The FBI has issued a warning about a cryptocurrency scam that has allegedly wiped out the life savings of some Americans.
According to a report by abc13, the FBI claims that ICHCoin is a sophisticated scam disguised as a cryptocurrency investment crash course, which has defrauded millions of dollars from victims across the U.S.
Amanda Culver, assistant special agent in charge at FBI Houston, told the media platform that the scammers behind ICHCoin have been misleading individuals since December 2023, accumulating approximately $30 million in thefts through the app. Some victims have reportedly lost their entire life savings.
Culver emphasized that scammers easily target victims because of the widespread interest in cryptocurrency investment, highlighting the crucial need for thorough research before making any financial commitments.
The FBI is actively investigating the scam and has encouraged victims to share any information related to ICHOCoin or similar schemes by completing their online questionnaire.
According to Culver, the scam operates in several stages. Initially, scammers target victims on social media platforms such as Facebook and Instagram, enticing them with offers to educate them about cryptocurrency investing and promising significant profits. Once convinced, victims are directed to messaging platforms like WhatsApp, where a fake professor or instructor contacts them to continue the scam.
While Culver did not elaborate on the subsequent steps of the scheme, it is noteworthy that the Washington State Department of Financial Institutions had already flagged ICHCoin in one of its warnings in July.
According to the agency’s statement, victims were enticed into the “Excellence and Innovation Fortune Business School,” a front for the ICHCoin scam, where they were placed in groups managed by fake academics. These groups provided daily trading signals and investment tips promising substantial returns and lured their victims into using the ICHCoin app. The app reportedly showed fake returns, and attempts to withdraw funds led to frozen accounts or scammers disappearing.
Culver emphasized recognizing red flags, particularly unsolicited messages that promise high returns or “free money,” as clear warning signs of scams.
The FBI has significantly increased its efforts against cryptocurrency scams recently. This warning is the second one since August 2024, when it cautioned about a scheme in which fraudsters impersonate exchange employees to steal funds.
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