms, the relatively new and unfamiliar nature of the cryptocurrency industry makes the public more vulnerable. Investors should conduct thorough research and opt for well-established, high-liquidity, and reputable overseas exchanges when trading.

We hope all newcomers can safely navigate the cryptocurrency wave and achieve their financial goals.

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