Scam Name: CoinKay Online Investment Fraud

Calculated Amount Lost: $7,707.00 USD
Scam URL: coinkay.online

Victim Description:
The victim was initially contacted by an individual via Facebook and then moved the conversation to Telegram. The scammer provided investment advice and persuaded the victim to deposit Bitcoin into a wallet address associated with the website coinkay.online. After the initial deposit, the victim was told there was a minimum deposit requirement and was asked to deposit additional funds.

Once the victim deposited more funds, they were informed that they needed to upgrade their account in order to make a withdrawal. The victim was then told they had to pay an upfront “fee” in order to proceed with the withdrawal of funds. Upon further investigation, the victim searched the blockchain addresses involved and found that the amounts in and out of the wallet were significantly higher than their original deposits. Additionally, one of the withdrawals involved a much larger sum, which raised further suspicions.

The victim compiled the transaction details into a spreadsheet and concluded that the investment was likely not legitimate.

Scam Tactics:
The scammer initially built rapport with the victim on Facebook and later moved the conversation to Telegram to avoid scrutiny and further verification.
The victim was convinced to deposit Bitcoin into a wallet associated with a fraudulent platform (coinkay.online).
After the initial deposit, the scammer claimed that additional funds were required to meet a “minimum deposit” threshold.
The victim was then instructed to “upgrade” their account to access the ability to withdraw funds.
The scammer ultimately demanded an advance fee before the victim could make a withdrawal.
Upon further investigation, the victim noticed discrepancies in the blockchain transactions, where the amounts in and out of the wallet did not align with the deposits made by the victim, indicating the presence of fraudulent activities.

Wallet Address Involved in the Scam:

• 1BUHpvJ59symde8gMngY3qHA4zwZMoa8ox

Scam Overview:
The scam targeted the victim through social media (Facebook) and private messaging on Telegram. The victim was led to believe they were investing in a legitimate cryptocurrency platform (coinkay.online), only to encounter increasingly suspicious demands for more money, including a request for an upfront fee to process a withdrawal. The victim, upon reviewing blockchain transactions, discovered that the amounts moving in and out of the wallet were inconsistent with their deposits, and one withdrawal involved a much larger sum, reinforcing the suspicion of fraud.

Recommendations:
Report the Scam:
The victim should report the incident to the relevant authorities, such as the FBI’s Internet Crime Complaint Center (IC3), as well as any other appropriate regulatory bodies in their region. Additionally, reporting the website and wallet address to the platform involved (if applicable) can help warn others.
Blockchain Investigation:
The victim has already conducted an initial investigation by searching the blockchain for unusual activity. To expand this search, the victim can use a blockchain explorer like Blockchain.com Explorer to continue tracking the flow of funds to see if any other wallet addresses are connected to this scam or similar schemes.
Seek Legal and Financial Advice:
The victim might consider reaching out to a legal expert who specializes in cryptocurrency fraud, as well as a financial advisor who can help navigate the process of recovery or mitigation of the loss.
Educate and Raise Awareness:
It’s important for the victim to spread awareness about this scam through social media, cryptocurrency forums, or other online communities. Sharing the details of the scam could help prevent others from falling victim to similar tactics.
Use Trusted Platforms Only:
The victim should avoid investing through platforms found on social media or messaging apps and instead use well-known, regulated exchanges or trading platforms. It’s crucial to perform thorough research on any platform before making an investment.

Conclusion:
The victim lost $7,707.00 USD due to a fraudulent cryptocurrency investment scheme carried out through a platform called coinkay.online. After depositing Bitcoin into a wallet linked to the site, the victim was asked to make further deposits to “upgrade” their account and pay upfront fees for withdrawal. The victim discovered inconsistencies in blockchain transactions that indicated the presence of fraudulent activity. Immediate steps should be taken to report the scam, trace the funds, and seek professional legal or financial help.