The Washington State Department of Financial Institutions (DFI), Securities Division has received a complaint regarding WTOCoin.com, doing business as WTOCoin Ltd. and WTO Capital Foundation, a website claiming to be “An open and efficient environment for trading blockchain digital assets.”
Further review of the WTOCoin website revealed that the company posted real certifications from legitimate organizations including the Securities and Exchange Commission (SEC), the Financial Crimes Enforcement Network (FinCEN) and the Colorado Secretary of State (SOS). The names and addresses on these forms are likely fake. Investors should be aware of the following red flags:
Form D filings are not an indication that an individual or firm is registered with the SEC to sell securities or that the investment is legitimate. An issuer of securities files a Form D to claim that the investment is exempt from registration with the SEC. The information about the investment provided in a Form D filing is not verified by the SEC. Investors should be cautious of any individual or firm that refers to a Form D filing as evidence that the investment is legitimate.
Any inclusion of a business on the MSB Registrant Search Web page is not a certification of legitimacy and should not be interpreted as an endorsement of the business. Information provided to FinCEN by the MSB Registrant upon filing is not verified.
In this particular case, the company was registered as a non-profit organization, under the name WTO Capital Foundation, with the Colorado Secretary of State and posted a Certificate of Good Standing on WTOCoin.com. Per the Colorado SOS, a Certificate of Good Standing only indicates that a business has met the statutory filing requirements with their office and is not an indication that the business is reputable.
The investor that filed the complaint was introduced to WTOCoin.com through a Facebook ad. After inquiring about the opportunity, they were put into a WhatsApp group called “Tsunami” with a “Professor” named Andrew and his “Personal Assistant” named Joanna. Within the group, there were several “teams” separated by the amount invested. In order to join the lowest tier team, the investor was given what they thought was 30,000 USDT, loaned via the WTOCoin platform by Joanna. The investor proceeded to get a loan from their bank to pay her back but was asked to send the funds to her personal wallet, rather than through the WTOCoin platform.
The investor invested approximately $70,000 into the WTOCoin platform and invested into an “AI ETF program” that would generate 72% profit every 30 days. The total value of the investment reached $560,000. When the investor attempted to withdraw, they were prompted to pay a 20% broker fee. The investor continued to invest in fear they would lose all their money if they didn’t and has only been able to withdraw $100. Shortly before the website was taken down, a system prompt was added to the website that claimed WTO was working on a merger and would be liquidating their assets. The investor has lost all ability to access their account. These allegations have not been verified by DFI.
This appears to be what is commonly called Advance Fee Fraud, which can take many forms.
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 formal complaint with the Securities Division.
Additional Resources
Virtual Currency, Cryptocurrency, and Digital Assets Information for Consumers
What You Can Do to Avoid Investment Fraud