Tech Times Reports: Alleged $1.5M Crypto Bot Scam, Funds Used for Personal Expenses Instead of Making Investors Wealthy

An incident involving a fraudulent cryptocurrency trading bot was uncovered by the US Federal Bureau of Investigation in 2023, resulting in the apprehension of the scheme’s mastermind, Robert Robb, in March of that year.

Robb reportedly charmed investors into pouring up to $1.5 million into his trading bot. Subsequent investigations, however, revealed that he funneled these funds into his personal accounts.

Investors received alluring promises of becoming “millionaires” by investing in the trading bot and an associated new cryptocurrency dubbed NoRugz.

Sophisticated Crypto Bot Fraud: Investors Deceived and $1.5M Siphoned

A detailed FBI document (courtesy of The Verge) describes how unsuspecting investors were lured into investing $1.5 million into a sham investment featuring a crypto trading bot centered on “Maximum Extractable Value (MEV),” which was promoted on Telegram and other social networking sites.

Here, fraudster Robert Robb invited potential investors to fund the development of the bot, amassing a significant sum, only to fail in producing the promised technology.

According to Robb’s claims to the FBI, the bot was meant to scan cryptocurrency markets for profitable trades and execute them automatically. He assured potential users of becoming wealthy by using his system and investing in $RAT tokens, a new cryptocurrency.

Yet, he persistently evaded questions regarding the bot’s actual existence and availability.

Also Read: Lazarus Group Employs Coin Mixer in $1.2 Million Bitcoin Heist

The Apprehension of Robert Robb and His Alleged Offenses

Within mere weeks, Robb accumulated $1.5 million from his victims, funneling it into his personal expenditures, which included a luxury Jeep purchase, a vacation in the Bahamas, and leasing an executive suite at Mile High Stadium, home of the Denver Broncos.

Additionally, investigations linked an account, @pokerbrat2019, to Robb, who ironically condemned crypto scams while promoting his deceitful product.

A Word of Caution Against Enticing Crypto Scams

In another instance, a woman from Utah fell victim twice over to a sophisticated crypto scam, conned by an individual she met on a dating platform who deceived her into investing $200,000 in cryptocurrency.

Not dissimilar are infamous crypto scams where imposters impersonate reputable organizations, tricking victims into depositing their investments into sham wallet websites, unsuspecting of the devious plot behind it.

Earlier that year, the Phantom Crypto Wallet scam emerged from an account breach on Mandiant, falsely promoting giveaways to its users.

Ill-intentioned hackers and fraudsters adopt various strategies to plunder individuals’ crypto assets, often enticing them with promises of substantial profits or a wealthier future for using their dubious services.

In the end, Robb’s scheme was foiled and his involvement with the misappropriated investment funds uncovered—his too-good-to-be-true crypto bot revealed as nothing more than a facade for personal enrichment.

Related Coverage: UK Clamps Down on Crypto Memes to Shield Public From ‘Finfluencers’ Misleading Promos

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