PanaTimes

Sunday, May 28, 2023

Crypto Scammers Rip Off Billions as Pump-and-Dump Schemes Go Digital

Crypto Scammers Rip Off Billions as Pump-and-Dump Schemes Go Digital

You remember The Money Chant: Matthew McConaughey thumping his chest, talking fools and money before - sniff! - a little lunchtime “tootski.”
Titan Maxamus has been there. Well, not there, in a “Wolf of Wall Street”-style boiler room. There on the other side — as the mark. Titan Maxamus knows the game. All the brazenly cynical players do. In Scorsese’s cinematic bender of sex, drugs and stocks, it’s called the pump and dump. In today’s cryptocurrencies, it’s known as the rug pull.

Maxamus thinks he got rug-pulled the other month in some sketchy digital token called — wait for it — Safe Heaven. Like countless dreamers in today’s memeified markets, he’s been gambling $50 here, $100 there on what are known as Shit Coins, obscure digital something-or-others being minted by the thousands. This stuff makes Bitcoin look good as gold.

One moment, Safe Heaven was flying. The next, it was crashing. Maxamus (that’s his online persona. His real name is Glenn Titus), can’t prove anything. But he suspects what, in retrospect, seems forehead-slappingly obvious: some small-time hustler created Safe Heaven with a few deft keystrokes, hyped the hell out of it — and promptly cashed out. Telegram, a popular instant messaging app that’s become a major crypto boiler room, immediately fell silent. The Safe Heaven Telegram group, once thronging with rocket emojis and Elon Musk GIFs, was deleted. The Safe Heaven Twitter account hasn’t been updated since May 28.

“Everybody I know has gotten rug-pulled,” says Titus, a 38-year-old butcher in Salem, Oregon. “You know, you win some, you lose some. Hopefully, win more than lose.”

It might sound like a joke, given the crypto meltdowns of late, but serious money is at stake here. Billions — real billions — are getting pilfered annually through a variety of cryptocurrency scams. The way things are going, this will only get worse.

Back in the Wall Street Dark Ages — six, 12, 18 months ago — these sorts of shenanigans were mostly associated with shlocky brokerages like the one depicted in the 2013 Wolf. In those halcyon days before GameStop, Dogecoin and the rest, schlubs on Long Island might pitch ridiculous over-the-counter stocks to the gullible.

Nowadays crypto hustlers and star-gazers like Titan Maxamus have established a weird symbiotic relationship. It seems to capture everything that’s gone wrong with money culture, from Reddit-fueled thrill-seeking to conspiracy theorizing to predatory wheeling-dealing. The rug pull is only one play. There’s also the gentler soft rug, the crypto version of getting ghosted on Hinge. And the honey pot, which functions like a trap. Old-fashioned Ponzi schemes, newly cryptodenominated, have swindled people out of billions too.

At times the result can start to resemble the Agatha Christie mystery classic “Murder on the Orient Express”: The who in this dunnit is somehow everyone. Grifters will grift. But like Maxamus, many marks actually expect to get snookered once in a while. Both sides, the swindler and the swindled, are in on this one. Elaborate social-media systems have sprung up to flag potential trouble, not only to avoid it but maybe even to profit from it.
Newsletter

Related Articles

PanaTimes
Close
0:00
0:00
Pfizer, the EU, and disappearing ink - Smoke, Mirrors, and the Billion-Dose Pfizer Vaccine Deal: EU's 'Open Secret
Actor Tom Hanks told Harvard University graduates to be superheroes in their defense of truth and American ideals, and to resist those who twist the truth for their own gain
The Sussexes' Royal Rebound: Could Harry and Meghan Markle Return to the UK?
A provocative study suggests: Left-Wing Extremism and its Unsettling Connection to Psychopathy and Narcissism
France Arrests 10 on Suspicion of Failing to Respond in Time to Migrant Drowning
Neuralink Receives FDA Approval for First-in-Human Clinical Study
Saudi Arabia and Canada Restore Diplomatic Relations
Bernard Arnault Loses $11.2 Billion in One Day as Investors Fear Slowdown in US Growth Will Reduce Demand for Luxury Products
Russian’s Wagner Group leader: “I am not a chef, I am a butcher. Russia is in danger of a revolution like in 1917.”
TikTok Sues Montana Over Law Banning the App
Ron DeSantis Jumps Into 2024 Presidential Race, Setting Up Showdown With Trump
Last Walmart in North Portland Closing Down
Florida's DeSantis seeks to disqualify judge in Disney case
Talks between US House Republicans and President Biden's Democratic administration on raising the federal government's $31.4tn debt ceiling have paused
Disney has canceled plans to build a new campus in Florida worth almost $1 billion
Biden Administration Eyeing High-Profile Visits to China: The Biden Administration is heating things up by looking into setting up a series of top-level visits to Beijing by top officials in the coming months
New evidence in special counsel probe may undercut Trump’s claim documents he took were automatically declassified
A French court of appeals confirmed former President Nicolas Sarkozy's three-year jail term for corruption and influence peddling
Debt Ceiling Crises Have Unleashed Political Chaos
Weibao Wang, a former software engineer at Apple, was charged with stealing trade secrets related to autonomous systems, including self-driving cars
Mobile phone giant Vodafone to cut 11,000 jobs globally over three years as new boss says its performance not good enough
Elon Musk compares George Soros to Magneto, the supervillain from the Marvel Comics series.
Warren Buffett Sells TSMC Shares Over Concerns About Taiwan's Stability
New Study Finds That Secondary Bacterial Pneumonia Is a Major Cause of Death in COVID-19 Patients Who Require Ventilator Assistance
King Charles III being crowned.
'Godfather Of AI' Geoffrey Hinton Quits Google To Warn Of The Tech's Dangers
A Real woman
Vermont Man Charged with Stalking After Secretly Tracking Woman with Apple AirTag
Elon Musk Statements About Tesla Autopilot Could Be 'Deepfakes,' Lawyers Claim. Judge Evette Pennypacker Does Not Understand How Far and Advanced This Technology Became
Ukraine More Prepared for Counterattack as Reinforcements Arrive
UK Prime Minister Rishi Sunak and Italian Prime Minister Giorgia Meloni Discuss Migration, Defence, and Ukraine
Tucker Carlson is back, soon!
AT&T's Successful Test of Satellite-Based Phone Call Raises Possibility of Widespread Coverage
CNN: "Joe Biden is asking for four more years — when 74% of Americans think the country is heading the wrong way“
Turkish President Recep Tayyip Erdogan Cuts Short Live TV Interview Due to Health Issue
US Congresswoman threaten Twitter Files journalist with arrest
Pulitzer Prize-winning journalist Seymour Hersh slams New York Times' pro-government stance and treatment of sources
Enough is enough: it's time to end the war in Ukraine. While Russia may be to blame for starting it, Russia is not the one refusing to stop it
Fox News Settles their case with Dominion Voting Systems for a staggering $787.5 MILLION
The land of the free violence
Speaker Kevin McCarthy
21-year-old Massachusetts Air National Guard member Jack Teixeira has been arrested for leaking classified Pentagon Documents
The Supreme Court will allow a 12-year-old transgender West Virginia girl to compete on her middle school’s girls' sports teams amid a lawsuit over a ban
Iran and Saudi Arabia hold first diplomatic talks in seven years, brokered by China
Bank of America cuts short conference after outrage at Ukraine comments
Mitt Romney calls Trump indictment 'overreach,' says charges were 'stretched' to suit a 'political agenda'
The G-7 aims to make global crypto regulations tougher
Russia arrested an American reporter for the Wall Street Journal on espionage charges
Don’t Dismiss China’s Peacemaking Bid
China and Brazil have signed a new deal that will allow them to trade in their own currencies, bypassing the US dollar as an intermediary
×