Instagram Influencer Scams Followers Out Of Millions In Bitcoin

Bitcoinist

By the way of network effect, each new market cycle brings more and more attention to Bitcoin. The price per coin rises as more investors pile in looking for a piece of the profits the cryptocurrency is known for providing over the years. At the same time, however, it also attracts more criminals, scammers, and crooks to the cryptocurrency space.

The scammers aren’t always hidden behind fake accounts, or are cyber hackers on the other side of the planet. In fact, some are brazen enough to scam their own followers on social media. A developing story involving millions in stolen Bitcoin is an example of why even well-known influencers cannot be trusted when it comes to crypto.

How To Get Free Crypto  

Here’s the break down of what happened, and how you can take steps to avoid similar scams yourself.

Instagram Influencer Steals Millions In BTC From Investors Blinded By Greed

Federal investigators are charging Jegara Igbara – who uses the alter ego Jay Mazini on social media – with defrauding his followers out of millions of dollars worth of Bitcoin.

Igbara had lured victims by offering “3.5 to 5% over market rates,” claiming that the exchanges he uses had begun to limit how much Bitcoin he could buy at once. Under the Jay Mazini guise, Igbara had amassed an Instagram account with over 1 million followers, where he had shared videos of himself gifting cash to others.

RELATED READING | FATHER AND SON EXCHANGE BLOWS ON SOCIAL MEDIA OVER BITCOIN BET

“Igbara used his immense social media popularity to dupe his followers into selling him Bitcoin,” said Mark Lesko, acting U.S. attorney for the Eastern District of New York.

Documents reveal that at least $2.5 million worth in total was stolen, with one victim alone sending Igbara 54 BTC – in which Igbara only wired $500,000 of his part of the total transaction.

Coinbase Banner  

Accounts have since appeared on Instragram named “Jay Manzini is a scam” where screenshots of upset followers are being shared.

As Bitcoin price climbs, it doesn't just attract new investors – it attracts new scammers, too | Source: BTCUSD on TradingView.com

How Bitcoin Investors Can Protect Themselves From Scams

“Buyer beware when making purchases of Bitcoin or any other cryptocurrency over social media,” said Jonathan Larsen, an investigator for the Internal Revenue Service. But how?

For one, if a situation seems too good to be true, such as the overly high exchange rates in this scenario, then it probably is. Second, when dealing with crypto or even cash, only transact with a reputable third-party. Exchanging coins with an individual you don’t know increases any risk of loss exponentially.

RELATED READING | HOW LASER EYES COULD HAVE BITCOIN INVESTORS SEEING RED

Avoid any offers for free cryptocurrency on social media, especially if an account is offering free crypto in exchange in return for some being sent first. This is a common scam. Even if the account appears to be Elon Musk, or even is his account, be careful – the account could be a fake or a real account that’s been compromised.

FreeBitcoin Banner  

Yes, even real verified accounts carry risk. Igbara himself is a real person, with a real account, albeit using a phony pseudonym and was hiding bad intentions. Crypto is full of seemingly friendly pseudonyms that very well could also have such ulterior motives.

Other reliable tips include never disclosing to anyone that you hold crypto, stick to two-factor authentication that doesn’t rely on SMS, and to use unique passwords for each crypto exchange account. For long-term coin storage, moving them to a hardware wallet is safest, but even that can pose risks, and requires in-depth research on privacy as well as personal operational and computer security.

Featured image from Pixabay, Charts from TradingView.com

Go to Source
Author: Tony Spilotro


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.