WallStreetBets members lose over $2 million in crypto scam

A textbook scam, ladies and gentlemen! Members of the legendary WallStreetBets Reddit forum were reportedly targeted by a probably cryptocurrency scam that could have led to losses over $2 million.

This, according to a report by Bloomberg.

Apparently, WSB members were encouraged to buy a new token called — wait for it — WSB Finance on an account called “WallStreetBets – Crypto Pumps” on the messaging service Telegram. As you may have guessed, this sneaky sounding account was not affiliated with the subreddit.

And their modus operandi was even sneakier.

The account told users to send either Binance coins (BNB) or Ether to a crypto wallet and then contact its token bot to service WSB Finance tokens, which goes without saying, were never delivered.

Around 3,451 BNB were then removed from this wallet, which at the current valuation of the cryptocurrency of around $650 equates to more than $2.2 million. This does not account for how much Ether was also sent.

The Telegram group has since disappeared.

WallStreetBets gained notoriety in January for causing an explosion in the price of GameStop stock in a community bid to counter short sellers. It made headlines then, and is occasionally in the news since, as the community, which just hit a milestone of 10 million members, remains potent as ever.

That said, when it comes to crypto, the subreddit has been resistant to allow discussions centered around cryptocurrency. This makes sense on some level, since this little corner is all about traditional stocks.

However, the forums tentatively allowed lifting its ban in April, but reinstated it less than 24 hours later.

This little scam job, though, is a fair warning for the future.

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