(BlockBar) The fraudster claimed in the Telegram group that he promises investors with “1 ETH exchange 105HT at a ratio of 1 to 105, tricking users into transferring their digital assets into the fraudster’s account and transferring users to the fake HT
According to CoinHunter’s incomplete statistics, up to now, many users have been deceived, with the total amount of fraud exceeding 15,000 ETH, Furthermore, a single user has been cheated of 885 ETH at most. Huobi has issued relevant notices to remind users to guard against the risk of ” HT interest arbitrage ” and other forms of fraud. However, users are suffered constantly.
What is “interest arbitrage scam”
The so-called interest arbitrage is to use of the same currency in the existence of price differences between different exchanges by buying low and selling high to earn the gap. In the “interest arbitrage” scam, the fraudsters firstly establish fake official Telegram groups, such as “Huobi official arbitrage Chinese discussion group”, and pull in a large number of robots, which send a message every minute on average, proclaiming the benefits of interest arbitrage.
First, the group manager will post a group announcement to teach users how to utilize the price gap, and then guide users to download the imToken wallet and purchase ETH. Next, he will lure users to tranfer their ETH token into the ETH address mentioned in the announcement. Finally, the scammer returns a certain amount of fake HT tokens to the users through the contract address. In addition, when the user finds that they are cheated, those who pretend to be the official customer service staff of imToken will purposely lie to the deceived users by providing a fake transaction cancellation tool. Once usrers login in the fake website with mnemonic or private key, users would be cheated one more time.
As early as November 2018, there was an interest arbitrage scam in the name of Binance. In the Telegram group, the fraudster induces the user to put ETH into a smart contract address, and then the corresponding PAX (stable currency linked to the U.S. dollar) can be obtained with the exchange ratio of 1:200. Next, Intermediate profits can be made by putting PAX into the Binance exchange and buying it back into Ethereum)
In fact, the fraudsters used Ethereum’s smart contract function to develop a highly fake PAX, so the victim’s wallet received a fake PAX, or air coin. Since the air coin cannot be transferred to the coin security exchange for trading, the fraudsters will lie and finally kick the victims out of the Telegram group.
A new bull market seems to have begun. Inverters should be careful with wallet key or mnemonic so as not to cause unnecessary asset losses.
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