My name is BlackDoor-82 and I know about the secret you are keeping from your wife and everyone else. More importantly, I have evidence of what you have been hiding. I won’t go into specifics here in case your wife intercepts this, but you know what I am talking about.

According to ABC7 News, Daniel Levinson, who lives in San Francisco, received a letter at his home address with the above statement.

Bitcoin is one of the most important inventions of the last decade. The rise of Bitcoin has changed the way most people view money and investment and has given rise to other cryptocurrencies. However, like each great invention, it doesn’t come without some bad sides. One of the negativity that Bitcoin has brought along with it is an increase in frauds in the cryptocurrency world.

The rise in Bitcoin price last year that saw it reach an all-time high close to $20,000, has seen the space witness an increase in frauds and cyber crime. That ugly side showed itself again recently when Daniel Levinson, received a letter recently, threatening him to pay $8,150 in Bitcoin or have his secrets revealed to his wife.

The fraudster also took the time to write a comprehensive letter to Levinson as it included a two-page “how-to” instruction guide to help him purchase Bitcoin and send them to the fraudster’s cryptocurrency wallet.

Levinson, while talking to press, commented that;

The implication was that I was having an affair but the way it was worded, it could cover anything, maybe a gambling problem or drugs or alcohol. It made me glad that I’ve led a good life and that I’ve always been true to Nora. But I stopped to think, did I ever do anything that could come back and haunt me? No! I’m OK, I’m OK. You know, I had to reassure myself.

Luckily for Levinson, his marriage is a very strong one as he has been together with his wife, Nora, for nearly 25 years and has nothing to hide from her. After receiving the letter, Levinson was naturally alarmed and he notified Nora about the messages instantly. Nora didn’t take him seriously at first, adding that she would never believe it if someone had told her that her husband is having an affair or having done something terrible.

Nora showed her confidence in Levinson and said;

We have a great relationship. We’re very close. We talk about everything. I don’t think there’s anything he does that I don’t already know about.

Scam keeps growing in the cryptocurrency world

Cryptocurrency scam and blackmail has been on the rise over the past few months. The rise in the Bitcoin price has sparked interest of cyber criminals looking to make a quick profit from people who don’t have adequate knowledge about cryptocurrencies.

In a recent report published by cybersecurity company Carbon Black, over $1.1 billion worth of cryptocurrencies have so far being stolen in the first half of 2018.

In the past 6 months, there has been more than $1.1 billion in #cryptocurrency-related thefts. We concluded that cryptocurrency exchanges are the most vulnerable target for #cybercriminals. Find out why in our research report released today: https://t.co/4gNglcXzk4 pic.twitter.com/rj6rnSVHEz — Carbon Black, Inc. (@CarbonBlack_Inc) June 7, 2018

The rise in fraud in the cryptocurrency world isn’t restricted to blackmail only, as cryptocurrency exchanges and user accounts face hacking attempts from cyber criminals all the time.

The most significant hack this year is the hack of the Coincheck exchange back in January, which witnessed hackers wheeling away with $500 million worth of NEM coins. The Chinese prosecutors, a few days ago, charged the final suspect in $2.3 billion OneCoin investigation, with the scam affecting majorly Chinese citizens.

The increase in hacks and frauds has led to regulators in countries like the United States and Belgium, launch websites that will help educate the masses about the danger of cryptocurrencies and how best to protect themselves.

Levinson blackmail similar to Ashley Madison scandal

This case has been compared to the now famous Ashley Madison scandal where married men were blackmailed and threatened to expose their infidelity if they refuse to cooperate.

The ABC7 News report added that the fraudster stated;

You don’t know me personally and nobody hired me to look into you. It is just your bad luck that I stumbled across your misadventures while working a job around San Francisco. I then put in more time than I probably should have looking into your life.

The letter further added that;

At this point, you may be thinking “I’ll just go to the cops”, which is why I have taken steps to ensure this letter cannot be traced back to me. So that won’t help and it won’t stop the evidence from destroying your life.

After addressing the issue, the letter then proceeded to give Levinson instructions on how to make the payment. Nora added that;

It’s disturbing but also funny. The way he calls himself Blackdoor and says I will be humiliated if I find these things out. That’s what made me realize they didn’t know anything about him and didn’t have anything negative about him.

The letter concluded by giving Levinson 19 instructions on how to purchase Bitcoin and transfer it to his wallet. The blackmailer advised Levinson to find a reliable Bitcoin vendor so that he doesn’t lose his funds while trying to purchase Bitcoin.

Security has now become a very important issue in the cryptocurrency world, with investors and traders advised several times to store their funds in hardware wallets and avoid visiting phishing sites. Cryptocurrency exchanges are also working tirelessly to ensure that their platforms are secure for trading and storage of funds.