Michael Saylor Giveaway Scam: Difference between revisions

From Quadriga Initiative Cryptocurrency Hacks, Scams, and Frauds Repository
Jump to navigation Jump to search
(Another 30 minutes complete. Prevention added and much more research.)
No edit summary
Tag: Manual revert
Line 1: Line 1:
{{Case Study Under Construction}}{{Unattributed Sources}}
{{Imported Case Study 2|source=https://www.quadrigainitiative.com/casestudy/michaelsaylorgiveawayscam.php}}
{{Unattributed Sources}}


[[File:Giveaway.jpg|thumb|YouTube]]A Coinbase customer was tricked into sending 26 BTC to a convincing-looking MicroStrategy website and live-stream on YouTube. The promised reward was not received and there is no indication any funds were recovered. The specific website and channel were taken down within a few hours, however the scammers continue to break into more accounts.
[[File:Giveaway.jpg|thumb|YouTube]]A Coinbase customer was tricked into sending 26 BTC to a scammer who created a convincing-looking MicroStrategy website and live-stream on YouTube. There is no indication any funds were recovered. The specific website and channel were taken down within a few hours, however the scammers continue to break into more accounts.


The country for this case study is not yet known.<ref name="reddit-6213" /><ref name="reddit-6214" /><ref name="whalealerttwitter-6215" /><ref name="scamalert-6216" /><ref name="blockstream-6217" /><ref name="blockchaindotcom-6218" /><ref name="saylortwitter-6219" /><ref name="gagadget-6220" />
The country for this case study is not yet known.<ref name="reddit-6213" /><ref name="reddit-6214" /><ref name="whalealerttwitter-6215" /><ref name="scamalert-6216" /><ref name="blockstream-6217" /><ref name="blockchaindotcom-6218" /><ref name="saylortwitter-6219" /><ref name="gagadget-6220" /><ref name="coincodecap-6221" /><ref name="zycrypto-6222" /><ref name="ms22archive-6223" /><ref name="youtube-6224" /><ref name="thecryptobasic-6225" /><ref name="themarketperiodical-6226" /><ref name="beincrypto-6227" /><ref name="yahoofinance-6228" /><ref name="bloggoogle-6048" /><ref name="hitechglitz-6050" />


== About MicroStrategy ==
== About YouTube ==
"MicroStrategy is the largest crypto investor in the world. The company is developing software for data analysis using artificial intelligence algorithms. MicroStrategy turnkey solutions are used for business decision making and mobile software development."
"To begin with, we note that MicroStrategy is the largest crypto investor in the world. The company is developing software for data analysis using artificial intelligence algorithms. MicroStrategy turnkey solutions are used for business decision making and mobile software development."
 
"The company has more than 124,000 BTC worth over $5,000,000,000. Social media scammers introduced themselves as Michael Saylor and offered investors to double their investment. One gullible user "pecked" at the offer."
 
"Details from Scam Alert reported that this was a very effective ploy frequently carried out by scammers promising high returns on cryptocurrencies sent to their addresses using the faces of popular individuals. Furthermore, it was revealed that the 26 BTC was sent over five transactions."
 
“One of the most popular and effective types of scams in which the scammer promises to return multiple times the amount of cryptocurrency the victims sends to them. Giveaways scammers will pretend to be a famous person or to represent a trusted company in order to gain the victim’s trust and are mostly active on Youtube, Telegram and Twitter.”
 
"Speaking of the attacks, which he has been following for two years, Google says that fraudsters sent emails to content creators on YouTube with a proposal for cooperation. Once the channel owner agreed, the scammers sent a link to malware that appeared to be a legitimate URL." "Google provided an example of one of the phishing emails, and it shows that the hackers will ask the YouTube creator to try the product. In reality, the product is a ploy to trick the victim into installing malware on their computer."
 
"The attackers created more than 1,000 websites to increase the chances of fraud, including some that were presented as company sites that actually exist, including sites with Cisco VPN and Steam games. One of the websites was presented as a site with “Covid19 news software”. Google has linked to fraudsters about 15,000 accounts registered for this campaign alone and used to send phishing emails to YouTube channel owners, with links to victims to download malware."


"The company has more than 124,000 BTC worth over $5,000,000,000."  
"A payment of 26 #BTC (1,124,191 USD) was just made to a confirmed Michael Saylor Giveaway scam!" "It represents the single largest payment made to this kind of scheme."  


=== Large Crypto Giveaway Announced ===
"We suspect this payment was made through a #Coinbase address."
In January 2022, a new giveaway event was announced online, reportedly backed by Michael Saylor<ref name="ms22archive-6223" />.<blockquote>"During this unique event we will give you a chance to win 5 000 BTC or 50 000 ETH, have a look at the rules and don’t miss on your chance! You can only participate once!"


"We believe that BTC & ETH will make the world more fair. To speed up the process of cryptocurrency mass adoption, we decided to run 5 000 BTC & 50 000 ETH giveaway for all crypto holders!"
"Whale Alert reported the incident using their official Twitter handle at about 3 p.m. UTC, stating that a user had lost about 26 BTC to scammers that had created a fake giveaway posing as MicroStrategy head and Bitcoin Evangelist Michael Saylor."


"To participate you just need to send from (0.1 BTC to 30 BTC) or (0.5 ETH to 500 ETH) to the contribution address and we will immediately send you back (0.2 BTC to 60 BTC) or (1 ETH to 1 000 ETH) (x2) to the address you sent it from"
According to Michael Saylor, "489 of these scams were launched on YouTube last week. We report them every 15 minutes and they are taken down after a few hours, but the scammers just launch more…" "According to the businessman, MicroStrategy is trying to track them and send complaints, after which YouTube removes the videos."


"To participate, you must have a working wallet with the desired amount. Send the allowed number of coins to the special address below. After receiving your funds, we will immediately send back according to the rules. You can only take part in our giveaway once, hurry up!"
"YouTube has since shut down the channel operated by the scammers. The website has also stopped functioning and reports an error message when opened. The loss represents one of the largest single payments for this kind of scheme."


"In order to calculate your prize, you can use the built-in calculator on our website"</blockquote>
The country for this case study is not yet known.


== About YouTube ==
The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.
<ref name="youtube-6224" />
 
Include:
 
* Known history of when and how the service was started.
* What problems does the company or service claim to solve?
* What marketing materials were used by the firm or business?
* Audits performed, and excerpts that may have been included.
* Business registration documents shown (fake or legitimate).
* How were people recruited to participate?
* Public warnings and announcements prior to the event.
 
Don't Include:
* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
* Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.


== The Reality ==
== The Reality ==
“One of the most popular and effective types of scams in which the scammer promises to return multiple times the amount of cryptocurrency the victims sends to them. Giveaways scammers will pretend to be a famous person or to represent a trusted company in order to gain the victim’s trust and are mostly active on Youtube, Telegram and Twitter.”
This sections is included if a case involved deception or information that was unknown at the time. Examples include:
 
Social media scammers often introduce themselves as Michael Saylor and offered investors to double their investment.


"Details from Scam Alert reported that this was a very effective ploy frequently carried out by scammers promising high returns on cryptocurrencies sent to their addresses using the faces of popular individuals. Furthermore, it was revealed that the 26 BTC was sent over five transactions."
* When the service was actually started (if different than the "official story").
* Who actually ran a service and their own personal history.
* How the service was structured behind the scenes. (For example, there was no "trading bot".)
* Details of what audits reported and how vulnerabilities were missed during auditing.


== What Happened ==
== What Happened ==
One gullible user "pecked" at an offer from "Michael Saylor" of "doubling" their 26 bitcoin. "A payment of 26 #BTC (1,124,191 USD) was just made to a confirmed Michael Saylor Giveaway scam!" "It represents the single largest payment made to this kind of scheme."
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
{| class="wikitable"
{| class="wikitable"
|+Key Event Timeline - Michael Saylor Giveaway Scam
|+Key Event Timeline - Michael Saylor Giveaway Scam
Line 38: Line 63:
!Event
!Event
!Description
!Description
|-
|October 20th, 2021 8:00:00 AM MDT
|Google Blog Post
|Google Blog reports about phishing campaigns targeting YouTube creators with cookie theft malware<ref name="bloggoogle-6048" />.
|-
|October 21st, 2021 2:08:18 AM MDT
|HiTechGlitz Report
|HiTechGlitz reports a summary of the Google Blog article<ref name="hitechglitz-6050" />.
|-
|January 11th, 2022 9:21:33 AM MST
|Internet Archive Capture
|The Internet Archive captures a sample of the giveaway website<ref name="ms22archive-6223" />.
|-
|-
|January 15th, 2022 8:10:00 AM MST
|January 15th, 2022 8:10:00 AM MST
|Whale Alert On Twitter
|Main Event
|Whale Alert notes the payment made on the blockchain.
|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
|-
|January 16th, 2022 10:43:11 PM MST
|BeInCrypto Article
|BeInCrypto reports on the incident<ref name="beincrypto-6227" />.
|-
|January 17th, 2022 2:05:18 AM MST
|CoinCodeCap Article
|CoinCodeCap reports that a bitcoin user has lost $1.14 million to scammers posing as MicroStrategy CEO Michael Saylor<ref name="coincodecap-6221" />. The user sent 26.4 bitcoins (BTC) to an address confirmed as a scam by crypto tracking service Whale Alert. This represents the largest payment ever made to a fake giveaway scam. The scam took place on a website and YouTube, both commonly used by con artists to impersonate Saylor. The YouTube channel has been taken down, and the website now returns an error message. Saylor noted that around 489 of these scams were launched on YouTube in a week, with scammers relaunching after takedowns. Saylor's support for Bitcoin has made him a frequent target for impersonation scams. These scams involve promising to multiply cryptocurrency sent by investors but instead stealing the funds. Scammers often impersonate other notable figures such as Elon Musk, and their schemes have become highly professional and aggressive.
|-
|January 17th, 2022 2:07:15 AM MST
|FXEmpire Article
|FXEmpire reports the breach<ref>[https://www.fxempire.com/news/article/scammers-posing-as-michael-saylor-steals-over-1-million-bitcoin-867876 Scammers Posing as Michael Saylor Steal Over $1 Million Bitcoin - FXEmpire] (Jul 24, 2023)</ref>. This was reposted on Yahoo Finance<ref name="yahoofinance-6228" />.
|-
|January 17th, 2022 2:30:00 PM MST
|The Market Periodical Article
|The Market Periodical reports on the incident<ref name="themarketperiodical-6226" />.
|-
|January 18th, 2022 7:24:53 AM MST
|ZyCrypto Article Published
|ZyCrypto reports that a bitcoin holder has fallen victim to crypto scammers, losing more than $1 million worth of bitcoin in a scheme where the fraudsters impersonated Michael Saylor<ref name="zycrypto-6222" />. This incident marks the largest payment made to such a scam. Whale Alert, a platform that monitors cryptocurrency transactions, reported that the user lost 26 BTC to scammers posing as MicroStrategy's CEO, Michael Saylor. The scammers operated a fake giveaway, promising to multiply tokens sent to them. The transaction, totaling 26 BTC (approximately $1,124,191 USD), likely occurred through a Coinbase wallet. Michael Saylor acknowledged the prevalence of such scams on YouTube, where scammers repeatedly posted fraudulent videos even after being taken down. The YouTube channel has been shut down, and the website has become inaccessible.
|-
|-
|January 19th, 2022 4:57:24 AM MST
|
|The Crypto Basic Article Published
|
|The Crypto Basic reports that a fake YouTube channel impersonating MicroStrategy CEO Michael Saylor swindled 26 BTC (over $1.1 million) from a user. Scammers claimed they would double any amount sent to a specified address. The user sent 26 BTC in five transactions, suspectingly through a Coinbase address. Michael Saylor revealed that 489 scams were launched on YouTube within a week using his name, and though they were reported and taken down, scammers persistently create more. Other cases are also mentioned in the article<ref name="thecryptobasic-6225" />.
|
|}
|}


== Technical Details ==
== Technical Details ==
"Speaking of the attacks, which he has been following for two years, Google says that fraudsters sent emails to content creators on YouTube with a proposal for cooperation. Once the channel owner agreed, the scammers sent a link to malware that appeared to be a legitimate URL." "Google provided an example of one of the phishing emails, and it shows that the hackers will ask the YouTube creator to try the product. In reality, the product is a ploy to trick the victim into installing malware on their computer."
This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?
 
"The attackers created more than 1,000 websites to increase the chances of fraud, including some that were presented as company sites that actually exist, including sites with Cisco VPN and Steam games. One of the websites was presented as a site with “Covid19 news software”. Google has linked to fraudsters about 15,000 accounts registered for this campaign alone and used to send phishing emails to YouTube channel owners, with links to victims to download malware."
 
"We suspect this payment was made through a #Coinbase address."
 
<ref name="bloggoogle-6048" />
 
 
The Crypto Basic reports that a fake YouTube channel impersonating MicroStrategy CEO Michael Saylor swindled 26 BTC (over $1.1 million) from a user. Scammers claimed they would double any amount sent to a specified address. The user sent 26 BTC in five transactions, suspectingly through a Coinbase address. Michael Saylor revealed that 489 scams were launched on YouTube within a week using his name, and though they were reported and taken down, scammers persistently create more. Other cases are also mentioned in the article<ref name="thecryptobasic-6225" />.
 
 
A Bitcoin holder has fallen victim to crypto scammers, losing more than $1 million worth of Bitcoin in a scheme where the fraudsters impersonated Michael Saylor<ref name="zycrypto-6222" />. This incident marks the largest payment made to such a scam<ref name="zycrypto-6222" />. Whale Alert, a platform that monitors cryptocurrency transactions, reported that the user lost 26 BTC to scammers posing as MicroStrategy's CEO, Michael Saylor. The scammers operated a fake giveaway, promising to multiply tokens sent to them. The transaction, totaling 26 BTC (approximately $1,124,191 USD), likely occurred through a Coinbase wallet. Michael Saylor acknowledged the prevalence of such scams on YouTube, where scammers repeatedly posted fraudulent videos even after being taken down<ref name="zycrypto-6222" />. This type of scam involves scammers impersonating well-known figures or trusted entities to gain victims' trust and convince them to send cryptocurrencies with the promise of high returns. The scammers' YouTube channel has been shut down, and the website they operated has become inaccessible. This case highlights the risks associated with impersonation scams in the cryptocurrency space<ref name="zycrypto-6222" />.
 
 
 
A bitcoin user has lost $1.14 million to scammers posing as MicroStrategy CEO Michael Saylor. The user sent 26.4 bitcoins (BTC) to an address confirmed as a scam by crypto tracking service Whale Alert<ref name="coincodecap-6221" />. This represents the largest payment ever made to a fake giveaway scam. The scam took place on a website and YouTube, both commonly used by con artists to impersonate Saylor. The YouTube channel has been taken down, and the website now returns an error message. Saylor noted that around 489 of these scams were launched on YouTube in a week, with scammers relaunching after takedowns. Saylor's support for Bitcoin has made him a frequent target for impersonation scams. These scams involve promising to multiply cryptocurrency sent by investors but instead stealing the funds. Scammers often impersonate other notable figures such as Elon Musk, and their schemes have become highly professional and aggressive<ref name="coincodecap-6221" />.


== Total Amount Lost ==
== Total Amount Lost ==
The total amount lost has been estimated at $1,124,000 USD.
The total amount lost has been estimated at $1,124,000 USD.
How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?


== Immediate Reactions ==
== Immediate Reactions ==
 
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?
=== Whale Alert Reactions ===
"A payment of 26 #BTC (1,124,191 USD) was just made to a confirmed Michael Saylor Giveaway scam!" "It represents the single largest payment made to this kind of scheme."
 
"Whale Alert reported the incident using their official Twitter handle at about 3 p.m. UTC, stating that a user had lost about 26 BTC to scammers that had created a fake giveaway posing as MicroStrategy head and Bitcoin Evangelist Michael Saylor."


== Ultimate Outcome ==
== Ultimate Outcome ==
"We suspect this payment was made through a #Coinbase address."
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?
 
"YouTube has since shut down the channel operated by the scammers. The website has also stopped functioning and reports an error message when opened. The loss represents one of the largest single payments for this kind of scheme."


== Total Amount Recovered ==
== Total Amount Recovered ==
There do not appear to have been any funds recovered in this case.
There do not appear to have been any funds recovered in this case.
What funds were recovered? What funds were reimbursed for those affected users?


== Ongoing Developments ==
== Ongoing Developments ==
What parts of this case are still remaining to be concluded?
== General Prevention Policies ==
Better education for new cryptocurrency users would be helpful. For example, a simple quiz to explain common types of scams. If this could be standardized, then users would do it once and it would apply to all platforms.


=== Battle Against The Scams ===
Platforms with delayed withdrawals who check outgoing addresses would also prevent this type of attack, as these types of scams are typically uncovered within a few hours.
"MicroStrategy is trying to track them and send complaints, after which YouTube removes the videos." According to Michael Saylor, "489 of these scams were launched on YouTube last week. We report them every 15 minutes and they are taken down after a few hours, but the scammers just launch more…"
== Individual Prevention Policies ==
== Individual Prevention Policies ==
Individuals need to take care and ensure that any offer they receive is from a trusted individual and makes reasonable sense. In this case, the offer of millions of dollars worth of funds being doubled doesn't make financial sense. It would not have taken much digging to determine that this is a common fraud.
{{Prevention:Individuals:Placeholder}}
 
{{Prevention:Individuals:Question Unrealistic Profit}}
 
{{Prevention:Individuals:Double Check Transactions}}


{{Prevention:Individuals:End}}
{{Prevention:Individuals:End}}


== Platform Prevention Policies ==
== Platform Prevention Policies ==
Better education for new cryptocurrency users could prevent this situation. For example, a simple tutorial and quiz to explain common types of scams. If this could be standardized, users could do it once and it would apply to all platforms. In the case of funds stored on platforms, withdrawals could be delayed to check outgoing addresses, as these types of scams are typically uncovered within a few hours.
{{Prevention:Platforms:Placeholder}}
 
{{Prevention:Platforms:Cryptocurrency Safety Quiz}}
 
{{Prevention:Platforms:Establish Industry Insurance Fund}}


{{Prevention:Platforms:End}}
{{Prevention:Platforms:End}}


== Regulatory Prevention Policies ==
== Regulatory Prevention Policies ==
Regulators need to focus heavily on education, creating a standardized tutorial and quiz for participants in the space to ensure a base level of knowledge against common scam tactics. An industry insurance fund can be set up to provide some relief for victims and assist in recovery of the defrauded funds.
{{Prevention:Regulators:Placeholder}}
 
{{Prevention:Regulators:Cryptocurrency Education Mandate}}
 
{{Prevention:Regulators:Establish Industry Insurance Fund}}


{{Prevention:Regulators:End}}
{{Prevention:Regulators:End}}


== References ==
== References ==
<references>
<references><ref name="reddit-6213">[https://www.reddit.com/r/CryptoCurrency/comments/s6xtxm/the_scammer_who_received_the_single_largest/ The scammer who received the single largest payment of 26BTC has received a total of 87BTC. : CryptoCurrency] (Jan 30, 2022)</ref>
<ref name="reddit-6213">[https://www.reddit.com/r/CryptoCurrency/comments/s6xtxm/the_scammer_who_received_the_single_largest/ The scammer who received the single largest payment of 26BTC has received a total of 87BTC. : CryptoCurrency] (Jan 30, 2022)</ref>
 
<ref name="reddit-6214">[https://np.reddit.com/r/CryptoCurrency/comments/s1a7ft/can_someone_explain_to_me_how_people_fall_for/ Can someone explain to me how people fall for scams like "Send crypto to this adress to double it"? : CryptoCurrency] (Feb 3, 2022)</ref>
<ref name="reddit-6214">[https://np.reddit.com/r/CryptoCurrency/comments/s1a7ft/can_someone_explain_to_me_how_people_fall_for/ Can someone explain to me how people fall for scams like "Send crypto to this adress to double it"? : CryptoCurrency] (Feb 3, 2022)</ref>
<ref name="whalealerttwitter-6215">[https://twitter.com/whale_alert/status/1482369659911483395 @whale_alert Twitter] (Feb 4, 2022)</ref>
<ref name="whalealerttwitter-6215">[https://twitter.com/whale_alert/status/1482369659911483395 @whale_alert Twitter] (Feb 4, 2022)</ref>
<ref name="scamalert-6216">https://scam-alert.io/scam/1Dv4yeEEoWSsmRFzFsNu3J7eiTTiLU3LQF (Feb 4, 2022)</ref>
 
<ref name="scamalert-6216">[https://scam-alert.io/scam/1Dv4yeEEoWSsmRFzFsNu3J7eiTTiLU3LQF https://scam-alert.io/scam/1Dv4yeEEoWSsmRFzFsNu3J7eiTTiLU3LQF] (Feb 4, 2022)</ref>
 
<ref name="blockstream-6217">[https://blockstream.info/address/1Dv4yeEEoWSsmRFzFsNu3J7eiTTiLU3LQF Bitcoin Explorer - Blockstream.info] (Feb 4, 2022)</ref>
<ref name="blockstream-6217">[https://blockstream.info/address/1Dv4yeEEoWSsmRFzFsNu3J7eiTTiLU3LQF Bitcoin Explorer - Blockstream.info] (Feb 4, 2022)</ref>
<ref name="blockchaindotcom-6218">[https://www.blockchain.com/btc/address/1Dv4yeEEoWSsmRFzFsNu3J7eiTTiLU3LQF?page=2 Address: 1Dv4yeEEoWSsmRFzFsNu3J7eiTTiLU3LQF | Blockchain Explorer] (Feb 4, 2022)</ref>
<ref name="blockchaindotcom-6218">[https://www.blockchain.com/btc/address/1Dv4yeEEoWSsmRFzFsNu3J7eiTTiLU3LQF?page=2 Address: 1Dv4yeEEoWSsmRFzFsNu3J7eiTTiLU3LQF | Blockchain Explorer] (Feb 4, 2022)</ref>
<ref name="saylortwitter-6219">[https://twitter.com/saylor/status/1482542350861754370 @saylor Twitter] (Feb 4, 2022)</ref>
<ref name="saylortwitter-6219">[https://twitter.com/saylor/status/1482542350861754370 @saylor Twitter] (Feb 4, 2022)</ref>
<ref name="gagadget-6220">[https://gagadget.com/en/105466-best-valentines-day-gifts-for-her-and-him/ 22 Best Valentine's Day Gift for Her and Him in 2022] (Feb 4, 2022)</ref>
<ref name="gagadget-6220">[https://gagadget.com/en/105466-best-valentines-day-gifts-for-her-and-him/ 22 Best Valentine's Day Gift for Her and Him in 2022] (Feb 4, 2022)</ref>
<ref name="coincodecap-6221">[https://coincodecap.com/michael-saylor-giveaway-scam A User Lost $1.14 Million To Michael Saylor Giveaway Scam - CoinCodeCap] (Feb 4, 2022)</ref>
 
<ref name="zycrypto-6222">[https://zycrypto.com/this-bitcoiner-just-lost-26-btc-worth-over-a-million-dollars-to-a-michael-saylor-giveaway-scam/ This Bitcoiner Just Lost 26 BTC Worth Over A Million Dollars To A "Michael Saylor Giveaway" Scam - ZyCrypto] (Feb 4, 2022)</ref>
<ref name="coincodecap-6221">[https://coincodecap.com/michael-saylor-giveaway-scam A User Lost $1.14 Million To Michael Saylor Giveaway Scam | CoinCodeCap] (Feb 4, 2022)</ref>
<ref name="ms22archive-6223">[https://web.archive.org/web/20220111162133/https://ms22.gift/ Biggest giveaway CRYPTO of $100 000 000 Archive January 11th, 2022 9:21:33 AM MST] (Feb 4, 2022)</ref>
 
<ref name="zycrypto-6222">[https://zycrypto.com/this-bitcoiner-just-lost-26-btc-worth-over-a-million-dollars-to-a-michael-saylor-giveaway-scam/ This Bitcoiner Just Lost 26 BTC Worth Over A Million Dollars To A "Michael Saylor Giveaway" Scam ⋆ ZyCrypto] (Feb 4, 2022)</ref>
 
<ref name="ms22archive-6223">[https://web.archive.org/web/20220111162133/https://ms22.gift/ Biggest giveaway CRYPTO of $100 000 000] (Feb 4, 2022)</ref>
 
<ref name="youtube-6224">[https://www.youtube.com/ YouTube] (Feb 4, 2022)</ref>
<ref name="youtube-6224">[https://www.youtube.com/ YouTube] (Feb 4, 2022)</ref>
<ref name="thecryptobasic-6225">[https://thecryptobasic.com/2022/01/19/a-user-lost-26-bitcoin-to-a-scammer-pretending-to-be-microstrategy-ceo-michael-saylor/ A User Lost 26 Bitcoin To A Scammer Pretending To Be MicroStrategy CEO, Michael Saylor - The Crypto Basic] (Feb 4, 2022)</ref>
<ref name="thecryptobasic-6225">[https://thecryptobasic.com/2022/01/19/a-user-lost-26-bitcoin-to-a-scammer-pretending-to-be-microstrategy-ceo-michael-saylor/ A User Lost 26 Bitcoin To A Scammer Pretending To Be MicroStrategy CEO, Michael Saylor - The Crypto Basic] (Feb 4, 2022)</ref>
<ref name="themarketperiodical-6226">[https://themarketperiodical.com/2022/01/17/an-investor-lost-26-bitcoins-to-a-fake-giveaway-scam-pretending-to-be-hosted-by-michael-saylor/ An Investor Lost 26 Bitcoins To A Fake Giveaway Scam Pretending To Be Hosted By Michael Saylor - The Market Periodical] (Feb 4, 2022)</ref>
 
<ref name="beincrypto-6227">[https://beincrypto.com/bitcoin-user-loses-record-1-1m-scam-michael-saylor-giveaway/ Bitcoin User Loses Record $1.1M in Scam Michael Saylor Giveaway - BeInCrypto] (Feb 4, 2022)</ref>
<ref name="themarketperiodical-6226">[https://themarketperiodical.com/2022/01/17/an-investor-lost-26-bitcoins-to-a-fake-giveaway-scam-pretending-to-be-hosted-by-michael-saylor/ https://themarketperiodical.com/2022/01/17/an-investor-lost-26-bitcoins-to-a-fake-giveaway-scam-pretending-to-be-hosted-by-michael-saylor/] (Feb 4, 2022)</ref>
<ref name="yahoofinance-6228">[https://ca.finance.yahoo.com/news/scammers-posing-michael-saylor-steal-090715365.html Scammers Posing as Michael Saylor Steal Over $1 Million Bitcoin - Yahoo Finance] (Feb 4, 2022)</ref>
 
<ref name="bloggoogle-6048">[https://blog.google/threat-analysis-group/phishing-campaign-targets-youtube-creators-cookie-theft-malware/ Phishing campaign targets YouTube creators with cookie theft malware - Google Blog] (Jan 26, 2022)</ref>
<ref name="beincrypto-6227">[https://beincrypto.com/bitcoin-user-loses-record-1-1m-scam-michael-saylor-giveaway/ https://beincrypto.com/bitcoin-user-loses-record-1-1m-scam-michael-saylor-giveaway/] (Feb 4, 2022)</ref>
<ref name="hitechglitz-6050">[https://hitechglitz.com/hackers-are-phishing-youtube-creators-to-steal-their-accounts-google-warns/ Hackers are phishing YouTube creators to steal their accounts, Google warns - HiTechGlitz] (Jan 27, 2022)</ref>
 
</references>
<ref name="yahoofinance-6228">[https://ca.finance.yahoo.com/news/scammers-posing-michael-saylor-steal-090715365.html Scammers Posing as Michael Saylor Steal Over $1 Million Bitcoin] (Feb 4, 2022)</ref>
 
<ref name="bloggoogle-6048">[https://blog.google/threat-analysis-group/phishing-campaign-targets-youtube-creators-cookie-theft-malware/ Phishing campaign targets YouTube creators with cookie theft malware] (Jan 26, 2022)</ref>
 
<ref name="hitechglitz-6050">[https://hitechglitz.com/hackers-are-phishing-youtube-creators-to-steal-their-accounts-google-warns/ Hackers are phishing YouTube creators to steal their accounts, Google warns] (Jan 27, 2022)</ref></references>

Revision as of 23:11, 3 September 2023

Notice: This page is a freshly imported case study from the original repository. The original content was in a different format, and may not have relevant information for all sections. Please help restructure the content by moving information from the 'About' and 'General Prevention' sections to other sections, and add any missing information or sources you can find. If you are new here, please read General Tutorial on Wikis or Anatomy of a Case Study for help getting started.

Notice: This page contains sources which are not attributed to any text. The unattributed sources follow the initial description. Please assist by visiting each source, reviewing the content, and placing that reference next to any text it can be used to support. Feel free to add any information that you come across which isn't present already. Sources which don't contain any relevant information can be removed. Broken links can be replaced with versions from the Internet Archive. See General Tutorial on Wikis, Anatomy of a Case Study, and/or Citing Your Sources Guide for additional information. Thanks for your help!

YouTube

A Coinbase customer was tricked into sending 26 BTC to a scammer who created a convincing-looking MicroStrategy website and live-stream on YouTube. There is no indication any funds were recovered. The specific website and channel were taken down within a few hours, however the scammers continue to break into more accounts.

The country for this case study is not yet known.[1][2][3][4][5][6][7][8][9][10][11][12][13][14][15][16][17][18]

About YouTube

"To begin with, we note that MicroStrategy is the largest crypto investor in the world. The company is developing software for data analysis using artificial intelligence algorithms. MicroStrategy turnkey solutions are used for business decision making and mobile software development."

"The company has more than 124,000 BTC worth over $5,000,000,000. Social media scammers introduced themselves as Michael Saylor and offered investors to double their investment. One gullible user "pecked" at the offer."

"Details from Scam Alert reported that this was a very effective ploy frequently carried out by scammers promising high returns on cryptocurrencies sent to their addresses using the faces of popular individuals. Furthermore, it was revealed that the 26 BTC was sent over five transactions."

“One of the most popular and effective types of scams in which the scammer promises to return multiple times the amount of cryptocurrency the victims sends to them. Giveaways scammers will pretend to be a famous person or to represent a trusted company in order to gain the victim’s trust and are mostly active on Youtube, Telegram and Twitter.”

"Speaking of the attacks, which he has been following for two years, Google says that fraudsters sent emails to content creators on YouTube with a proposal for cooperation. Once the channel owner agreed, the scammers sent a link to malware that appeared to be a legitimate URL." "Google provided an example of one of the phishing emails, and it shows that the hackers will ask the YouTube creator to try the product. In reality, the product is a ploy to trick the victim into installing malware on their computer."

"The attackers created more than 1,000 websites to increase the chances of fraud, including some that were presented as company sites that actually exist, including sites with Cisco VPN and Steam games. One of the websites was presented as a site with “Covid19 news software”. Google has linked to fraudsters about 15,000 accounts registered for this campaign alone and used to send phishing emails to YouTube channel owners, with links to victims to download malware."

"A payment of 26 #BTC (1,124,191 USD) was just made to a confirmed Michael Saylor Giveaway scam!" "It represents the single largest payment made to this kind of scheme."

"We suspect this payment was made through a #Coinbase address."

"Whale Alert reported the incident using their official Twitter handle at about 3 p.m. UTC, stating that a user had lost about 26 BTC to scammers that had created a fake giveaway posing as MicroStrategy head and Bitcoin Evangelist Michael Saylor."

According to Michael Saylor, "489 of these scams were launched on YouTube last week. We report them every 15 minutes and they are taken down after a few hours, but the scammers just launch more…" "According to the businessman, MicroStrategy is trying to track them and send complaints, after which YouTube removes the videos."

"YouTube has since shut down the channel operated by the scammers. The website has also stopped functioning and reports an error message when opened. The loss represents one of the largest single payments for this kind of scheme."

The country for this case study is not yet known.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

  • Known history of when and how the service was started.
  • What problems does the company or service claim to solve?
  • What marketing materials were used by the firm or business?
  • Audits performed, and excerpts that may have been included.
  • Business registration documents shown (fake or legitimate).
  • How were people recruited to participate?
  • Public warnings and announcements prior to the event.

Don't Include:

  • Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
  • Anything that wasn't reasonably knowable at the time of the event.

There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

The Reality

This sections is included if a case involved deception or information that was unknown at the time. Examples include:

  • When the service was actually started (if different than the "official story").
  • Who actually ran a service and their own personal history.
  • How the service was structured behind the scenes. (For example, there was no "trading bot".)
  • Details of what audits reported and how vulnerabilities were missed during auditing.

What Happened

The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.

Key Event Timeline - Michael Saylor Giveaway Scam
Date Event Description
January 15th, 2022 8:10:00 AM MST Main Event Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.

Technical Details

This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

Total Amount Lost

The total amount lost has been estimated at $1,124,000 USD.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Immediate Reactions

How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

Ultimate Outcome

What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

Total Amount Recovered

There do not appear to have been any funds recovered in this case.

What funds were recovered? What funds were reimbursed for those affected users?

Ongoing Developments

What parts of this case are still remaining to be concluded?

General Prevention Policies

Better education for new cryptocurrency users would be helpful. For example, a simple quiz to explain common types of scams. If this could be standardized, then users would do it once and it would apply to all platforms.

Platforms with delayed withdrawals who check outgoing addresses would also prevent this type of attack, as these types of scams are typically uncovered within a few hours.

Individual Prevention Policies

No specific policies for individual prevention have yet been identified in this case.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.

References

  1. ↑ The scammer who received the single largest payment of 26BTC has received a total of 87BTC. : CryptoCurrency (Jan 30, 2022)
  2. ↑ Can someone explain to me how people fall for scams like "Send crypto to this adress to double it"? : CryptoCurrency (Feb 3, 2022)
  3. ↑ @whale_alert Twitter (Feb 4, 2022)
  4. ↑ https://scam-alert.io/scam/1Dv4yeEEoWSsmRFzFsNu3J7eiTTiLU3LQF (Feb 4, 2022)
  5. ↑ Bitcoin Explorer - Blockstream.info (Feb 4, 2022)
  6. ↑ Address: 1Dv4yeEEoWSsmRFzFsNu3J7eiTTiLU3LQF | Blockchain Explorer (Feb 4, 2022)
  7. ↑ @saylor Twitter (Feb 4, 2022)
  8. ↑ 22 Best Valentine's Day Gift for Her and Him in 2022 (Feb 4, 2022)
  9. ↑ A User Lost $1.14 Million To Michael Saylor Giveaway Scam | CoinCodeCap (Feb 4, 2022)
  10. ↑ This Bitcoiner Just Lost 26 BTC Worth Over A Million Dollars To A "Michael Saylor Giveaway" Scam ⋆ ZyCrypto (Feb 4, 2022)
  11. ↑ Biggest giveaway CRYPTO of $100 000 000 (Feb 4, 2022)
  12. ↑ YouTube (Feb 4, 2022)
  13. ↑ A User Lost 26 Bitcoin To A Scammer Pretending To Be MicroStrategy CEO, Michael Saylor - The Crypto Basic (Feb 4, 2022)
  14. ↑ https://themarketperiodical.com/2022/01/17/an-investor-lost-26-bitcoins-to-a-fake-giveaway-scam-pretending-to-be-hosted-by-michael-saylor/ (Feb 4, 2022)
  15. ↑ https://beincrypto.com/bitcoin-user-loses-record-1-1m-scam-michael-saylor-giveaway/ (Feb 4, 2022)
  16. ↑ Scammers Posing as Michael Saylor Steal Over $1 Million Bitcoin (Feb 4, 2022)
  17. ↑ Phishing campaign targets YouTube creators with cookie theft malware (Jan 26, 2022)
  18. ↑ Hackers are phishing YouTube creators to steal their accounts, Google warns (Jan 27, 2022)
Retrieved from "https://quadrigainitiative.com/cryptocurrencyhackscamfraudwiki/index.php?title=Michael_Saylor_Giveaway_Scam&oldid=4982"