Crypto Investors Scammed by Fake Token with BlackRock’s Ticker
A scam token with the same ticker as BlackRock’s legitimate ETF has deceived crypto investors, resulting in losses of nearly $90,000 worth of cryptocurrency. The fraudulent token, called BNB Chain-based iShares Bitcoin (IBTC), took advantage of the excitement surrounding spot bitcoin exchange-traded funds (ETFs).
According to a post from blockchain analytics firm PeckShield, the scammer swapped one quadrillion IBTC tokens for 394.8 Binance Coin (BNB) on PancakeSwap, causing the price of IBTC to plummet by 100% from $0.0025.
The scammer then sent the entire sum to an address that had already received over $700,000 worth of BNB tokens from PancakeSwap and contacted Binance’s withdrawal address.
Some crypto investors may have mistaken the scam token for BlackRock’s proposed iShares Bitcoin ETF, which shares the same IBTC ticker. As anticipation grows for regulatory approval of spot Bitcoin ETFs by the SEC, there is speculation that approvals could come before the end of 2023.
The recent ruling in the Grayscale case by the U.S. Court of Appeals for the D.C. Circuit also adds pressure on the SEC to review Grayscale Bitcoin Trust’s conversion to a Bitcoin ETF, potentially leading to more approvals or further delays.
Hot Take: Crypto Investors Fall Victim to Scam Token Posing as BlackRock’s ETF
Crypto investors need to exercise caution and conduct thorough research before investing in any cryptocurrency. In this case, the BNB Chain-based iShares Bitcoin (IBTC) token scammed investors out of nearly $90,000 worth of crypto. The scammer exploited the excitement surrounding spot bitcoin ETFs and used a ticker similar to BlackRock’s legitimate ETF to deceive unsuspecting investors.
It is crucial for investors to verify the authenticity of tokens and conduct due diligence on any investment opportunity. Additionally, staying informed about regulatory developments and potential scams can help protect your investments in the volatile crypto market. As the demand for crypto investments continues to rise, it becomes even more important to be vigilant and cautious to avoid falling victim to scams.
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