Crypto Scammers Lose 4,000 Hours in Futile Scheme as China Nabs $12M in Digital Assets – Here’s How to Shield Your Wallet

Crypto crime just got a reality check. While scammers burned 4,000 hours on failed schemes, Chinese authorities seized $12 million in illicit digital assets—proof the game’s getting riskier for bad actors.

Your move? Lock down your wallet like the SEC wishes it could regulate meme coins.

The Scam Graveyard

Imagine spending 4,000 hours—that’s 166 days—on crypto scams only to walk away empty-handed. Either these fraudsters need better project management or karma’s a blockchain purist.

China’s $12M Reality Slap

Meanwhile, Beijing’s crypto crackdown just turned profitable. A $12 million bust proves even decentralized dreams hit centralized roadblocks. (Cue ironic applause from TradFi bankers.)

Wallet Warfare

Forget ‘hodling’—2025’s crypto survival tactic is defense. Cold storage, multi-sig, and biometric checks aren’t optional anymore. Pro tip: If your wallet security’s weaker than a shitcoin’s whitepaper, you’re basically donating to scammers.

Bottom line? The crypto wild west still has outlaws—but the sheriffs are learning to track digital footprints. Adapt or get rugged. (And no, your ‘gut feeling’ isn’t a security protocol.)

Over the past year, the fake ATM has trapped about 500 scammers, occupying them for 3,953 hours, approximately 164 days.

On average, each scammer spends nearly 3 hours in the maze, while the record stands at 156 hours; that’s more than six days.

Six days in which the scammer wasn’t scamming someone else.

More Than a Time Waster

Kitboga isn’t merely playing games with scammers; he’s gathering actionable intelligence. Registering on the fake crypto exchange Kitboga set up requires scammers to enter their Bitcoin address, giving the team a growing database of known scam wallets.

Some attackers inadvertently reveal video feeds or other identifiers. In collaboration with Kraken, crypto funds obtained by scammers have reportedly been frozen based on information from the maze.

The fake ATM maze is Kitboga’s ‘second most effective tool,’ behind AI‑powered autodialers. His team is launching similar infinite‑maze tactics for other scam types, including gift card fraud and mailed‑cash schemes.

Bitcoin ATM scams are nothing new—but their scale is increasing. In the first half of 2024, U.S. consumers lost nearly $65M to scams routed through ATMs; 2023 saw over $100M lost in crypto ATM scams.

But like normal people, for fraudsters, time is money. Every minute spent in Kitboga’s maze is not spent scamming real victims – the maze even requires scammers on hold to respond with ridiculous phrases or risk losing their spot.

Scambaiting isn’t the only tool in the arsenal – other entities, like Chinese law enforcement, are turning to different tools.

Chinese Local Law Enforcement Step Up

Beijing’s Haidian District People’s Procuratorate exposed an embezzlement-driven crypto laundering operation involving Kuaishou employees. The employees siphoned approximately ¥140M ($20M) via Bitcoin and mixers routed through at least eight overseas exchanges.

Authorities recovered 92 BTC (¥89M, $11.7M) and successfully prosecuted eight insiders, issuing prison terms ranging from 3 to 14 years alongside financial penalties.

China has some of the strictest anti-crypto policies in the world. That makes the potential gains from crypto scams even greater, though it elevates the risk. A prosecutor noted the case exhibits all the traits of modern digital-era corruption:

• Small-scale officials engaging in big fraud
• Crypto-aided money laundering
• Poor risk control within corporations

Though China has banned crypto trading and mining, underground operations remain vibrant. Earlier investigations uncovered a $2.2B money laundering ring using OTC brokers, secret shell companies, and exchanges, often used to bypass China’s strict foreign exchange caps.

In the end, what brought down the latest crypto scamming ring was dedicated local law enforcement, illustrating that the path forward to fight scams involves boots-on-the-ground in more than one way.

The fight also requires increasing everyday crypto literacy – and that means a top-of-the-line crypto wallet.

Best Wallet Token ($BEST) – Web3 Wallet for Safe, Secure, Non-Custodial Crypto Economy

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• reduced transaction fees
• priority access to presale launches
• higher staking rewards
• governance rights

The Best Wallet app features seamless cross-chain swaps and a growing integrated economy; Best Wallet, the $BEST token, and an upcoming Best Card.

Interest in a wallet that provides real value for the growing crypto world has driven the presale past the $14M mark. With tokens currently priced at $0.025395, there’s never been a better time to get in. You can learn how to buy $BEST with our guide.

Scambaiting, Local Enforcement, Best Wallet Keys to Crypto Safety

What began as comedic scambaiting for Kitboga evolved into a novel FORM of activism. It highlighted just how important it is to have a comprehensive approach to avoiding crypto scams – an approach that heavily features Best Wallet.

As always, do your own research. This isn’t financial advice.