Elon Musk has stolen at least $ 2 million from investors in cryptocurrency scams in the past six months, according to the Federal Trade Commission, CNBC reports.
The theft took place in a scam in which scammers pose in celebrities or personalities known in the world of cryptocurrencies. They promise to “multiply” the cryptocurrencies sent by investors, but instead they also appropriate them, informs News.ro.
Cryptocurrency scams have multiplied since October last year, reaching the highest level ever recorded in the first quarter, according to data released Monday by the FTC.
The period coincides with the sharp rise in the price of bitcoin and other popular digital currencies.
Bitcoin was quoted on March 31 at over $ 59,000, a price 450% higher than the level of 10,710 reached at the close of trading on September 30.
Musk, the CEO of Tesla, is a big supporter of cryptocurrencies. In a statement to the US Securities and Exchange Commission in February, Tesla revealed that it had bought $ 1.5 billion worth of bitcoin.
In March, Musk said Tesla would accept bitcoin for vehicle purchases. (Since then, he has given back due to environmental concerns).
Musk’s SpaceX company also recently announced that it will accept dogecoin as a full payment for a flight to the moon in the first quarter of next year. He also referred to himself as a “dogefather.”
The rise of Bitcoin could have attracted new for-profit investors – who have fallen into the hands of scammers, especially since crypto is a territory unknown to many investors, according to the FTC.
Nearly 7,000 people reported investing in counterfeit cryptocurrencies from October to March and lost a total of more than $ 80 million, according to the FTC. These are about 12 times the number of reports and with almost 1,000% more reported losses than in the same period a year earlier, the agency said. The actual figures may be much higher, as the data only reflects the scams reported by consumers.
The typical person reported a loss of $ 1,900. Young investors (those between the ages of 20 and 49) have been more than five times more likely to report losing money from cryptocurrency investment scams, according to the FTC.
It’s not the first time Musk’s name has been exploited by crooks. In 2020, crypto scammers targeted Twitter and took over high-profile social network accounts, including that of Elon Musk.
As previously reported by CNBC, scammers have earned at least $ 121,000 in bitcoin from their hacking efforts.
Crypto crooks don’t just take on Musk’s identity to deceive their victims. They often imitate a government authority or a well-known business. Many investors have reported charging cash at bitcoin ATMs to pay imposters who claim they come from the Social Security Administration, according to the FTC.
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