Webaverse co-founder admits $4 million scam

The co-founder of Web3 metaverse gaming engine Webaverse said that the company was robbed of $4 million in crypto after meeting with con artists who pretended to be investors in a Rome hotel lobby.

Webaverse co-founder Ahad Shams told two fake investors they could steal his cryptocurrency from his Trust Wallet.

Shams says the most unusual part of the story is that the cryptocurrency was stolen from a newly created Trust Wallet, and the attack occurred during the meeting.

Since he was not connected to a public WiFi network then, the burglars could not have known the private key. Shams believes the con artists could steal the wallet as he photographed it to record the amount.

The fraud execution

Webaverse and Shams testified in the Feb. 7 Twitter letter. After weeks of negotiations over funding, he met with “Mr. Safra” on Nov. 26.

Despite his skepticism, Shams met “Mr. Safra” and his “banker” in a Rome hotel lobby. During this meeting, Shams intended to show “Mr. Safra” the project’s proof of funds.

Shams created a Trust Wallet account on a gadget he rarely used at home. Shams believed that the monies would be safe even if he lost the private keys or seed phrases.

Shams explained that “Mr. Safra” did not have private keys or seed phrases.

After leaving the conference room, “Mr. Safra” vanished and was never seen again. Shams watched the cash disappear.

Shams reported the incident to Rome police immediately. He submitted an IC3 form to the FBI a few days later.

Shams stated he did not comprehend how “Mr. Safra” and his con crew pulled off the scam.