Grayscale Trust Falls Victim to Phishing Scam, Crypto Investors Beware

Wed, 06/24/2020 - 10:35
Vladislav Sopov
Typically, every overhyped blockchain-related product draws the attention of blatant scammers. Investors have unveiled a phishing attempt by Grayscale impersonators
Cover image via

Seasoned cryptocurrencies investor Ryan Sean Adams, founder of the Mythos Capital investment fund, announced that he received a very strange letter. It turns, he is not the only one.

Suspicious exception for fat cats

According to a screenshot of a letter shared by Mr. Adams in a tweet, fraudsters are impersonating Michael Sonnenshein, managing director of Grayscale Investments. The fake 'Sonnenshein' is asking for feedback on Grayscale's products and offering two programs.

Image via Twitter

This scam can hardly be called well-designed. First of all, the impersonators use a 'Graysceal' domain instead of 'Grayscale', which is a very old strategy. Secondly, the letter is full of grammatical errors and looks like it was written in a rush.

Furthermore, the logic of the letter is broken: the author offers two of the most popular Grayscale products after asking whether they are 'useful'.

Finally, the scammers try to lure in gullible addressees claiming that Grayscale can raise funds even from unqualified investors 'on an exceptional basis', hinting at the large investments required for this shady 'exception'.

The letter contains two backlinks and asks for an answer so it is highly likely that it may steal personal financial information.

Controversial newsmaker

The activity of Grayscale Investments which offers benefits from cryptocurrency market volatility without owning crypto tokens raised many concerns among investor and analytic communities.

Their most popular product, Grayscale Investments Ethereum Trust (ETHE), sells stocks of an Ether-pegged trust with an enormous premium. As highlighted by ex-Messari analyst Qiao Wang, this method has no benefits in terms of liquidity influx or taxation regime.

Also, he unveiled that the Grayscale Bitcoin Trust (GBTC) lacks a redemption function, which is very suspicious. Without a prominent redemption instrument, the investors of GBTC are just sponsors of the Grayscale team, Mr. Wang concluded.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (, Monoreto, Attic Lab etc.)

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