Crypto Scams Like the Huobi Arbitrage Scheme Make A Comeback After Bitcoin Massive Price Increase
- Crypto scams affect Chinese Telegram users and Ethereum investors
- As the market continues expanding new scams enter the space to steal users’ funds
As the price of the most popular virtual currency continues growing, several scams are affecting users and the whole space. There are several Telegram users that have fallen prey to the “Huobi HT arbitrage” scam. This is according to a recent report released by the platform CoinHunter.
Crypto Scammers Target Chinese Investors on Telegram
The crypto scammers are currently focusing on attacking Chinese investors using Telegram, which is very important for Chinese traders due to the current ban that cryptocurrencies experienced in the country. There is a Telegram group that is called “Huobi Global official risk-free arbitrage group (Chinese)” that there are some users that impersonated staff of the leading crypto exchange Huobi Global. Users were induced to move ETH into a specific wallet and promised them HT coins.
It is worth mentioning that HT is not the coin Huobi Token, the digital asset that was created by the crypto exchange. Users were receiving this HT coin with the promise to have more ETH after exchanging it.
CoinHunter suggests that the Huobi arbitrage scam was able to gather 15,000 ETH from users in China. There were users that have been scammed even twice.
Huobi informed users about the situation that many individuals were experiencing with the Telegram group. The exchange informed that they were not going to be asking for users’ passwords, short message code or Google Authenticator code, among other information. In addition to it, they said that they have never launched a “risk-free arbitrage” campaign for users to earn
Arbitrage is a practice that allows traders to buy a digital asset in one platform and sell it in another for a higher price. This can also be performed in other markets rather than just in the crypto space. In China, users were performing arbitrage trades by purchasing Bitcoin in an open market and selling it face-to-face using a peer-to-peer exchange such as Taobao to trade over the counter at a higher price.
In China, cryptocurrency trading activities have been banned by the government that wants to have control over the activities that their citizens perform. There have been different scams in the cryptocurrency space, including thefts and other fraudulent schemes.
For example, the cryptocurrency exchange Bitsane has scammed users by closing its operations without giving users their funds back. According to a recent report released by Forbes, as many as 246,000 users have been affected by this exist scam.