Key Ideas:
- 17 warnings have been sent to cryptocurrency brokers and websites by the California Department of Financial Protection and Innovation (DFPI), which believes they are fraudulent.
- Two spoof websites mimicking well-known figures in the cryptocurrency field are eth-Wintermute.net and Uniswap LLC.
- The ultimate objective is to persuade the victim to send money to a shady wallet address or through a replica website, in this case Uniswap LLC and eth-Wintermute.net, in order to invest in cryptocurrencies.
The California Department of Financial Protection and Innovation (DFPI) has warned 17 different cryptocurrency brokers and websites it considers to be fraudulent over the course of the last two days.
Tahoe Digital Exchange, TeleTrade Options, Tony Alin Trading Firm, Hekamenltd/Tosal Markets Limited, Trade 1960, Yong Ying Global Investment Company Limited, Unison FX, VoyanX.com, and ZC Exchange are just a handful of the organizations on the list.
Additionally, two fake websites imitating two well-known names in the cryptocurrency business are eth-Wintermute.net and Uniswap LLC.
17 notifications from December 27 and 28 are currently included on the DFPI's consumer alert page, stating that these companies "appear to be participating in fraud against California customers."
It is unusual for the DFPI to publish so many alerts at once, suggesting that the number of reports of cryptocurrency frauds may have surged in the last few months of the year. The DFPI will occasionally issue announcements on corporate investigations or alerts regarding specific incidents.
On June 15, when it sounded the alarm about 26 questionable crypto platforms, the DFPI issued a number of crypto scam advisories.
The warnings were given in response to complaints from the general public regarding the brokers and websites; the DFPI claims that these reports alleged losses ranging from $2,000 to as high as $1.2 million in some cases.
These Websites "Appears to be Engaged in Fraud," According to DFPI's Sole Claim
According to the majority of these warnings, pig-slaughtering scams, in which an individual or group creates a phony online persona in order to establish relationships or friendships on social media, messaging apps, and dating websites, are common.
In a romance or pig slaughter scam, the con artist would often spend weeks or months building the victim's confidence by fostering the phony family before gradually moving the subject to investments and luring them in with investment "opportunities" that are frequently too good to be true.
The ultimate objective is to persuade the victim to send money to a shady wallet address or through a replica website, in this case Uniswap LLC and eth-Wintermute.net, in order to invest in cryptocurrencies.
The alleged con artists are also charged with using the "Advance Fee Scheme," in which they demand large sums of money to execute phony withdrawals from their fraudulent websites. This tactic is in addition to allegedly killing pigs.
If the target falls for it, the con man gets away with the money and a bonus slice before cutting off all communication.
