Man claims “crypto-broker” offered to sell his parents Bitcoin at a 5% discount from market rate

SINGAPORE: A man sought advice online on how to dissuade his parents from potentially falling for a crypto scam. He posted on r/askSingapore, explaining that a “crypto broker,” who happens to be a friend of his parents, was proposing to sell them Bitcoin at a 5% discount from the market rate.

The broker’s pitch was that they could purchase Bitcoin at a discounted price and then sell it immediately, thereby earning a 5% profit.

He tried to explain to his parents that the offer didn’t make sense because making money “shouldn’t be that easy.” He also pointed out that if it were truly that easy to earn a 5% profit, then why would the broker share the opportunity instead of taking advantage of it herself?

“The broker shares that she’s actually helping someone to sell the bitcoin on their behalf, but I reason again that if the person wants to sell their bitcoin, why aren’t they just going to a crypto exchange instead of losing the 5%.”

“Either way, my parents have put this idea on hold, but I think I would have to discuss it with them before they take action. If you guys have any pointers on how I can reason with them let me know. Thanks all!”

“Get some relatives involved, their siblings perhaps and let them know about the situation”

In the discussion thread, several Redditors suggested that instead of simply telling his parents to steer clear of cryptocurrency, he should “educate them” about its risks. They recommended that he show them how the cryptocurrency exchange FTX, once valued at $32 billion, collapsed within days in November 2022, or illustrate how crypto scams have led others to lose millions.

One netizen also recommended that if these efforts fail, he should involve other family members to help dissuade his parents. She said, “An intervention would work well, if they aren’t listening to you it’s probably because they might already have their mind set in stone or they just think they know better than you.

Get some relatives involved, their siblings perhaps and let them know about the situation.”

Additionally, another netizen suggested reporting the scammer directly to the authorities. He wrote, “Pretend to go with her on the plan, join that group and try to dig up info on that scammer. Once you have enough info, go make a police report on that person, share the screenshot of your report to her and let her know the police are onto her. Doubt she will be that desperate to try anything funny with your parents from that point on.”

Meanwhile, others gave alternative suggestions on how to handle the situation.

One netizen recommended that the man advise his parents to invest only through approved channels, suggesting they use a direct, MAS-approved crypto platform or brokerage instead of dealing with a third party.

Another netizen proposed that he suggest investing in T-Bills to earn a reliable 3.7%, emphasizing that it is government-backed and far safer than cryptocurrency.

Read also: 32yo Singaporean lost S$30K savings to crypto crash, asks, “How can I earn it back?”

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