Date Posted: 
Wednesday, August 28, 2024

The Washington State Department of Financial Institutions (DFI), Securities Division has received a complaint regarding “Nasdaq”, a purported entity affiliated with the Nasdaq Stock Exchange.

The investor learned of the cryptocurrency investment opportunity through a solicitation from an unknown individual on Facebook. The investor later communicated with the individual through Whatsapp. The investor invested approximately $200,000. The account purportedly increased in value to approximately $659,000, and the investor wanted to withdraw some of the funds. The investor was required to pay a fee for taxes incurred before the funds would be released. The investor did not pay the fee and has not been able to withdraw funds from the account.

DFI has not verified these allegations in the complaint.

The Nasdaq Stock Exchange is not connected to this type of activity and does not offer cryptocurrency trading on its exchange.

This appears to be what is commonly called and "Advance Fee Fraud". Learn more about advance fee fraud. It 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 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

Information regarding investing strategies, investment products, and how to protect yourself from fraud

What You Can Do to Avoid Investment Fraud