Over 250 UK Users Exploited for More Than $650,000

As blockchain and cryptoadoption continues to grow globally, a rising number of users are entering the space in search of quick profits and attractive investment returns.

Unfortunately, scammers have capitalised on this influx, repeatedly defrauding investors.

In recent months, the UK has experienced a significant crypto hacking incident that impacted over 250 individuals, with hackers stealing $650,000.

On X (formerly known as Twitter), blockchain investigator ZachXBT has identified one criminal who exploited demo trading accounts to sell fraudulent copy trading insights.

This scam involved fake Bybit demo accounts designed to lure unsuspecting victims with promises of easy money.

The perpetrator, known as @ape_31/@60711, has misled numerous individuals using counterfeit wallet screenshots, dubious over-the-counter deals, and proxy investing scams.

According to ZachXBT, this scammer has extorted up to $40,000 from individual investors, employing blackmail and scare tactics to extract additional funds following initial deposits from eager traders.

Blockchain Sleuth ZachXBT Reveals Details of Fake Bybit Demo Account Scam

ZachXBT has shed light on the hack by examining 16 exchange deposit addresses associated with the scam.

Over the past year, these addresses received funds from more than 250 victims, amassing approximately $650,000.

Victims were misled into believing they were trading through authentic Bybit demo accounts, while in reality, they were victims of a sophisticated fraud.

Complicating matters, the scammer, known as Ape 31, frequently altered the deposit addresses, making it challenging to gauge the full extent of the operation.

ZachXBT suggests that the total amount stolen could be significantly higher, as the perpetrator has actively sought to evade detection.

He has reported his findings to law enforcement in an effort to trace Ape 31's activities and prevent further harm.

In addition to using fake Bybit demo accounts, Ape 31 attempted to orchestrate fraudulent over-the-counter (OTC) crypto trades.

The scammer lured a potential victim into a video call under the guise of finalising a legitimate business deal.

However, the call was recorded, which ZachXBT has made public in hopes of identifying the con artist.

The footage later circulated, enabling other victims to identify the voice.

A few astute victims managed to gather information that helped pinpoint the scammer's location.

According to ZachXBT, this recording is linked to Ape 31 and numerous other fraudulent activities, including the initial hack.

Analysis of a TradingView account indicated that @ape_31 utilised a UK telecom provider, suggesting he is likely based in Britain.

Amidst a torrent of replies supporting ZachXBT's investigation and sharing similar experiences, one user criticised crypto exchange Bybit for its demo trading dashboard, stating that its resemblance to the actual trading platform facilitates criminal exploitation.

Crypto Hacks on the Rise?

The Bybit demo account scam highlighted by the blockchain expert is indicative of a broader increase in cryptocurrency hacks within the industry.

Theis incident reveal an escalating threat posed by hacks and scams that target both centralised and decentralised platforms.

Recent data from Immunefi reveals that cryptocurrency-related hacks led to losses totaling $409 million in the third quarter of 2024 alone.