DFI received a complaint from a Washington resident concerning a cryptocurrency trading platform and its website, www.b2bxenz.com. The b2bxenz.com website represents that a user can safely “Trade online anytime, anywhere…7x24 hours,” with “Bank-level comprehensive security protection.” The b2bxenz.com website purports to offer trading in “dozens of encrypted currencies” and “100+ digital currency [sic] as well as “Fiat currency transaction [sic].”
The b2bxenz.com website appears to spoof another online cryptocurrency trading platform, b2bx.com. The b2bxenz.com website is a domain registered in China in March 2022. The b2bx.com website is a domain registered in India in December 2001.
The victim told DFI that they were scammed into transferring money to an account they established on the b2bxenz.com platform by a stranger they met online through the Hinge dating app. The stranger represented that they owned a trading business in the Pioneer Square neighborhood of Seattle and communicated with the victim via Telegram and WhatsApp. Soon after meeting, the stranger offered to teach the victim how to make money trading in cryptocurrency through short-term binary trades. The stranger first had the victim set up an account with Coinbase. The stranger then sent a separate URL link for another trading platform referred to as "B2BX,” but was actually a website at https://www.b2bxenz.com. The stranger instructed the victim to download the platform to their phone and set-up an account, then to purchase Bitcoin via their Coinbase account and transfer the Bitcoin to their b2bxenz.com account. The stranger said that the Coinbase platform was too limited in its use, so another platform was needed to place the short-term binary trades.
The victim started with transferring $1,500 worth of Bitcoin to their b2bxenz.com account and was initially able to withdraw $500, which built trust in the process. The victim then transferred about $10,000 worth of Bitcoin to their b2bxenz.com account and appeared to be making money on the trades directed by the stranger. The victim was convinced to invest more until about $20,000 worth of Bitcoin was transferred to their b2bxenz.com account. The stranger soon began pressuring the victim to transfer even more funds by representing that they had transferred $46,000 of their own funds to the victim’s account. The stranger told the victim that having more money in the account would help reduce trading risk. The victim refused to transfer any more money when the stranger refused to meet in-person, and the stranger began harassing the victim.
Once all the trades were supposedly final and the victim tried to withdraw their funds, the purported b2bxenz.com customer service informed the victim that $28,476 in taxes, or 20% of the purported profits of approximately $145,000, were required to be paid before any funds could be withdrawn. After the victim paid the $28,476, the b2bxenz.com customer service informed the victim that an additional $30,000 was due because the victim was detected to be a new user. The $30,000 fee was supposedly for required security checks due to increased money laundering schemes on these types of exchange platforms. The victim did not pay the $30,000 and was subsequently locked out of their account, which was actually an account controlled by the stranger. These allegations have not been verified by DFI.
This appears to be what is commonly referred to as a “Romance Scam” as discussed here: Online Romance Scams and How to Avoid Them (wa.gov)
This also 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 DFI, 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