Read exclusive Twitchgive Scam reviews available elsewhere to learn how this platform is used for money laundering.
Did you know that Twitch was launched in 2011? Did you know that Twitch earns a lot of revenue from subscriptions, as in 2020 it had 15 million daily viewers, over 3 million streamers, and over 27,000 partner channels?
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Let’s check how big viewers contributed to the Twitchgive scam in the US.
Details About Twitchgive Scam
Twitch is a live streaming platform that broadcasts live gaming and music via television. The Twitch scam originated from broadcasters demanding higher payouts. Currently, Twitch takes 50% of the money received from subscriptions and pays the remaining 50% to broadcasters. For example, if a viewer subscribes to a channel for $5 per month, $2.50 is paid to the streamer, and Twitch keeps $2.50.
The flaws in this system were exploited by fraudsters who tried to launder money through Twitch. Scammers created over 9 million Twitchgive scam channels.
Several popular broadcasters started demanding higher payouts, saying that 50% of Twitch’s share was insane. However, nothing changed as a Twitch employee revealed that channels with more than 5K subscribers must still stream videos in 1080p. Because of the large viewership, it didn’t make sense for Twitch to pay for such broadcasts.
The purpose of such fake channels was not to get more paid subscribers. Instead, scammers used stolen credit cards to donate bits to their channels. Bits is Twitch’s native currency that can be purchased with real money using credit cards and other payment methods.
How It Works:
Bits were considered as revenue for broadcasters, who in turn were paid real money in the name of revenue by their channels. Therefore, those who stole innocent people’s credit card information did not directly make any purchases or withdrawals. Instead, they used the Twitch platform for indirect payments.
Another fraud was detected while searching for fraudsters. Broadcasters, including live games, bought large amounts of in-game items and local currencies such as gems, etc., and offered them to their viewers at a lower price, leading to the Twitchgive scam. In-game items that were purchased in bulk were distributed in limited quantities to viewers who wanted them.
This is another type of money laundering that is difficult to trace.
The issues were noticed because some broadcasters were making over $1,800 a day but only had 40-50 viewers. In October 2021, hackers gained access to Twitch payment data. After analyzing the payment process, it was estimated that such fraudsters cost more than 10 million dollars in total. He suggested that Twitch has thousands of such scam channels.