BlockGPT Scam Exposes Deceptive Apps
BlockGPT Scam Exposes Deceptive Apps

The widespread popularity of OpenAI’s ChatGPT service has led to an unfortunate consequence: the emergence of deceptive applications and rug pulls. One such case involves BlockGPT, a ChatGPT-style Web3 firm that recently carried out a rug pull, resulting in the theft of $256,000 from pre-sale funds.

However, the controversy doesn’t end there. Bloomberg, a renowned news outlet, has faced criticism for publishing a paid press release without a proper disclaimer, inadvertently promoting the scam project.

Certik, a blockchain security firm, confirmed BlockGPT’s fraudulent nature. PeckShield, another cybersecurity company, further substantiated the rug pull claims by revealing that over 800 BNB raised in a presale contract were transferred to Tornado Cash.

BlockGPT had initially issued a press release through Globenewswire, outlining its ambition to create an artificial intelligence system on the blockchain similar to ChatGPT. Unfortunately, the press release was automatically scraped into Bloomberg’s website without clear indications that it was a paid promotion rather than news. Blockfence, a security aggregation provider, expressed their concern on Twitter, urging Bloomberg to provide larger disclaimers and conduct due diligence to prevent the promotion of future scam projects.

The project is associated with two tokens: BlockGPT’s governance token, BGPT, designed to incentivize contributors with valuable questions and data, and a community-based governance token, AIBGPT, created by BlockGPT AI using the Solidity contract on the Binance Smart Chain network. Reports have emerged suggesting that the latter token is unsellable or potentially a honeypot.

The surge in scams exploiting ChatGPT’s popularity sheds light on the darker side of its widespread adoption. As OpenAI’s chatbot service garners immense interest and establishes itself as one of the fastest-growing consumer applications, scammers have seized the opportunity to exploit its reputation. They employ deceptive language and domain names resembling the original site to deceive unsuspecting users.

Unit 42 researchers recently conducted an investigation revealing a staggering 910% increase in monthly domain registrations related to ChatGPT between November 2022 and early April 2023. Additionally, DNS Security logs reported a jaw-dropping growth of 7,818% in squatting domains during the same period. The situation is further compounded by the detection of 118 malicious URLs associated with ChatGPT per day, as identified by their Advanced URL Filtering system.

The rise of deceptive applications targeting ChatGPT users poses a significant threat. These scammers leverage the trust and popularity of ChatGPT to lure in victims through clever advertising and promises of lucrative opportunities. Once users fall into their trap, they execute rug pulls, absconding with users’ funds and leaving them empty-handed.

To protect oneself from such scams, it is crucial to remain vigilant and exercise caution when engaging with ChatGPT-related applications. Here are a few essential steps to take:

Conduct thorough research: Before interacting with any ChatGPT-related platform or project, conduct comprehensive research. Verify the legitimacy of the project, scrutinize their team members, and check for any red flags or negative reviews.

Verify official communications: Beware of phishing attempts and fraudulent messages. Double-check the source of any communication claiming to be from ChatGPT or associated projects. Official announcements and updates are typically shared through trusted channels, such as the official website or verified social media accounts.

Look for clear disclaimers: When visiting websites or reading articles related to ChatGPT, pay attention to disclaimers and disclosure statements. Legitimate platforms and news outlets will clearly indicate if content is sponsored or promotional.

Exercise caution with investments: Be cautious when investing in tokens associated with ChatGPT or similar projects. Thoroughly review the token’s whitepaper, understand its utility, and assess the project’s credibility. Consider consulting with financial advisors or experts before making any investment decisions.

Report suspicious activities: If you come across suspicious activities or potential scams related to ChatGPT, report them to the appropriate authorities or platforms. By reporting such incidents, you can help protect others from falling victim to fraudulent schemes.

As the popularity of ChatGPT continues to rise, it is essential to stay informed and remain vigilant. By following these guidelines and taking necessary precautions, users can reduce the risks associated with deceptive applications and protect themselves from falling victim to similar scams.

While the rise of ChatGPT has revolutionized the field of artificial intelligence and natural language processing, it has also attracted the attention of scammers. The BlockGPT rug pull and the lack of proper disclaimers on Bloomberg’s platform serve as stark reminders of the deceptive apps and practices that exist in this space. By staying informed, conducting thorough research, and exercising caution, users can navigate the ChatGPT ecosystem safely and protect themselves from falling victim to fraudulent schemes. Victims of scams and rug pulls related to ChatGPT or other deceptive applications should consider seeking assistance from Cyberclaims. Cyberclaims specializes in recovering funds lost to cryptocurrency scams and fraudulent schemes. With their expertise in navigating the complexities of blockchain transactions and their network of legal professionals, they can provide support and guidance in pursuing legal action and recovering lost funds. If you have fallen victim to a scam or rug pull, reaching out to Cyberclaims could be a crucial step towards seeking justice and reclaiming your assets. Remember, it’s important to act promptly and consult with professionals who can help you navigate the legal landscape surrounding cryptocurrency fraud.


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