As the cryptocurrency market is booming, more and more investors choose to buy and sell cryptocurrencies through over-the-counter (OTC) transactions. Although OTC transactions provide users with a flexible and convenient way, they also hide many risks. The following is a typical case of OTC fraud. Bitconglin assisted the police in solving the case and successfully recovered the defrauded assets. We hope it can sound a warning to investors.

Case Background

A is a young man who is keen on cryptocurrency investment. In order to pursue higher profits and lower fees, he decided to try over-the-counter (OTC) trading. In a cryptocurrency investment group, he saw an attractive advertisement in which a person who called himself "agent B" posted information about selling Bitcoin at a price lower than the market price.

The first transaction: the beginning of trust

A contacted B, who acted very professionally and provided detailed identity verification information, including his ID card, work permit, and screenshots of multiple successful transactions. A decided to test the waters with a small amount of money first, and after the other party agreed, he transferred 10,000 RMB. A received the corresponding bitcoins in his wallet a few minutes later. The successful completion of the first transaction made him trust B.

Building Trust: Multiple Small Transactions

In the following days, A conducted several small transactions, ranging from a few thousand to tens of thousands of yuan each time, and each transaction went very smoothly. B not only responded quickly, but also took the initiative to provide market analysis and investment advice. Through these interactions, A gradually deepened his trust in B and believed that he was an honest and reliable intermediary.

Large Transactions: Falling into the Trap

After several successful small transactions, B suggested A to conduct a large cash transaction, on the grounds that the recent Bitcoin price fluctuations could be used to arbitrage. B suggested that since the trust foundation had been established, half of the transaction could be paid in cash first, and the rest in cash could be paid after receiving the Bitcoin. After careful consideration, A decided to accept the proposal. He gave B several hundred thousand yuan in cash and waited for the Bitcoin to arrive. B sent a portion of the Bitcoin as promised, and after A confirmed it, he suggested continuing the transaction with a larger amount of money.

Scam exposed: Fraud gang flees

During the on-site transaction, A handed over a large amount of cash to C and three others designated by intermediary B. C and others claimed that the transaction had been completed and wanted to leave with the money. However, A only received a small portion of the bitcoins remitted to his account by intermediary B. A asked for confirmation that the remaining bitcoins had been received before the three of them could leave, but B did not remit the remaining large amount of bitcoins to A.

Seeing that the fraudulent money was in their hands, C and others used violence to control A and helped their accomplices take the opportunity to escape with the money.

A immediately reported the case to the police. However, as the funds had been quickly transferred and laundered, the hope of recovering them was very slim.

BitJungle intervenes: technical breakthrough, assisting in recovering fraudulent assets

When the case got into trouble, the police contacted BitJungle, a company that focuses on blockchain security and has rich experience in security research, as well as advanced blockchain technology analysis and data mining capabilities. By using the Zhong Kui traceability system developed by BitJungle, the police quickly locked down the flow of B's ​​funds.

Through the analysis of the Zhong Kui traceability system, the whereabouts of the stolen funds were successfully tracked, and after further investigation by the police, the suspects were finally identified. With the arrest of these suspects, the victims were finally able to recover most of the stolen funds.

Precautions

A's experience reminds us that in transactions involving large amounts of money, no matter how trustworthy the other party seems, we must remain vigilant. Choose formal platforms and channels to conduct transactions to ensure the security and legality of transactions. At the same time, strengthen your own security awareness to avoid falling into similar scams. Through this case, I hope that more coin holders will be more vigilant, protect their assets, and stay away from traps in OTC transactions. Although OTC transactions are flexible, the risks involved cannot be ignored. Investors should choose trustworthy platforms and intermediaries, stay vigilant at all times, and ensure the safety of their own funds.

The intervention of BitJungle not only helped A recover most of his losses, but also demonstrated its professional strength in the field of blockchain security, and interpreted what "technology for good" means with practical actions. We are always the most solid backing in maintaining the security of cryptocurrency and combating crime. BitJungle will continue to escort the security of the cryptocurrency market. If you encounter any security issues in blockchain transactions, or need professional security services, please feel free to contact us.