In a creative approach to combating fraudulent activities, leading United States cryptocurrency exchange Kraken has devised a unique method of identifying malicious wallets—constructing a counterfeit crypto account on their platform to “scam bait” bad actors.
Popular streamer Kitboga, renowned for his endeavors in frustrating scammers, took to Twitter on May 10 to share his experience. He revealed that Kraken had created a tailored environment for him to engage with a scammer impersonating President Joe Biden. This encounter marked a rematch between Kitboga and the fraudster, as they had crossed paths about a year ago.
In a video clip accompanying the tweet, Kitboga can be seen in possession of approximately USD 450,000 worth of Bitcoin within his fabricated Kraken crypto account. The scammer, through video remote computer screen-sharing software, views the funds that he believes he successfully coerced Kitboga’s character into sharing, growing increasingly excited about the potential windfall.
However, the climax occurs when, playing the role of an elderly woman, Kitboga intentionally enters the scammer’s wallet address incorrectly before initiating the transfer of all the funds. Consequently, the scammer becomes infuriated and launches a barrage of profanities at Kitboga.
Interestingly, it appears that the scammer provided a BTC wallet address hosted by Kraken, inadvertently enabling the cryptocurrency exchange to identify and flag the fraudulent activity.
This remarkable operation was made possible through the collaboration between Kitboga and Kraken’s Chief Security Officer, Nick Percoco. Their joint efforts exemplify a proactive stance in tackling scammers and safeguarding users within the crypto community.