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Abstract: This paper analyses and investigates a cryptocurrency investment scam involving the suspicious and fraudulent cryptocurrency trading platform, Elite-Bit, through a detailed case study of a victim's experience. With the rapid rise of cryptocurrency, deceptive platforms like Elite-Bit exploit unsuspecting investors by presenting a façade of legitimacy. This case study chronicles the victim's journey, beginning with a seemingly romantic connection through a dating platform, to an introduction to an investment opportunity, and subsequently a financial loss. After investing a substantial amount, the victim faced unexpected barriers when attempting to withdraw funds, including exorbitant transaction fees and other fabricated costs. The analysis reveals how Elite-Bit employs manipulative tactics such as social engineering and false urgency to maintain control over investors, ultimately leading to significant financial loss. These manipulative tactics are referred to as pig butchering. The paper utilises qualitative data from interviews and correspondence with the victim, along with an examination of platform behaviours to highlight common patterns in cryptocurrency scams. An on-chain and off-chain analysis was conducted using the limited input data provided by the victim. To contextualise the collected information, a link analysis was done, utilising the tool Maltego. The link analysis visually maps the entities associated with the suspect within a network of nodes and connections. By situating the Elite-Bit case within the broader context of cryptocurrency regulation and consumer protection, this paper underscores the urgent need for enhanced regulatory frameworks and public awareness initiatives. This study aims to contribute to the ongoing discourse on financial fraud in the cryptocurrency sector, providing insights that may assist in the prevention of future scams and the promotion of more secure investment and trading practices.
Keywords: Chain analysis, Cryptocurrency crime, Investment crypto-scam, OSINT, Pig Butchering Crypto-scam, Romance crypto-scam
1. Introduction
The adoption of blockchain technology has surged in recent years. However, the unique characteristics of cryptocurrencies have also led to a rise in crime, drawing in scammers and fraudsters. The case analysed in this paper pertains to a fraudulent cryptocurrency investment and trading scam. The majority of frauds involving cryptocurrency trading or fake investments begin on social media or through messaging apps. It should be noted that unsolicited contact from an unknown individual oran online acquaintance introducing an unfamiliar trading platform significantly increases the likelihood...