According to a report by SpaceX and crypto exchange BitOK, the scammers successfully raised $165,000 in cryptocurrency donations by leveraging deepfake livestream videos on YouTube, which falsely promised users a chance to participate in crypto giveaways.
The fraudulent scheme operated by displaying QR codes in the videos, redirecting users to a website that prompted them to send crypto to specific addresses in order to participate.
After users transferred their crypto funds, the website claimed that the amounts would be reimbursed to their wallets along with a 200% bonus. However, the funds were instead moved to various addresses before being deposited into the KuCoin exchange.
The scam YouTube streams were broadcasted on a channel with 180,000 subscribers that impersonated official SpaceX content. As a result, all the videos have been taken down.
This incident is the most recent example of crypto fraud, which continues to occur during the bear market of 2023. These evolving criminal tactics underline the importance of raising consumer awareness about scams as crypto adoption continues to grow.
