Overview of Washington State DFI Alert on Crypto Scam:
Washington State DFI issued a public alert about a $310,000 crypto scam involving an alleged crypto exchange called Ethfinance. An investor encountered difficulties withdrawing funds, leading to suspicions of fraudulent activities.
Investor Complaint and Alleged Fraudulent Transactions:
An investor complained to the Washington State DFI Securities Division after failing to withdraw $310,000 worth of cryptocurrency from Ethfinance, a platform introduced through a LinkedIn friend request. The investor transferred funds but faced obstacles in accessing his account and retrieving his initial investment.
Warning About Investment Scams and Regulatory Actions:
The DFI cautioned against schemes resembling Advance Fee Fraud, where scammers demand upfront payments without delivering promised gains. In addition to Ethfinance, the DFI issued alerts regarding suspected fraud by cryptocurrency platforms WTOCoin and Foundation-coin. Consumers were advised to be cautious with investment solicitations and verify the legitimacy of investment professionals before engaging with them.
