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Crypto Businesses Lose Over $ 300,000 in New Bitcoin Cam, Be Careful!

  • Mike Pazuki – CEO of RMTX shares the full details of how his project suffered as a result of a recent Bitcoin scam.
  • Read below to find out just how well the scammers managed to seal all the funds.

As the Bitcoin ecosystem continues to expand, the number of Bitcoin scams has increased at the same time. Cryptocurrency startups have recently become victims of Bitcoin scams and lost hundreds of thousands of dollars. Three of these crypto startups that have been victims of the scam are RematicEGC (RMTX), Taboo token (TABOO), and InstantXRP (INSTANT XRP).

Mike Pazuki – CEO of RMTX – recently shared the details of how they suffered as a victim of the Bitcoin scam. He recalled that two people were contacted on LinkedIn claiming to be investors. Expressing interest in your project, these two have submitted a $ 500,000 investment offer.

Later, Pazuki and his team investigated these two, «and everything seemed to be proven,» he said. They were also able to identify the investment firm allegedly exposed by the scammers. Pazuki and the team later concluded that they only needed $ 300,000 to fund the development of their proposed app.

The nature of the Bitcoin scam

The scammers agreed to establish a $ 300,000 trade worth of Bitcoin against dollars equivalent to RMTX tokens at the current market price. That equated to 7.18 Bitcoin for 23,166,023,166,023 RMTX. At the request of the scammers, Pazuki created Exodus wallet to carry out the Bitcoin transaction.

Later, during a live zoom call, each of these two scammers made an initial test transfer of $ 1,000 worth of Bitcoin for 77.3 billion RMTX. On confirmation from both parties, Pazuki received a «visual acknowledgment» when he transferred the remaining 7.12 BTC. He subsequently transferred the remaining 19.9 billion RMTX to the wallet of the scammers.

But after transferring the RMTX tokens, Pazuki later realized that the 7.12 Bitcoin transaction had been «destroyed» and annulled. The scammers later abandoned this call taking their initial Bitcoin holdings along with the RMTX tokens.

The CEO later admitted that he must have hurried to get the money for the project. Speaking to CryptoAdventure, he added:

This was an unnecessary risk and I have no intention of apologizing for it. I should be much worse off in my approach to getting these funds. This is a mistake that will not be repeated.

The RMTX team has documented the identity of the scammers and filed a complaint with the FBI.

But aren’t Bitcoin transactions irreversible?

Unlike banking transactions, we know that Bitcoin transactions are irreversible. However, the scam must already have a subtle transaction reversal mechanism in place. There is no record of a second transaction of 7.12 BTC, which means that the blockchain never confirmed it.

Another thing is that Exodus is a non-custodial wallet, so the funds could not be returned by a third party. So the fraudsters may have provided an acknowledgment for a low-cost transaction before it was settled on the blockchain.

They could then invalidate this transaction by replacing it with self-transfer using the same funds. If the last transaction had a higher fee, the miners would have processed this transaction, invalidating the first one.

Shortly after the fraudsters obtained the RMTX signals, they dumped them on the open market. This caused a huge drop in the price of RMTX last Friday, which is now fully recovered.

Javier Marquez

Javier Marquez has been closely following the development of bitcoin and blockchain technology since 2017. Since then, he has been working as a columnist, reporting on the ups and downs, implications and developments of the cryptocurrency market. He believes that cryptocurrencies and blockchain technology will have a huge positive impact on people's lives.

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