California Regulator Alerts Of 16 Allegedly Fraudulent Crypto Websites

Key Points:

• California Department of Financial Protection and Innovation (DFPI) has issued 17 warnings to cryptocurrency brokers and websites it believes to be fraudulent.
• eth-Wintermute.net and UniSwap LLC are imitation websites impersonating two well-known names in the cryptocurrency industry.
• The ultimate goal is to convince the victim to invest in cryptocurrency by sending money to a dubious wallet address or through a copycat website, like UniSwap LLC and eth-Wintermute.net, in this case.

Over the course of two days, the California Department of Financial Protection and Innovation (DFPI) has issued 17 different warnings to cryptocurrency brokers and websites it believes to be fraudulent.

Among the companies on the list are, to name a few, 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, ZC Exchange.

Additionally, eth-Wintermute.net and UniSwap LLC are two imitation websites impersonating two well-known names in the cryptocurrency industry.

The DFPI’s consumer alert page now lists 17 alerts from December 27 and 28 warning that these businesses “appear to be involved in fraud against California consumers.”

The DFPI rarely posts so many notifications at once, indicating that the number of reports of cryptocurrency scams may have increased in the year’s final months. Occasionally, the DFPI will broadcast notices concerning company investigations or alerts about specific instances.

The DFPI last issued many crypto scam alerts on June 15, when it raised the red flag over 26 suspect crypto platforms.

The warnings were issued in response to public complaints about the brokers and websites; according to the DFPI, the complainants claimed to have lost anything from $2,000 to as much as $1.2 million in certain instances.

DFPI only claims that these websites “appears to be engaged in fraud”

Most of these alerts claim that pig-slaughtering scams, in which a person or group creates a false online identity to forge ties or friendships on social media, messaging services, and dating apps, are standard.

In a romance or pig slaughter scam, the con artist would typically spend weeks or months cultivating the fictitious family to win the victim’s trust before gradually changing the subject to investments and luring them in with investment “opportunities” that are frequently too good to be true.

The ultimate goal is to convince the victim to invest in cryptocurrency by sending money to a dubious wallet address or through a copycat website, like UniSwap LLC and eth-Wintermute.net, in this case.

In addition to killing pigs, the alleged con artists are also accused of using a technique known as the “Advance Fee Scheme,” in which they demand substantial sums of money to process fictitious withdrawals from their fraudulent websites.

If the target falls for it, the con artist makes off with the initial payment and a bonus slice before immediately breaking off all contact.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

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