Investor Loses $310,000 to Alleged Crypto Scam Introduced via LinkedIn
Summary:
An investor has reported losing $310,000 to an alleged fraudulent crypto trading platform, "Ethfinance", which was introduced to him through a LinkedIn connection. Unable to withdraw any funds or access his account, the Washington State Department of Financial Institutions (DFI) indicated that this appears to be an instance of Advance Fee Fraud. The DFI's crypto scam tracker shows previous complaints linked to the same platform, further highlighting potential scam activities.
One investor reports a staggering loss of $310,000 to a crypto-trading platform, criticized as deceptive, after being introduced to it via an unexpected LinkedIn connection. The Washington State Department of Financial Institutions (DFI) Securities Division issued a public warning on the 13th of June, stating that the investor had been utilizing a claimed crypto trading platform named "Ethfinance." The platform was introduced to the investor through an unexpected connection request on LinkedIn, says the DFI. The investor entrusted a sum of $310,000 from his "DeFi wallet" to the platform with the aim of making profits through crypto trading. The alleged scam website of EthFinance remains active to this day. The investor, trying to withdraw some of his starting capital and supposed profits, was told he had to add additional funds to finalize the “smart contract” before withdrawing funds. The investor resisted sending more money. As a result, he hasn't been able to withdraw any funds; his account is frozen, reports the DFI. This incident appears to be a classic case of “Advance Fee Fraud," in the DFI's opinion, although the allegations have yet to be confirmed. This type of scam involves the victim being duped into paying a small fee upfront, with the promise of significant returns in form of money, goods, or services. After payment is completed, the fraudster either persuades the victim to pay for more services, or just vanishes. Washington DFI's crypto scam tracker has previously flagged the platform for suspicious activity as well; a resident of California reported losses of over $165,000 after interacting with an online stranger promising lessons on how to profit from crypto trading. The investor was exposed to the scam when asked to send 25% of the profits as “taxes” by the so-called "CEO of Crypto Customer Service" on Telegram, aimed at completing the withdrawal. On June 13, the Washington DFI issued three other alerts: two regarding alleged crypto scams and one focusing on a deceitful investment management platform.
Published At
6/14/2024 7:52:32 AM
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