We recommend caution when dealing with entities promoting cryptocurrency ‘sniping bots’ or ‘Maximal Extractable Value (MEV) bots’. We have received a report of Youtube videos promoting these bots as part of a scam.
How does the scam work?
- Scammers create Youtube channels and publish videos promoting cryptocurrency ‘sniping bots’ or ‘MEV bots’. The videos claim that these bots can exploit arbitrage opportunities in cryptocurrency, allowing users to generate a risk-free passive income from their cryptocurrency holdings.
- These videos often feature AI-generated voiceover and images, which allows the scammers to quickly publish multiple videos.
- The videos will usually include unrealistic promises about profits, often claiming that users can earn over $1,000 per day from a relatively small cryptocurrency holding.
- The videos will usually claim that the bot will only work if linked to a cryptocurrency wallet containing at least a certain amount of cryptocurrency. This is a tactic used to encourage victims to invest significant amounts in the scam without first testing the investment with a smaller sum.
- The videos encourage viewers to activate the bot by downloading then executing code, which is linked in the video’s description. The code is designed to appear as though it will allow the victim to withdraw their funds at any time. However, the code will hide the details of another cryptocurrency wallet, which is controlled by the scammer.
- Once the victim runs the code and enters the details of their cryptocurrency wallet, the contents of the wallet will be transferred to the scammer.
We have received reports of these videos being advertised to New Zealand investors.
Cryptocurrencies are often the target of hacking, online fraud and scams, and where cryptoassets have been lost to a scam they are often impossible to recover. For your security, exercise extreme caution when disclosing the details of your wallet or encryption keys.
