Subnostr

⚠️Scamming by Sharing 12-Word Seed Phrases⚠️

If you are a content manager or regularly browse social media, you might have seen comments resembling this format:

"Thanks for sharing such valuable information! A bit off-topic, but I wanted to ask: My OKX wallet holds some USDT, and I have the seed phrase ([seed phrase here]). What's the best way to send them to Binance?"

This type of message is not a cry for help—it’s a carefully crafted trap. To avoid becoming a victim, always remember the golden rule: there is no free lunch.

How Does the Scam Work?

At first glance, it seems puzzling—why would someone willingly post their wallet’s seed phrase, a crucial key to their funds? Isn’t sharing it the ultimate taboo in cryptocurrency security? The truth is that these scammers are banking on your greed and lack of caution.

Here’s how the scam unfolds:

The Setup:

The comment implies that there is free money (e.g., 500 USDT) sitting in the scammer's wallet, which they are too inexperienced or unable to transfer themselves. The seed phrase gives you access to this wallet, tempting you to retrieve the funds.

The Gas Fee Trap:

Transferring tokens, such as USDT, from one wallet to another requires gas fees, which must be paid in the cryptocurrency native to the token's network. For example:

Ethereum network: Gas fees are paid in ETH.

Tron network: Gas fees are paid in TRX.

Solana network: Gas fees are paid in SOL.

The scammer’s wallet conveniently lacks the required cryptocurrency to pay these gas fees. They rely on you to fund the wallet with the necessary tokens to complete the transfer.

The Sting:

Thinking you’re about to "unlock" the 500 USDT in their wallet, you transfer a small amount of cryptocurrency (e.g., $10 worth of TRX) to cover the gas fees. However, the wallet is controlled by an automated bot (though it doesn’t have to be). As soon as your transaction is received, the bot instantly sweeps the funds to another wallet—one that you have no access to.

The Loss:

You lose the cryptocurrency you transferred for the gas fee. While the individual amount might seem small, if enough people fall for the scam, the fraudsters rake in significant profits.

Why This Works

This scam exploits basic human psychology:

Greed: The promise of free money clouds judgment.

Urgency: The fear that someone else will claim the "free funds" first pressures victims to act quickly.

Lack of knowledge: Not everyone understands gas fees or how wallets and seed phrases work.

Red Flags to Watch Out For

Public Seed Phrases: Legitimate users never share their seed phrases publicly. Anyone who does is either lying or completely reckless (and likely a scammer).

“Too Good to Be True” Offers: Free money claims are almost always scams, especially in the cryptocurrency world.

Urgency and Scarcity Tactics: Messages designed to make you act without thinking are a classic scam strategy.

What You Should Do

Ignore and Delete: If such a comment appears under your YouTube video or social media post, don’t engage. Delete the comment immediately to protect others.

Educate Your Audience: Warn your followers about this type of scam so they can recognize it and stay safe.

Stay Skeptical: Never rush into any deal involving cryptocurrency, especially one promising free money.

The Takeaway

Cryptocurrency scams like this rely on greed, ignorance, and urgency. By understanding how they operate, you can protect yourself and others. Always remember: if it seems too good to be true, it probably is.

Replying to

Ken Berry, MD

I'm gonna buy when Cramer-dip kicks in!