Investor put $1.1 million into crypto platform: banker suspected fraud
An investor said he invested $1.1 million in a foreign cryptocurrency trading platform on the recommendation of a woman who identified herself as an executive vice president of a major investment company in New York, United States. According to MarketWatch, the investor’s personal banker believes that the people involved in the scheme may be fraudsters.
According to the investor, from May 20 to June 30, the adviser controlled all of his actions on the platform, while communication took place via WhatsApp. She explained how to make bank transfers, what to tell the bank and how to withdraw funds, and allegedly contacted the cryptocurrency broker directly.
Balance of $2 million
The investor claims that as of June 30, the asset balance on the platform had risen to $2 million. The adviser allegedly guaranteed returns under which the amount was expected to reach $20 million by the end of August. The MarketWatch columnist noted that claims of possible fraud involving the platform had been posted on internet forums for more than seven months, and that the amounts displayed in the account may be fictitious.
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The investor has already contacted the FBI’s Internet Crime Complaint Center, but, according to him, it found the information provided insufficient. He also said that lawyers refused to take the case when they heard about a foreign market.
Signs of an investment scheme
The column stressed that promises of guaranteed investment profits and conducting financial transactions through WhatsApp are warning signs. Such schemes are called pig butchering: perpetrators gradually gain the victim’s trust and may show apparent profits or allow small withdrawals in order to encourage further investments.
The FBI warns that fraudsters may seek victims through social media, dating sites, text messages, messengers, advertising or intermediaries. The investor was advised to provide the FBI with all documents, contact information and transfer details. FINRA considers cryptocurrency fraud cases if they involve FINRA-registered brokers, brokerage firms or crypto assets that qualify as securities.
