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The Washington State Department of Financial Institutions (DFI), Securities Division, has received information that a purported cryptocurrency exchange platform, www.nflxcoin.com, may be engaged in fraud. The website appears to be active but currently provides no content other than a link apparently redirecting users to a “Google Sign In” page.
The investor learned about the investment opportunity through a Facebook notification recommending joining an investment club, allegedly run by a crypto asset management company that appeared to be impersonating a registered broker-dealer. The company claimed there were no withdrawal restrictions and that investors could earn 80 percent profit within seconds. The investor received assistance in setting up an Nflxcoin.com account and was invited into a Telegram group chat. Members in the Telegram group were given trading signals from someone going by various names including “Mr. Michael”, “Michael Investment Team”, and “Teacher”. The investor transferred Bitcoin to the Nflxcoin.com platform, then bought and sold cryptocurrency using “Mr. Michael’s” trade recommendations. Over a period of time, the investor’s account appeared to grow. Within the first month, the investor received an unexpected deposit in the Nflxcoin account, and subsequently, an alert that the account was frozen due to suspected money laundering. The investor was instructed to pay additional Bitcoin to remove the restriction. The investor complied, but soon received another alert regarding suspected money laundering and the account was re-frozen. The investor was instructed to transfer additional funds but declined to make further payments.
This appears to be what is commonly called an “Advance Fee Fraud”, which can take many forms. This also appears to be a common type of cryptocurrency investment scheme that uses social media groups, such as WhatsApp groups, to solicit and/or guide investors in cryptocurrency trading.
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.
How to Report
If you believe you are a victim of this alleged scam:
- Report to FBI
- If you are outside Washington State: contact your local Securities Regulator.
- If you are a Washington State resident: Submit a Complaint for statistical purposes.
Additional Resources:
- Customer Advisory: Avoid Forex, Precious Metals, and Digital Asset Romance Scams | CFTC
- Protecting Yourself from Financial Fraud (wa.gov)
- Virtual Currency, Cryptocurrency, and Digital Assets Information for Consumers
- Information regarding investing strategies, investment products, and how to protect yourself from fraud
- What You Can Do to Avoid Investment Fraud