The Washington State Department of Financial Institutions (DFI), Securities Division has received a complaint about alleged cryptocurrency scams involving multiple websites and trading platforms. The investor invested and subsequently lost approximately $500,000. DFI has not verified the following information.
Characteristics noted in the scams:
- Communicated using LinkedIn and Facebook.
- Fake professional friend requests on social media sites.
- Relationship of trust formed.
- Scammer was quite knowledgeable about cryptocurrency trading.
- Investments begin in small amounts, gradually increasing over time.
- Payments of penalties, late fees and taxes before withdrawing purported investment gains.
- Scammer claimed to have helped pay for half of penalties and taxes.
- Requirement to complete daily transactions to raise credit score in order to withdraw funds.
The investor also provided the following websites/trading platforms that were used in the alleged scams:
- www.directedgeeps.com
- www.xuawen.com
- www.oneex.com
- www.shakepayex.com
- www.achainjs.vip.com
- www.seititba.life.com
This appears to be what is commonly called a “Pig Butchering Scheme.” It may also be an “Advance Fee Fraud.”
DFI urges consumers to exercise extreme caution before responding to any solicitation offering investment or financial services. Investment professionals need to be licensed with DFI to offer investments to Washington residents. In addition, most investment products sold need to be registered with DFI. To check the licensing status and to find out if there are any complaints against an investment professional or investment product, please visit FINRA Brokercheck or contact the Washington State Department of Financial Institutions, Securities Division at (360) 902-8760. If you live outside of Washington State, contact your state securities regulator.
If a consumer believes a person or company has violated state law or acted improperly regarding an investment product or service, they may file a complaint with the Securities Division.
Additional Resources
Virtual Currency, Cryptocurrency, and Digital Assets Information for Consumers