It sounds like an SNL skit, but it isn’t funny for the would-be investors who were robbed over $2 million. During a much-anticipated SNL appearance byTesla CEO billionaire Elon Musk, cybercriminals pretending to be him offered fake giveaways on social media. All participants had to do was send him some cryptocurrency. The result was a high-profile crypto scam

Unfortunately, many fans of SNL, Elon Musk, and cryptocurrencies took the bait and sent money in the form of cryptocurrency, believing claims they would get up to tenfold returns on the initial amount. The total reported losses were $2 million, but it is estimated that there may have been over $5 million lost. This is not surprising, since many people who are victims of forex trading scams and crypto scams do not report, which is a mistake. 

It is important to report forex trading scams, crypto scams, or any other type of fraud. This is the only way authorities can catch the cybercriminals, prevent them from striking again, and start the fund recovery process.

Cryptocointrace experts can provide you with assistance if you have been affected by a scam. Our team of researchers knows what to look for when investigating frauds. We can provide you with information and guidance through our intelligence reports that will help you get results. Contact our Cryptocointrace professionals today for a consultation. 

What Happened With the SNL Elon Musk Crypto Scam? 

Basically, people thought that Elon Musk, who was appearing on SNL, initiated a promotion for viewers through social media. There were various deals, some promising to return ten times the original amount of cryptocurrency participants would send. 

Even though the mechanism of the deals were not explained, including when the return for the initial funds would arrive and why something that was supposed to be a giveaway was asking for crypto coins in the first place, many people sent money to various addresses online. 

The amount of between $2 million to $5 million in losses may seem modest except when taking into account this occurred during the screening of SNL, a show which is typically just 90 minutes long. Now, many of the victims are asking the FTC to help them with fund recovery. However, it is assumed there are many more victims who will not come forward. 

Why Elon Musk? 

Elon Musk, at least until very recently, has been an outspoken proponent of cryptocurrencies. His $1.5 billion investment in bitcoin in early spring 2021 led to a rally in the value of bitcoin and a scramble among consumers to get in on the next cryptocurrency deals. 

However, as high-profile figures such as Bill Maher criticized cryptocurrencies for using up significant amounts of electricity and not being as green as once supposed, Elon Musk announced that bitcoin would not be used as payment at his company Tesla. As a result, bitcoin fell below its $50,000 support level just 24 hours after the announcement. 

Elon Musk has proven he can single-handedly move the cryptocurrency market. However, it is clear that those who were targets of the SNL social media crypto scam had not gotten the memo on Elon Musk’s change of position on bitcoin or perhaps they believed he was changing his mind again, was now open to accepting cryptocurrency, and they wanted to be the first to get in on another huge Musk-led crypto coin market move. 

How Is the Musk SNL Crypto Scam Like Other Celebrity Social Media Crypto Scams?

Unfortunately, this isn’t the first and won’t be the last celebrity social media crypto scam. Early in 2021, a 17-year-old hacker accessed the actual accounts of Bill Gates and Barack Obama with a promise to match those donations given through cryptocurrency. 

The 17-year-old hacker was caught, but cybercriminals find they can make millions without having to hack into actual accounts. It is relatively easy to create convincing decoy celebrity accounts. The Musk SNL appearance provided a perfect storm for crypto fraudsters capitalizing on the popularity of Musk in general and the buzz over his SNL appearance specifically. 

Also, these social media crypto scams often create a false sense of haste. This is so they can get the money and disappear fast. Designing the scam around the run of the SNL show meant that the scammers could make millions in just over an hour. 

How to Avoid Social Media Crypto Scams

The best way to avoid social media crypto scams is never to trade, invest or participate in any giveaways on social media. Twitter, Facebook, and Instagram are great places to trade recipes and photos of pets. Do not believe in any money-making schemes advertised on social media. If you want to trade, find a regulated broker. 

Another tip is to use cryptocurrency with care. Although digital currency is exciting, it does carry certain danger, since it is not managed through government regulations and transactions are anonymous. Avoid making payments in cryptocurrencies unless you have fully validated the identity of the other party. 

Also, use your logic. The first question anyone should have asked in the SNL Elon Musk scandal is why do people need to give money in the first place? If Elon Musk wants to give people money, he should just do it. Is this a trade? What is being traded? How does it work? Is there a website explaining this? Lack of transparency and an exaggerated sense of haste are hallmarks of forex trading scams and crypto social media scams. 

What to Do If you Have Lost Money in a Social Media Crypto Scam

Do not be shy about reporting any kind of fraud. This goes for a forex scam or a social media crypto scam. Many people are too embarrassed to admit they were cheated or feel that fund recovery is a long shot. However, filing a complaint is the responsible and smart thing to do. 

Have You Been Affected by a Crypto Scam? Talk to Cryptocointrace Professionals! 

If you have lost money of a crypto scam or forex trading scam talk to Cryptocointrace today. Our team has the expertise and knowledge as well as tools to perform in-depth research. We are skilled at investigating all types of financial services and have extensive experience in the financial industry. We will help you get results for your claim and resolve your complaint or dispute.