●In a fascinating twist on digital deception, scammers are flipping the script by targeting dishonest crypto enthusiasts with a new bait-and-switch strategy. According to a Dec. 23 blog post by Kaspersky analyst Mikhail Sytnik, fraudsters are posing as inexperienced users and sharing seed phrases of cryptocurrency wallets online. But these wallets, which appear to contain significant funds, are carefully crafted traps designed to outsmart would-be thieves.
One such wallet highlighted by Kaspersky reportedly held $8,000 in USDT on the Tron network. Scammers posted its seed phrase in YouTube comments under finance-related videos, claiming they needed help transferring the funds. Unsuspecting opportunists were lured into sending Tron (TRX) to the wallet to cover transaction fees, expecting to access the USDT.
However, these wallets are configured as multisignature wallets, requiring approvals from multiple parties to complete any transactions. Once the TRX is sent, it’s instantly transferred to the scammers' wallets, leaving the would-be thieves empty-handed and out of pocket.
Sytnik described these scammers as “digital Robin Hoods,” targeting those attempting to profit dishonestly. He warned against trying to access wallets using publicly shared seed phrases and urged caution when engaging with cryptocurrency-related claims online.
This isn’t the first scam to exploit opportunistic individuals. In July, Kaspersky uncovered a similar scheme on Telegram, where users were baited with fake vulnerabilities in crypto exchanges. That ploy aimed to install malware, leading to the theft of sensitive data and assets.
The lesson? Whether you’re a novice or a seasoned crypto user, greed can cloud judgment and lead to costly mistakes. In the fast-paced world of digital currencies, caution and integrity remain the best defenses against scams.
$BTC
#MarketRebound #Fraud_alert #fraudster #Alert🔴

The cryptocurrency market, known for its volatility, witnessed a historic and shocking event on November 23, 2024. Wrapped Bitcoin ($WBTC), an Ethereum-based token pegged to Bitcoin, experienced a massive price collapse in a matter of seconds, wiping out millions in capital and triggering stop-losses (SLs) across the board. Let’s break down what happened, why it happened, and the aftermath of this extreme move.

What is WBTC?

Wrapped Bitcoin (WBTC) is an ERC-20 token on the Ethereum blockchain that represents Bitcoin (BTC) on a 1:1 basis. It allows Bitcoin holders to participate in Ethereum's DeFi ecosystem, enabling faster transactions and liquidity in decentralized exchanges and lending platforms.
Each WBTC is backed by 1 BTC, held in reserve by custodians.
WBTC allows BTC to interact with smart contracts on Ethereum, creating additional financial opportunities.
However, the event on November 23 raised critical questions about liquidity, leverage, and large market players.

What Actually Happened❓❓

On November 23, 2024, WBTC’s price on Binance experienced an instantaneous crash from approximately $102,000 to around $5,200.

This unprecedented drop, nearly 95%, lasted for only a brief moment. Despite the quick recovery, the impact was catastrophic.
Here’s a breakdown of the event:
1. Initial Price: ~ $102,000.
2. Lowest Point: ~ $5,200.
3. Duration: Just a few seconds.
4. Recovery: WBTC swiftly returned to ~$102,000, but the damage was already done.

Why Did the Price Crash Happen? (The Catalyst: Coinbase Delisting WBTC)

A major event that contributed to the massive movement of WBTC on November 23, 2024, was Coinbase's announcement to delist Wrapped Bitcoin (WBTC). Coinbase stated on November 20 that trading for WBTC would cease by December 19, 2024, due to liquidity concerns. This announcement caused uncertainty in the market, leading to a flash crash where WBTC briefly fell below $6,000 on Binance, representing a nearly 95% drop in value before quickly recovering.

Additionally, the situation was exacerbated by competitive dynamics in the wrapped Bitcoin market. Coinbase introduced its own wrapped Bitcoin variant, cbBTC, creating tensions with WBTC's custodians and partners. There were also criticisms surrounding the lack of a proof-of-reserves process for cbBTC, adding to the market's instability.

Overall, the combination of Coinbase's delisting decision, concerns over liquidity, and rising competition in the wrapped Bitcoin market caused significant volatility for WBTC during this period.
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Impact on Investors And Traders
The WBTC crash had a ripple effect:
Millions of SLs Triggered: Stop-loss orders were executed at abnormally low prices, causing huge losses.
Liquidation of Leveraged Traders: Traders who borrowed heavily on margin saw their positions wiped out.
Washed Out Big Players: Investors with positions at key levels, such as $25,000 and $49,000 (shown on the chart), were caught off-guard.

Key estimates:
Capital Lost: Billions of dollars in liquidations.
SL Levels Triggered: Investors at support levels (~$49,000 and ~$25,000) saw their trades forcibly closed.

How Did This Happen in Seconds❓

The speed of the crash can be attributed to:
Market Leverage: High leverage increases the fragility of the market.
Stop-Loss Chain Reaction: Once key price levels break, automatic sell-offs drive prices lower rapidly.
Lack of Liquidity: Market depth was insufficient to absorb the sell pressure.
Algorithmic Trading: Bots exacerbated the fall as prices plummeted.
The WBTC flash crash on November 23, 2024, serves as a reminder of the risks associated with crypto trading. While the price recovered quickly, millions of retail and institutional investors suffered immense losses. Such events highlight the importance of risk management, avoiding high leverage, and understanding the role of liquidity in trading.
Did WBTC expose the fragility of DeFi or was this a targeted move by big players?

#btc #WBTC #marketcrash #Alert🔴 #NewsAboutCrypto