Over the past 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.
Tahoe Computerized Trade, TeleTrade Choices, Tony Alin Exchanging Firm, Hekamenltd/Total Markets Restricted, Exchange 1960, Yong Ying Worldwide Speculation Organization Restricted, Harmony FX, VoyanX.com, and ZC Trade are a few selections of the list’s companies.
Moreover, two copycat websites are masquerading as two big names in the crypto sector: eth-Wintermute.net and UniSwap LLC.
On December 27 and 28, 17 alerts were placed on the DFPI’s consumer alert page, saying that it appears that these firms are defrauding Californian consumers.
The DFPI last issued such a large number of crypto trick warnings on June 15, when it alerted the public to more than 26 suspicious crypto platforms.
The fact that the DFPI posted so many notifications at once is unusual, which raises the possibility that the number of reports of cryptocurrency scams increased in the final months of the year. The DFPI frequently publishes alerts about company investigations or alerts about specific events.
The warnings were issued in response to complaints from locals who had issues with the representatives and sites. According to the DFPI, customers have reported losing anything from $2,000 to as much as $1.2 million in some instances.
Most of these alerts reference “pig butchering scams” as a central theme. In these schemes, a person or group creates a false online identity in order to forge relationships and friendships on social media, messaging services, and dating apps.
The main aim is to convince the victim to invest in cryptocurrency either by moving money to a shady wallet address or through a fake website that looks just like a legal one, such as UniSwap LLC and eth-Wintermute.net in this case.
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