Shanxi police in China have arrested a criminal gang involved in manufacturing and distributing fake cryptocurrency wallets.
The gang had been distributing fake wallet Android Package kit (APK) installation packages through popular messaging apps.
The gang distributed counterfeit wallet APK installation packages through well-known messaging apps like WeChat and Telegram and bought search engine advertising to mimic the legitimate TokenPocket website.
Following this, they lied to victims to download fake wallets, after which users lost their crypto assets.
Bitrace, a cryptocurrency security firm, assisted the Shanxi police in cracking down on the gang. The police continue their investigations, and the case will go to trial soon.
Similar criminal activities have been reported in Zhejiang, Jiangsu, and other areas where several gangs used the same method to imitate popular cryptocurrency wallets like imToken, TokenPocket, MetaMask, and TrustWallet.
How to protect crypto assets
The idea of stealing coins from fake wallets has been highly industrialized. Scammers continuously upgrade their techniques to steal cryptocurrency assets.
Recently, these gangs have used a new multi-signature technique, resulting in an increased number of victims and a corresponding expansion of the scale of the damaged funds.
Bitrace has reminded cryptocurrency users to only download wallets from regular app stores or official websites.
Moreover, it is advisable to avoid installing wallet installation packages sent through Telegram or WeChat groups or wallets downloaded from search engines, to prevent the theft of encrypted assets.
The increasing sophistication of these criminal activities highlights the importance of being vigilant while dealing with cryptocurrencies.
It is necessary to be aware of the potential risks and take precautions while conducting transactions or downloading wallets.