The cool side of the blazing crypto ecosystem.
A Crypto newsletter covering the latest Hacks & Crime to keep you safe.

What’s in today’s crime cooler:

• Summary of What Happened

• What is the Impact on Users, Businesses, and Funds

• How to be More Secure in the Future

• Final Thoughts

A man just outside of Minneapolis, Minnesota, whose name was undisclosed, lost $9.2 million in a crypto romance fraud.

Local police have never investigated and heard of such a scam with so much money involved. I wonder why…

It all started when a man was messaging a mysterious woman on LinkedIn that encouraged him to invest in a project called “Coinrule-web3”. The “woman” ensured if the man invested in this we would become rich in a short period of time and the new funds can help him abandon his wife and run off with his new “lover”.

From these promises, the man contributed $9.2 million in 6 months with 21 transactions.

The man’s wife was mainly kept in the dark until she assumed something was wrong. Then notified the police that her husband was liquidating their investment accounts “in a panic” to pay these funds to the scammer and their platform. When agents began to investigate they immediately found that “Coinrule-web3” was tied to many other romance scams.

Investigators also discovered the mysterious woman took the money and transferred it into an encrypted crypto wallet that no one except the scammer has access to.

Police do not know if they can reveal the scammer and if punishments can be made.

This type of scam and fraud has been around for many years. It’s a small category in the scammer world where love or lust is apart of the equation which can swipe a victim off of their feet.

Just from 2022 alone romance scams reach a $1.3 billion industry. The average loss being $4,400. The scammers mainly prey on elderly, people that are desperate, or encourage some financial need or profit.

Crypto is now becoming the leading source for these scammers because they have the chance to get away with the funds and still be anonymous. Although the blockchain is public to anyone, users can create multiple wallets and also send funds to a crypto mixer which mixes true and fraud funds.

Not much to be said on being more secure with a pretty obvious scam, but we all fall for something eventually.

This user had many reasons to believe this wasn’t right.

• First off, anytime someone on the internet, especially if you don’t even know the person, tries to convince you to buy something or invest in something is not the best option. These are clear scams and ways for people to manipulate you.

• Next, by looking around and doing a bit of research on “Coinrule-Web3”. The website isnt the best and not all things are working. The 3rd link that comes up is “ScamWatcher” which isnt a good sign, this also could be inflated since news articles and others were talking about them.

  

• Lastly, draining your savings account and not telling your wife/family about it? Common sense is not so common sometimes…. This is a given, investments clearly are not guaranteed by any means but allocating that much is plain stupid.

Our Finals Thoughts on this scam, it could have been completely avoided. We don’t know the financial situation of the man, but hopefully he has a lot more than the $9.2 million that he basically pawned off. It goes to show anyone is vulnerable and if the scammer knows the right situation they can manipulate you and take advantage at any moment.

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Disclaimer: The information shared in this newsletter is for informational purposes only and should not be considered financial advice. It is crucial to conduct independent research and consult with a financial advisor before making any investment decisions.