DFPI Has Sent Out A Warning About 17 Crypto Sites

The California Department of Financial Protection and Innovation (DFPI) has identified 17 suspect cryptocurrency websites, including crypto brokers. These websites are suspected of engaging in fraudulent activity.

The warning was sent two days after these 17 crypto websites and brokers seemed to be engaging in fraud. On December 27 and 28, the notices were posted on the Consumer Alert page.

Some listed companies are Yong Ying Global Investment Company Limited, TeleTrade Options, Tahoe Digital Exchange, VoyanX.com, Hekamen Ltd./Tosal Markets Limited, Trade 1960, Tony Alin Trading Firm, Unison FX, VoyanX.com, and ZC Exchange.

According to most of these warnings, pig-slaughtering scams include someone or a group. Additionally, they are creating a phony identity online to develop fake connections via social media, messaging services, and dating apps.

As per the DFPI:

The DFPI urges consumers to exercise extreme caution before responding to any solicitation offering investment or financial services. To check whether an investment or financial service provider is licensed in California.

Furthermore, in June 2022, the DFPI issued a warning to customers about cryptocurrency fraud. The regulatory agency has issued warnings to over 26 fake cryptocurrency websites.

Most Ridiculous Crypto Scams 

The warnings were given in response to citizen complaints against cryptocurrency brokers and dealers, citing the DFPI, who said that petitioners have alleged losses ranging from $2,000 to $1.2 million in certain cases. The DFPI, on the other hand, just says that these websites appear fraudulent.

However, ‘Pig-slaughtering scams’ and ‘Advance Fee Scheme scams’ are the two most popular types of fraud. In the case of pig-slaughtering scams, a person or group creates a fake identity and builds fraud on false connections formed mostly on social media.

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Moreover, friendships, business collaborations, and even romance may all be part of these ties. The scammer normally spends significant time developing these phony relationships before gradually switching to talks about investment possibilities that are typically described as “too good to be true.”

The victim finally ends up investing in cryptocurrencies through a fraudulent website or sending cash to a fake wallet address. Finally, the scammer cuts off all lines of contact.