Scams involving cryptocurrency are nothing new. As the crypto sector matures, scams become more difficult to detect and even more difficult to prosecute. Because crypto-related rules and policies are still being developed, scammers are becoming more daring in their attempts to deceive investors.
From Telegram channels that artificially raise the price of any cryptocurrency to slick scammers posing as YouTube crypto experts, crypto scams are becoming more sophisticated by the day. And they’re not afraid to show it. So much so that cryptocurrency frauds peaked in 2021, involving severe crimes such as money laundering.
However, it is the pesky low-key cryptocurrency frauds that frequently go unreported until they explode into something disastrous. At CP, we believe it is critical to uncover frauds before they become an industry-wide fraud.
Mikey is one such crypto scammer operating under the guise of the YouTube channel ‘The Crypto Room.’ As with every other fraud, the person creates random crypto-related films covering useless issues with crypto jargon. Mikey poses as a cryptocurrency expert and utilises clickbait-laden videos to entice a naive audience. On the surface, his channel appears to strive to provide insight into the crypto world with daily news, industry updates, and financial advice. Mikey wants to teach his audience everything they need to know about cryptocurrency.
His true goal, however, is to direct viewers to his fraudulent enterprises, which frequently involve ludicrous returns. This appears to be standard, but let’s delve into some specifics to spice things up.
The Crypto Room has all of the hallmarks of a fraud. To begin, there is a self-proclaimed crypto master who talks about coins in minute detail. Second, the coins are frequently relatively unknown or newly announced products, and he includes extraneous information that serve only to entice viewers without providing any actual support. Third, Mikey entices the audience with ridiculous investment recommendations promising incredible profits in a short amount of time in the same fly-by-night crypto currencies.
And, as if that weren’t enough, his videos frequently end with unrealistic investment pitches, which are indicative of a pyramid-marketing fraud model.