Circle Warns Against Holiday Crypto Scam Using Fake Branding

A fraudulent holiday scam posing as Circle is luring users with false token offers, using fake branding to prompt wallet connections and claim fictitious rewards.

The scam underscores risks of wallet-drain phishing, highlighting vulnerability in crypto branding and the need for increased vigilance during holiday seasons.

Circle, the issuer of USDC, has issued a warning regarding a fraudulent holiday scam impersonating its brand and using false announcements, such as “CircleMetals” with tokens like GLDC and SILC, to deceive users.

The scam underscores the vulnerability of users during holiday periods and highlights the importance of vigilance. Experts advise against connecting wallets to unverified sites to avoid potential asset theft.

Fake Circle Branding Used for ‘CircleMetals’ Scam

A fake holiday campaign is using Circle’s logo and styling to promote nonexistent products like “CircleMetals”. Users are being urged to connect wallets under the false pretense of claiming rewards. Circle, through official channels and documentation, has confirmed that no such products exist.

Jeremy Allaire, CEO of Circle, along with other executives, have seen fabricated quotes being distributed as part of this scam. There is no evidence in Circle’s official documentation to support the existence of such products, which are noncompliant with Circle’s regulated offerings.

Users Risk Wallet Breaches and Asset Loss

The scam could lead to users having their wallets compromised, risking irreversible loss of assets. Circle has taken steps to alert both the public and authorities, emphasizing the use of its secure services and proactive compliance measures.

Financial systems, especially those intertwined with USDC and related services, could see disrupted trust if such scams are successful, though Circle is actively working to maintain its reputation and protect its users by halting unauthorized activities.

Holiday Scams Exploit Reduced Staffing, Experts Alert

Similar holiday-period scams have targeted major crypto brands, exploiting reduced staffing and slower checks. Historical scams demonstrate that quick public alerts from affected companies can mitigate damage.

The scam is unlikely to alter system-wide market trends; however, individual wallet losses could be significant. Protection measures involve Circle’s ability to freeze USDC involved in fraudulent activities, supporting the broader goal of user protection and fraud prevention.