$3.3 Million Lost in Bitcoin Gold Wallet Scam

Investors wanting to claim share of the newly created cryptocurrency bitcoin gold, fell victim to an elaborate scam where $3.3 Million was stolen. The scheme instructed users to submit their private keys or recovery seeds as a way to create bitcoin gold wallets. Soon after users completed the set of instructions, the cryptocurrency holdings in their wallets were sent to different addresses. According to numbers verified by CoinDesk, at least $30,000 in ethereum, $72,000 in litecoin, $107,000 in bitcoin gold and more than $3 million in bitcoin were confiscated. Victims blamed the association of the false website with the official bitcoin gold project, as the main source of effectiveness of the scam.

Developer of the scam website possessed a user name of John Dass, however it is unclear whether it is the developer’s actual name or not. Edward Iskra spokesperson for Bitcoin Gold stated, “The investigation increasingly indicated that the original developer, ‘John Dass,’ was responsible for the fraud all along … He has dropped out of touch with us, as well.”

Representatives from bitcoin gold immediately launched an internal investigation after first word of the incident. In a published statement, Bitcoin Gold developers said they were “working with security experts to get to the bottom of this issue,” but did not clarify who these experts were. The bitcoin Gold team will make another announcement after the investigation within the next few days.

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