Dubai crypto CEO and numerous victims connected to Fake Rabby Wallet scam

Unsuspecting users fell victim to a fake crypto wallet earlier this year, losing an estimated $1.6 million in the process. The fraudulent app, posing as DeBank’s Rabby Wallet, managed to slip through Apple’s app review process, remaining on the App Store for four days before being removed.

One of the earliest victims, X user Bthemouth, reported that his funds had been drained to a wallet associated with the scam. Through blockchain analysis, this wallet was traced to a larger network of scams linked to an account named “Konpyl” on the NFT marketplace OpenSea.

A private investigator working on the case has connected the Konpyl address to at least 20 cases of fraudulent activity. This individual has been targeting users for about seven years, primarily preying on those who invest their life savings in crypto assets.

While the CEO of Dubai-based firm Moonward Capital, Konstantin Pylinskiy, is linked to the Konpyl online persona, there is no substantiated evidence to suggest direct involvement in the scam. Pylinskiy denies any connection to the Konpyl address, claiming to be a victim of ongoing blackmail.

An ongoing investigation by a US government agency is tied to the Konpyl address, further highlighting the severity of the situation. The Konpyl wallet has been receiving funds from flagged addresses identified as “Fake_Phishing,” indicating a network of illicit activity.

The scammer behind the fake Rabby wallet has been using various tactics to cover their tracks, including laundering funds through decentralized finance services and multiple wallets. Funds siphoned from victims were traded for Ether using platforms like Uniswap, eventually making their way to centralized exchanges like OKX.

Through meticulous blockchain analysis, it was discovered that funds from the Rabby scammer and Konpyl interacted with a multichain bridge called Rhino. The Rhino output wallet received funds in multiple transactions, with significant amounts being traced back to Konpyl over several months.

It’s essential to remain vigilant in the crypto space to protect yourself from potential scams. Always verify the legitimacy of platforms and individuals before investing your hard-earned money to avoid falling victim to fraudulent schemes.