The investigation, led by crypto researcher Eye, uncovered the link in a Saturday post on X. The whale’s main wallet, known as ereignis.eth, was found to be connected to another Ethereum Name Service (ENS) name, garrettjin.eth. This link traces directly to Jin’s verified X (Twitter) account, @GarrettBullish.

The Mysterious Hyperliquid Whale

Eye’s findings suggest that the ENS name ereignis.eth (which means “event” in German) is a crucial identifier for the operations on Hyperliquid/Hyperunit. This wallet’s activities align closely with Jin’s known business endeavors, including transfers to staking contracts and addresses backed by exchanges he once associated with, such as Huobi (HTX).

Moreover, the whale’s wallet was involved in transactions linked to BitForex addresses and Binance deposits. These funds were reportedly used to execute large Bitcoin trades, including a staggering $735 million BTC short.

BitForex and Its Fraught History

Garrett Jin’s tenure at BitForex, from 2017 to 2020, was marked by controversy. The exchange faced accusations of falsifying trading volumes and was flagged by Japan’s Financial Services Agency for unregistered operations. In 2024, BitForex suffered a $57 million loss from its hot wallets, leading to withdraw freezes and its eventual shutdown following team detentions in China. Hong Kong’s Securities and Futures Commission also issued a warning for potential fraud, with users reporting millions in unrecovered funds.

After BitForex’s collapse, Jin launched several ventures, including WaveLabs VC, TanglePay, IotaBee, and GroupFi. However, many of these projects have since stalled. In 2024, he introduced XHash.com, a platform for institutional Ethereum staking, which investigators claim may have facilitated questionable fund activities. Subsequently, Jin removed XHash from his social media profiles, though it remains visible on his Telegram account.

Skepticism Surrounding the Allegations

Despite the investigation’s findings, not all are convinced. Crypto analyst Quinten François expressed doubts about the alleged connections between the Hyperliquid whale and Jin. He questioned the simplicity of the evidence, stating, “Why would you have an .eth name leading to your X handle in a wallet that directly connects to market manipulation wallets and other crime-related wallets?” François suggests that the setup might be “too simple to be true.”

This developing story highlights the complexities and potential risks within the cryptocurrency market, especially concerning large-scale operations and regulatory scrutiny.

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On July 23, Garlinghouse took to social media to caution investors about the uptick in XRP scams. He expressed concern that scammers are exploiting market enthusiasm and community excitement to orchestrate fake schemes primarily aimed at unsuspecting XRP holders.

Garlinghouse highlighted the recent fraudulent activities on YouTube, where scammers have hijacked existing channels, rebranded them to resemble Ripple’s official accounts, and started broadcasting deceptive content that impersonates Ripple and its executives.

In an official statement, Ripple’s team clarified that these YouTube accounts are not associated with Ripple, despite their convincing appearance. Scammers have cleverly manipulated usernames to imitate Ripple’s official accounts, creating confusion among users.

These deceptive videos often offer giveaways, rewards, or investment multipliers, typically asking investors to send XRP in return for a larger payout. Garlinghouse has reiterated that neither he nor Ripple will ever ask for XRP from anyone.

As a response to the growth of these crypto scams, Ripple is proactively reporting these fake accounts and urges its community members to do the same. Ripple’s official channels remain the only trusted sources of information, and users are advised to validate account handles and links before interacting.

Garlinghouse ended his post by reminding everyone to stay alert and to remember that “if it sounds too good to be true, it probably is.”

The Ripple CEO’s warning serves as a broader caution against escalating crypto fraud during times of market recovery or increased optimism. This surge in XRP scams coincides with the recent rise in XRP’s price above $3.6 and follows positive news such as Ripple’s regulatory clarity and its legal win against the US SEC.

As XRP’s price gets closer to its all-time highs and gains momentum, scammers are leveraging this wave of optimism to ensnare more investors in their fraudulent schemes.

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Mr. A, along with six other conspirators, allegedly swindled investors from October 2020 through January 2022. They held promotional gatherings in Gangnam, Seoul, purporting to operate businesses involved in artificial intelligence (AI) and cryptocurrency.

By promising an exorbitant 300% return on investments, the group successfully lured over 2,200 investors. The investment amounts ranged from around $770 up to $770,000. The plot followed the traditional Ponzi scheme pattern, using the capital from new investors to pay off the initial participants until it ultimately fell apart.

Mr. A employed family members and acquaintances to manage diverse aspects of the operation, including finance, IT, marketing, and investor recruitment. The police initiated an investigation in September 2022 after receiving complaints, which led to a two-month-long manhunt when Mr. A vanished before his pretrial hearing.

The arrest unveiled that Mr. A was on a two-year suspended sentence from July 2021 for a similar fraud plot when he started this new operation. A police spokesperson remarked, “Ponzi schemes are heinous crimes that warrant severe penalties, as they lead to numerous victims and make it impossible to recuperate losses.” The spokesperson also noted that many victims were aged between 50 and 70 and were not familiar with AI or crypto technologies.

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In her op-ed entitled “My colleagues in Congress are making a mistake advancing these crypto bills” published on MSNBC, Waters warned again about the looming dangers of the soon-to-be-discussed crypto legislation.

This week is expected to be pivotal for crypto legislation as the House is set to deliberate on two major crypto bills. Many anticipate this could result in a stablecoin bill landing on former President Donald Trump’s desk by the end of the week. Insiders predict the Clarity Act to pass on Wednesday, with the GENIUS stablecoin bill to follow on Thursday.

With “Crypto Week” around the corner, Waters pointed out that both bills carry a “deliberate and specific nuance.” She argues they would “sanction and legalize the unprecedented crypto corruption by the president of the United States.”

Trump’s association with cryptocurrency has been a central issue for Democrats regarding both bills. Bloomberg estimates that cryptocurrency endeavors account for roughly $620 million of Trump and his family’s wealth.

Waters further contended that the bills fail to safeguard consumers. She stated, “The CLARITY Act restrains the Securities and Exchange Commission, preventing it from actively guarding people against fraud.”

She added, “The GENIUS Act is equally problematic. Its proponents claim it will offer urgently necessary protections for stablecoin users, but it doesn’t allocate funds to regulators for the law’s implementation, and its consumer protections are weak.”

The GENIUS Act, which has already passed the Senate, proposes comprehensive stablecoin regulations demanding full backing by U.S. dollars or equivalent liquid assets. Clarity, meanwhile, proposes a wider regulatory scope for cryptocurrency markets, defining the oversight responsibilities of the SEC and the Commodity Futures Trading Commission. Under this law, crypto firms would be compelled to provide retail financial disclosures and maintain separation between corporate and client assets.

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This fraudulent operation spanned from 2017 to 2019, during which the pair reportedly swindled around $2 million from 65 victims. UK judicial authorities have identified Bedi and Mavanga as the culprits who defrauded investors of £1.5 million, roughly equivalent to $2 million. The FCA (Financial Conduct Authority) prosecuted them, and they were found guilty of fraud. Bedi received a sentence of 5 years and 4 months, while Mavanga was sentenced to 6 years and 6 months.

They were operating under the names of CCX Capital and Astaria Group LLP. The court exposed their intentions to exploit the financial regulatory system and continue reaping their unlawful gains even after their scam had been exposed. The court has urged victims of this fraud to seek support and learn ways to identify such scams in the future.

The scam targeted inexperienced retail investors in the cryptocurrency market. The fraudsters sold counterfeit assets, posing as a legitimate investment opportunity. Using attractive promotional materials and exaggerated promises of future gains, they managed to convince investors to part with thousands of pounds in hopes of making a profit. The aftermath of the scam had severe implications for the victims, some suffered mental health issues while others fell into debt. Some had invested their life savings and lost everything.

Judge Griffiths, presiding over the case, stated that both men were equally complicit and intentionally flouted financial regulation laws. The duo admitted their guilt in 2023. However, Mavanga was found guilty of additional offences, including the concealment of phone recordings discussing the scam with Bedi. The court condemned their actions and recognized the many people who were seeking investment opportunities to earn a return on their money.

The guilty plea in 2023 came after defrauding 65 investors of about $2 million. The resolution took a considerable amount of time due to a backlog of cases at the FCA, some dating back to 2016. The FCA has been focusing on crypto-related cases and has an extensive list of cases involving deceptive advertising of cryptocurrency investments. The protracted legal process has highlighted the need for resources to enforce regulations effectively.

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The Swiss Financial Market Supervisory Authority (FINMA) identified the Yuh platform, inclusive of crypto trading, as a primary target for fraudulent schemes conducted by scammers. Marc Buerki, Swissquote’s CEO, acknowledged the surge in fraudulent activities to AI technologies, which simplify the initiation of malicious campaigns. He also assured that their internal systems remained unaffected by the counterfeit websites.

Despite attempts to reach out, Cointelegraph had not received a response from the company at the time of publishing. Fraudulent activities continue to plague the crypto sector, leading to billions of dollars in annual collective losses for users and deterring potential market entrants from acquiring digital assets.

So far in 2025, onchain incidents have resulted in losses approximating $2.1 billion. A significant portion of these losses can be attributed to wallet compromises and phishing attacks. With an increase in data leaks, it is crucial for users to stay alert,” stated cybersecurity firm CertiK in May.

Phishing attacks, social engineering strategies, deceptive websites, online impersonation, and address poisoning scams consistently rank among the most prevalent tactics used by threat actors to trick users and misappropriate funds. In April, a senior citizen was targeted in a $330 million heist through a social engineering scam, as per onchain investigator ZachXBT. This theft was categorized as the fifth-largest crypto loss in history.

Even experienced industry experts are falling victim to intricate social engineering scams. In June, crypto venture capitalist Mehdi Farooq, an investment associate at Hypersphere, revealed that a phishing attack had depleted the majority of his life savings.

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According to a Wednesday report by Australia’s financial intelligence agency, AUSTRAC, the widow had been engaged in an online relationship with a man from Belgium for two years before discovering his true fraudulent nature. The elderly woman was completely oblivious to his fraudulent activities until the authorities showed up at her doorstep.

The unsuspecting victim was convinced by the scammer, whom she had met on a dating application, to invest in Bitcoin by showing her counterfeit documents stating that he had earned 13,000 Australian dollars ($8,464) in just a week. The fraudster guided her through her initial transaction, which required her to withdraw money from a standard ATM and then deposit it into a Bitcoin ATM. Over the course of 18 months, she ended up depleting her life savings.

The woman admitted to carrying around 20,000 Australian dollars ($13,023) in cash at one time. The transactions were time-consuming and took up to half a day’s work, which eventually led her to become quite proficient in using the Bitcoin ATM.

Brendan Thomas, CEO of AUSTRAC, highlighted another case of a woman in her 70s who lost over $200,000 after falling for a fraudulent trading firm advertisement promising substantial returns on her investment.

The police have arrested one person on charges of property laundering, while four others have been given formal cautions on suspicion of using cryptocurrency to purchase drugs or acting as money mules for criminals. Some of these suspected mules were also victims of scams, who had either unknowingly aided criminals or had deliberately transferred funds in an attempt to retrieve their stolen money.

The recent crackdown by AUSTRAC follows the introduction of new operational rules and transaction limits for cryptocurrency ATM operators on June 3, in an attempt to fight against scams. The agency has identified cryptocurrency as a key focus area for 2025.

Graeme Marshall, AFP Commander, warned scam victims about the dangers of transferring large sums of money into cryptocurrency ATMs under the false pretenses of love or investment opportunities. If anyone guarantees quick profits or creates a sense of urgency, or if the person is a stranger, contact should be severed immediately and the incident should be reported.

ReportCyber, Australia’s online cybercrime reporting portal, received 150 unique reports of scams involving cryptocurrency ATMs between January 2024 and January 2025, with losses exceeding 3.1 million Australian dollars ($2 million).

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Chainabuse and Scamwatch are vital tools when dealing with crypto fraud. Chainabuse, an international reporting platform, combats crypto scams on a broad scale. It enables users to report fraudulent crypto activities, ranging from counterfeit Bitcoin wallet addresses to phishing sites. These reports are public, thereby protecting others while alerting major crypto firms in real time. Chainabuse also assists with general safety tips and how to report the incident to law enforcement.

On the other hand, Scamwatch, run by the Australian Competition and Consumer Commission (ACCC), collects scam reports, disseminates warnings, and helps disrupt fraud. It plays a significant role in determining the most damaging scams affecting Australians. While Scamwatch does not directly act upon individual reports, it provides valuable data for broader investigations. Furthermore, it offers resources like the Little Book of Scams, which provides guidance on identifying, avoiding, and recovering from scams.

Reporting a Bitcoin scam is simpler than it seems, especially with Chainabuse and Scamwatch’s aid. However, before starting the reporting process, ensure you gather as many details as possible about the scam. This information makes it easier for investigators to spot patterns and take the necessary action.

After reporting a scam, you may wonder what happens next. Chainabuse makes your report publicly accessible, helping others identify suspicious wallet addresses or bogus websites. Meanwhile, Scamwatch adds your report to a nationwide database, which the ACCC monitors. While reporting a scam may not guarantee the return of your lost funds, it plays a crucial role in reducing future scams, making the crypto industry more secure.

Other than Scamwatch and Chainabuse, crypto scams can also be reported to the Internet Crime Complaint Center (IC3) and the US Federal Trade Commission (FTC). Reporting to multiple platforms increases visibility and the chances of authorities taking action.

While it’s crucial to report scams, it’s equally important to stay vigilant and protect yourself from potential scams. Always verify recipient addresses before sending Bitcoin, avoid clicking suspicious links, and never trust guaranteed returns. Remember, anyone can fall victim to scams. However, by reporting it, you can turn a painful experience into a powerful tool to protect others.

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The report also showed a 24% increase in global crypto scam losses from the previous year, totaling $4.6 billion in 2024. Approximately 40% of major fraud cases involved deepfake technologies, with fraudsters increasingly leveraging sophisticated imitations of public figures and platform executives to trick users.

Bitget CEO, Gracy, spoke to Cointelegraph: “The ability of scammers to quickly generate synthetic videos, combined with the viral power of social media, gives deepfakes a unique edge in terms of scope and credibility.”

Combatting AI-driven scams requires more than technology. It demands a paradigm shift in attitudes, particularly in an era where synthetic media such as deepfakes can convincingly replicate real individuals and scenarios. Trust must be judiciously gained via transparency, continuous scrutiny, and thorough verification at every step.

The report breaks down contemporary crypto scams into three main categories: AI-produced deepfake impersonations, social engineering tactics, and Ponzi-like frauds masquerading as DeFi or GameFi projects. Deepfakes are particularly nefarious, with AI mimicking text, voice messages, facial expressions, and even behaviors.

For instance, fraudsters have used fake video endorsements from public figures like Singapore’s Prime Minister and Elon Musk to gain public trust. AI can also simulate real-time reactions, making these scams progressively harder to differentiate from reality.

As these AI-enabled scams become more complex, users and platforms must devise new strategies to stay safe. Regular security training and robust technical defenses are key for institutions. Gracy advises users to “verify, isolate, and slow down,” emphasizing the importance of verification through official websites or trusted social media accounts.

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On Monday, the DOJ slapped Gugnin with a 22-count indictment, with charges ranging from wire and bank fraud, money laundering, to operating an unlicensed money transmitting business, among other accusations. If found guilty, Gugnin could potentially be sentenced to life imprisonment. This case adds to a growing list of instances where cryptocurrencies have been used to skirt sanctions and launder money.

The DOJ asserts that from June 2023 to January 2025, Gugnin masterminded an extensive money laundering operation, processing Tether USDTUSD transactions for Russian clients connected to sanctioned banks such as Sberbank, VTB, Sovcombank, and Tinkoff. John A. Eisenberg, assistant attorney general for national security, stated that Gugnin transformed his crypto business into a “secret conduit for illicit money,” channeling around $530 million through the US financial system to aid sanctioned Russian banks and assist Russian consumers in procuring sensitive American technologies.

According to the DOJ, Gugnin misled US banks about Evita’s Russian connections, manipulated invoices to conceal client identities, and disregarded Anti-Money Laundering regulations, despite having registered Evita Pay as a money transmitting business in Florida using false declarations. The DOJ reached out to Evita Pay for comments, but none were immediately forthcoming.

Furthermore, the DOJ claims that Gugnin conducted online searches such as “Am I being investigated” and “signs you may be under criminal investigation,” suggesting that he was aware of his illegal activities. Gugnin now faces a potential 30-year prison sentence for each count of bank fraud, up to 20 years for each wire fraud count, and up to 10 years for failing to implement an effective Anti-Money Laundering program and failure to file suspicious activity reports. Conspiracy to defraud the US could add an additional five years to his sentence.

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