250 UK Victims Lose $650K in Fake Bybit Demo Account Scam by ‘Ape 31’

• The UK recently faced a significant crypto scam involving over 250 victims who lost a combined $650,000 through fake Bybit demo accounts.
• This scam was orchestrated by an individual who operates under the alias “Ape 31,” who has evaded capture by frequently changing deposit addresses.
• The continued wave of crypto hacks in 2024 saw losses amounting to $409 million, affecting multiple platforms such as Bybit, BingX, and Banana Gun.

Discover the latest in crypto frauds as we delve into the alarming rise of crypto hacks, with notable cases like the Bybit demo account scam and other significant breaches.

UK Targets Taken for $650K in Bybit Demo Account Scam

In recent months, the UK has witnessed a surge in crypto-related scams, with over 250 individuals falling prey to a fraudulent scheme involving fake Bybit demo accounts. The scam, executed by the elusive “Ape 31,” lured victims by promising easy returns and genuine trading experiences. Comprehensive analysis by blockchain specialist ZachXBT revealed the extent of the scam through the study of 16 exchange deposit addresses associated with the fraud. As these deposit addresses frequently changed, tracking the pilfered funds has been exceedingly challenging.

Modus Operandi of Ape 31’s Scheme

Notably, Ape 31’s scheme involved the constant rotation of deposit addresses, a tactic that complicates the effort to measure the scam’s full impact. While the currently estimated losses stand at $650,000, the actual figure might be significantly higher due to ongoing evasion efforts. ZachXBT has escalated his findings to law enforcement, hoping to trace Ape 31’s movements and prevent further scams. Particularly, the fraudster leveraged platforms like fake Bybit accounts to showcase enticing profit and loss screenshots, thereby attracting unsuspecting users.

Broader Trends: Surge in Crypto Hacks

The Bybit scam is part of a broader wave of cryptocurrency-related crimes plaguing the industry. Recently, the BingX exchange experienced a substantial breach, resulting in the theft of over $43 million worth of altcoins. The attacker converted these assets into Ethereum (ETH) and Binance Coin (BNB), making recovery efforts exceedingly difficult. This breach marks one of the most significant crypto hacks in recent times, highlighting the vulnerabilities within the crypto ecosystem.

Banana Gun Protocol Breach

Another notable incident involved the Banana Gun protocol, where attackers siphoned off $3 million. Unlike many other victims, the Banana Gun team has committed to reimbursing the 11 affected users from their treasury, showcasing a proactive approach towards addressing the hack. These sequential events underline the pressing threat posed by coordinated crypto hacks targeting both centralized and decentralized financial systems. Data from Immunefi indicate that, in total, crypto-related security breaches have led to a staggering $409 million in losses just in the third quarter of 2024.

Conclusion

The recent wave of crypto scams and hacks underscores the critical importance of enhanced security measures and due diligence for investors. From the Bybit demo account fraud to significant breaches affecting platforms like BingX and Banana Gun, the cryptocurrency landscape remains fraught with risks. As these incidents continue to unfold, maintaining vigilance and adopting sophisticated security protocols are paramount for protecting assets in the ever-evolving digital finance world.