VC Firm Electric Capital Warns Crypto Community About New Disguised Crypto Scam

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By BitcoinWiki News

Key Takeaways:

– Avichal Garg warned investors about potential disguised crypto scams targeting Electric Capital
– Scammers are pretending to be representatives of Electric Capital and asking individuals to send money before investing
– Electric Capital clarified that they will never ask for money in advance and only communicate through their official channels
– Social engineering scams, including phishing and pretexting, are on the rise in 2023
– Scammers disguise themselves as Electric Capital, conduct diligence, and lure victims to become limited partners in a bogus “Electric” fund
– Garg’s warning comes after a SIM swap attack on the smart contract security marketplace Code4arena’s X account
– Hackers posted a scam airdrop on Code4arena’s account, claiming endorsement by VC firm Paradigm
– Garg emphasized the importance of being cautious and avoiding potential crypto scams, especially during the next bull market.

Avichal Garg, co-founder of Electric Capital, warned investors of a potential crypto scam where scammers impersonate the company and ask for money before investing. Garg emphasized that Electric Capital would never ask for money before receiving an investment and is working on additional verifications on social media channels to prevent impersonation. The scam involves scammers conducting actual diligence and luring victims to become limited partners in a bogus “Electric” fund. Garg’s warning comes after an increase in social engineering scam tactics in 2023, and shortly following a SIM swap attack on another crypto marketplace.

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