DFI has received a complaint from a Washington resident regarding XONSU, an alleged cryptocurrency exchange. The investor was introduced to XONSU by an individual they met on a dating website. The individual sent the investor a code to register on the XONSU website, www.xonsu.com. It appears the XONSU website has been taken down.
The individual introduced the investor to an initial coin offering (“ICO”) for Asset Libra (“ASL”). After starting an account on XONSU, the investor initially invested around $950. The investor eventually invested another $29,000. When the investor attempted to withdraw money from their account, XONSU declined because the investor did not have a premium account. The investor attempted to create a premium account but XONSU denied the investor’s request. The investor attempted to transfer the ASL coins from their XONSU account to their Coinbase wallet but the coins failed to transfer. The investor lost nearly $30,000 trading on the XONSU platform. 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. 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
Initial Coin Offerings (ICOs) – What to Know Now and Time-Tested Tips for Investors