Coinrule-web3 is a crypto scam that has appropriated the name of a legitimate crypto platform to con would-be investors out of their funds.
The Coinrule-web3 name is used across multiple websites with slight variations in the URL name or domain extension.
It should not be confused with the entirely legitimate crypto platform – coinrule.com.
The scam garnered widespread media attention when it emerged that a Minnesota man lost nearly $10 million after meeting someone on LinkedIn.
The person claimed the victim could make huge returns by investing in the Coinrule-web3 crypto platform and that once the money was secured, they would run off with him without his wife.
The victim sent some $9.2 million via 21 transactions to what he thought was a trading platform and initially, he saw large ‘gains’ appear in his account.
However, these weren’t real and the money he’d transferred had actually been sent to a crypto address controlled by the scammers.
When the victim found his funds locked, he was told he need to pay a ‘withdrawal fee’ of nearly $3 million – a classic technique used by fraudsters involved in what is known as pig butchering scams.
The authorities in the United States are now investigating.
There are many variants of the Coinrule-web3 scam online but each scam follows a similar pattern whereby a victim is befriended either through a social media platform or dating website before being encouraged to invest in crypto.
How to spot a Coinrule-web3 scam website
Crypto scam websites can appear very professional or extremely amateurish making some much easier to spot than others.
But in most cases, there are a number of things you can check to help you avoid engaging with a scam platform.
Here are a few telltale signs to look out for:
- A domain name that’s been set up very recently.
- A website that lacks any corporate or regulatory information.
- No social media profiles or official app store apps.
- No reviews online, or warnings that the site is a scam.
- Pressure to invest from someone you’ve met online.
- Convoluted ways of transferring money to the platform.
- Being guided by your new ‘friend’, who sets up accounts for you.
- Pressure to invest quickly or miss out on the opportunity.
- The promise of large, guaranteed returns in a short space of time.
For a complete list of what to look out for in a crypto scam check out our scam help and resources section, where you’ll also find a wealth of useful information on cryptocurrency fraud.
What to do if you’ve been caught in the Coinrule-web3 scam
Scammers go to great lengths to cover their tracks and it can be very difficult to track them down.
However, if you’ve been scammed it’s important to report it to the authorities so they can build a more complete picture of how crypto fraudsters are operating.
There are also private companies that might be able to help which I’ve written about here.
If you suspect a site is fake, get in touch.
Related post: Crypto scams help and resources