Fraudulent Cryptocurrency Websites on California Regulator’s Red Alert List Exposed
The California Department of Financial Protection and Innovation (DFPI) has warns public of seventeen cryptocurrency websites it suspected of fraudulent practices.
This was how it cautioned about 26 dubious cryptocurrencies platforms in June, but didn’t issue as many cryptocurrency scam alerts.
However, right now the California Department of Financial Protection and Innovation (DFPI) issued 17 different warnings to cryptocurrency brokers and websites it believes to be fraudulent over the period of two days.
Some of the businesses on the list are Tahoe Digital Exchange, TeleTrade Options, Tony Alin Trading Firm, Hekamenltd/Tosal Markets Limited, Trade 1960, Yong Ying Global Investment Company Limited, Unison FX, VoyanX.com, and ZC Exchange. In addition, eth-Wintermuete.net and Uniswap LLC are frauds masquerading as reputable cryptocurrency companies.
These businesses “appear to be engaged in fraud against California consumers,” according to 17 warnings posted over the weekend of December 27 and 28, according to the DFPr’s consumer alert page at the time of writing.
The DFPI rarely issues so many notifications at once, suggesting that the volume of reports of Crypto scams may have grown in the latter months of the year. Occasionally, the DFPI will publish alerts or warnings about company investigations or specific instances.
You can read more of such stories at Credible News.
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The last time the DFPI issued so many crypto fraud alerts was on June 15, when it warned about 26 dubious crypto sites.
In response to public concerns concerning the brokers and websites, warnings were issued. According to the DFPI, some people have reported losses ranging from $2,000 to $1.2 million.
However, the DFPI only claims that these websites “appears to be engaged in fraud.”
Most of these alerts claim that pig-slaughtering scams involve someone or a group creating a false identity online in order to establish fictitious connections and friendships on social media, messaging services, and dating apps.
In order to gain the victim’s trust, a fraudster will typically spend weeks or months cultivating a false family relationship. Once they have their trust, they will gradually transition the conversation to financial matters and tempt the victim with investment “opportunities” that are frequently unrealistic.
The ultimate objective is to persuade the victim to invest in cryptocurrencies either by sending money to a dubious wallet address or using a spoof website, in this case Uniswap LLC and eth-Wintermute.net.
Along with the pig killing, the alleged con artists are also accused of using another scam technique known as the “Advance Fee Scheme,” in which the dishonest individuals are accused of demanding substantial sums of money to process phoney withdrawals from their scam websites.
If the victim falls for it, the con artist keeps both the initial investment and a further portion before shutting off all communication.
You can read more of such stories at Credible News and The Cheer News
