Friend Request to Financial Nightmare
A Washington investor lost a whopping $310,000 to Ethfinance, a crypto trading platform. The investor was lured in through a random LinkedIn friend request.
Red Flags and Suspicious Tactics
Ethfinance’s customer service demanded the investor send more funds to complete a “smart contract” before allowing withdrawals. This is a common tactic in advance fee scams.
Regulator’s Warning
The Washington State Department of Financial Institutions (DFI) has issued a warning about Ethfinance, classifying the case as a potential “Advance Fee Fraud” scheme.
Social Media: A Breeding Ground for Scams
Scammers are using social media to target potential victims, especially on platforms like LinkedIn. Cryptocurrency’s complexity and lack of regulation make it easier for them to hide their fraudulent activities.
Caution for Investors
The DFI urges investors to be wary of unsolicited investment offers, especially those from social media or messaging apps. Any investment professional operating in Washington must be licensed with the DFI.
Other Platforms Flagged
The DFI has also flagged two other crypto trading platforms, WTOCoin and Foundation-coin, for similar red flags, including difficulties with withdrawing funds.
