With news of the Twitter hack fading into the distance, news is now emerging that quick thinking from big crypto exchanges prevented a much bigger scam from occurring.
According to a Forbes report, Coinbase blocked 1,100 clients from being scammed by the Twitter Hacker after the San Francisco-based exchange discovered what was happening and stepped in the way of over 30 BTC being sent to the scammers wallet.
Coinbase’s chief information officer Philip Martin said that staff at the exchange noticed the scam around the time when other crypto exchanges Binance and Gemini appeared to tweet the scam.
Coinbase immediately blacklisted the address, and the move saved many of the exchange’s users from being scammed, and as a result only 14 of its users were scammed of a total $3000.
The Twitter Hack
Last week social media platform Twitter was hacked, and many leading celebrities and politicians had their accounts compromised.
Jeff Bezos, Joe Biden, Bill Gates, Binance, Gemini, Coinbase, and many other accounts were used as part of a scam that tried to entice Bitcoin out of Twitter users.
The tweets that seemed to be from the verified blue-checked accounts used the same old scam that has been going around the crypto space for a while.
‘Everyone is asking me to give back, and now is the time. Send me some BTC and I will send you double back,’ was what the tweets were suggesting.
And as bad as the scams are, it’s hard to understand how anybody could fall for it. Surely most people in the crypto space know of the scams.
They’re everywhere on social media, and of course you might not expect jeff Bezos’ account to be hacked, but surely you shouldn’t expect him to make unbelievable offers, especially one that sounds just like the scams that have been going around for a couple of years.
It’s believed that the hackers enticed Twitter users into sending over $100,000 worth of Bitcoin, and with data coming from the big crypto exchanges, quick thinking from Coinbase and the other exchanges saved at least treble that amount.
Twitter was quick to block the accounts that were compromised and used as part of the scam, but of course some Bitcoin was still lost.
How Will The Hackers Use Their Bitcoin?
With everyone knowing which address the Bitcoin was sent to, and some exchanges going as far as blacklisting it, it should be asked whether the hackers can actually trade their Bitcoin for cash.
According to a report by CipherTrace, the twitter hacker moved funds to exchanges, peer-to-peer marketplaces, mixing services, and gambling sites at the weekend.
It’s believed some of the Bitcoin was even sent to Binance, but many believe the hacker is trolling because if they were to try and cash out they would give themselves away.
Some of the Bitcoin went to mixing wallet Wasabi, which uses TOR network.
It’s without question that some of the BTC will be lost forever, and we may never find out who the hacker is.
The Simple Rule of Thumb: Don’t Believe Anybody
With Bitcoin being pseudonymous, and with other ways of mixing cryptocurrencies, it’s awkward but not impossible for hackers to get away with their crime.
Bitcoin and the crypto markets have thrown up all sorts of scams. You see it every day on social media. But the fact is you can’t and shouldn’t believe anybody you don’t know and trust.
Even if they are offering to send something like a Bitcoin book they want reviewing for free, don’t download it because the file could contain malware, and it could compromise your holdings.
Not everybody is out to scam you. In fact most people aren’t, but those offering something (anything) are more than likely trying to scam you. Why else would they contact a stranger who they think has Bitcoin?
Author: Tommy Limpitlaw
How do you make money with Bitcoin?
There are many ways to make money with Bitcoin. The most obvious way is to mine Bitcoin. Bitcoin mining is the process of verifying transactions, and helping to secure the Bitcoin network. Bitcoin miners are rewarded with bitcoins for their work.
What is the point of Bitcoin?
Bitcoin is a decentralized money. A money that nobody can control or manipulate, and a money that nobody can print and devalue. It’s also not necessary for any third party to verify transactions, so it makes it much faster and cheaper to send value. It’s also money built on the Internet: a society of almost 5 billion people.
Can you buy less than 1 Bitcoin?
Yes. Every Bitcoin can broken down into 100 million bits. They are known as satoshis, after the pseudonymous creator Satoshi Nakamoto. And some companies will let you buy as little as $1 worth of Bitcoin, which at time of writing is worth about 11,000 satoshis.
How long does it take to mine 1 Bitcoin?
On average, the time it takes for miners to mine BTC is 10 minutes. But they don’t just mine 1 BTC. Mined Bitcoins are created with every new block and these produce the Bitcoin block reward which at the moment is 6.25 BTC, so you could say it takes less than 2 minutes to mine each Bitcoin.