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Prominent Crypto Trader Issues Warning About Cold Wallet Scam

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Prominent Crypto Trader Issues Warning About Cold Wallet Scam

  beincrypto.com 18 m

Prominent Crypto Trader Issues Warning About Cold Wallet Scam

The Wolf of All Streets, a renowned crypto trader, cautioned his 916,700 followers to stay vigilant, emphasizing that both hot and cold wallets can be susceptible to scams.

“I have been speaking with one of my followers here, who shared that he was hacked this morning on a Ledger scam,” he stated.

Crypto Trader Urges Followers To Stay Vigilant Against Cold Wallet Scams

The Wolf of all Streets, a crypto trader, recommends exercising caution when navigating and storing crypto in the current highly volatile market.

He disclosed that he had a conversation with a close friend, someone vigilant about security. He explained that this person encountered a problem with his Nano -S hard wallet:

“Got hit with a 503 HTTP API error when it went to synchronize, which in and of itself terrified me. Then I reached out to Ledger Support on Twitter and within seconds I had the CTO reaching out via DM.”

However, someone posed to be the chief technology officer (CTO) of the company. Furthermore, they walked the victim through steps to supposedly fix the issue which resulted in his wallet being “completely drained.”

“I even asked him about why it was required and he mentioned it was end to end encrypted and a requirement to sync. Moving too quickly and obviously not thinking clearly, I gave it and within minutes realized my account was completely drained.”

Sophisticated Scams On The Rise In Recent Times

Whether it’s a cold wallet or a hot wallet, investors should exercise utmost caution. Furthermore, especially before engaging in conversations about instructions or inputting information into their wallets.

As technology rapidly advances, the ease with which scams and hackers can drain your funds is only increasing.

It was recently reported that artificial intelligence (AI) now has the ability to assist hackers in draining victims’ wallets. On May 11, BeInCrypto reported that Google’s Bard could also identify smart contract bugs that criminals can use to steal crypto or money.

On July 23, crypto payments service provider Alphapo had over $23 million worth of crypto assets stolen from its hot wallets.

PeckShield, a blockchain security firm, detailed the stolen funds. These comprised 6.074 million USDT, $108,000 USDC, 100.2M FTN, 430K TFL, 2.5K ETH, and 1,700 DAI.

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