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reposting this from reddit (tried to edit the profanities) as I'm certain this is what happened here.

Essentially it's social engineering via a face scan app.

You can see an example of a possible scammer here https://www.instagram.com/sashana_walter/

"My friend is into crypto sh$t and he messaged me saying to check out his story (already weird but whatever) and he posted that this lady turned his $500 into $8500. It was a legit video of him speaking, walking down the street. Anyway I messaged the chick and she told me to download this app and I signed up and it made me scan my ID and my face which I thought was wack again but trusted my buddy… So i end up sending this chick $200 in bitcoin like a f%c^in idiot, but then shes trying to say I need to send another $300 to be able to actually ‘process’ and I was like uhhhh nope? Now ‘she’ is trying to get me to do some two factor authentication confirmation code shit to ‘get my payout’. What I think is going on is they got into my friends account and made a deepfake from the face scan and started DMing other people. "



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