California’s DFPI Raises Red Flag Concerning 17 Crypto Websites

Californian regulator, the Department of Financial Protection and Innovation (DFPI) has issued warnings concerning seventeen cryptocurrency websites and brokers that are suspected of illicit activities.

The warnings which are now public on the DFPI consumer alert page were published after several customers laid complaints of losses up to $2,000 to around $1.2 million.

Between December 27th and December 28th, the Californian financial regulator stated that the listed seventeen entities “appear to be engaged in fraud against California consumers.”

A few of the called-out firms are Tahoe Digital Exchange, TeleTrade Options, Tony Alin Trading Firm, Hekamenltd/Tosal Markets Limited, Trade 1960, Yong Ying Global Investment Company Limited, Unison FX, VoyanX.com, ZC Exchange, UniSwap LLC and eth-Wintermute.net amongst others. 

Markedly, UniSwap LLC and eth-Wintermute.net are impersonating two heavyweights in the crypto industry who are involved in legal businesses.

For now, the DFPI has only stated that these websites seem to look like they are engaged in fraudulent operations. The California regulator has not had such a large number of suspected fraudulent entities in a long time which goes to signify that the number of crypto scams has jumped thus far this year.

Scammers Utilize ‘Pig Slaughtering’ Scam Scheme

Since the DFPI is the agency responsible for the administration of state lending and banking laws, it is normal for the regulator to sporadically alert users of any irregularities discovered or being investigated as regards any company or business. The most recent of such DFPI bulk alerts was in mid-June when it frowned at the activities of twenty-six presumed illicit websites. 

From a thorough investigation, it was discovered that most of these websites that are suspected to be fraudulent have a common theme which is related to ‘pig slaughtering’ scams. An individual or group of people comes up with a pseudo-identity after which they form relationships with unsuspecting individuals online either through social media or messaging and dating apps.

Once they are sure to have gained the trust of their victims, they begin to coax them with investment opportunities that often sound blissful.

At the end of the day, the victims invest their crypto in a fake version of a real website. The Delaware Department of Justice’s Investor Protection Unit once suspended the activities of twenty-three firms for the same reason.

The post California’s DFPI Raises Red Flag Concerning 17 Crypto Websites appeared first on Blockchain, Crypto and Stock News.