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The Oregon Department of Financial Regulation (DFR) has warned crypto investors to do their homework before funding crypto trading platforms.
Many cryptocurrency trading apps and websites are just fake platforms set up by scammers to take investors’ money and not give them back. Investors are promised huge profits in a short period of time, and account balances grow rapidly, but if they don’t need to deposit more money with ‘withdrawal fees’ or ‘taxes’, they can keep their funds. It cannot be withdrawn.
Scammers will continue to extort these fees until the investor becomes suspicious. The accounts were then emptied and the scammers disappeared along with the investor’s funds. Before sending money to her website or app for cryptocurrency trading, research the company and her web address to make sure it is legitimate.
Scammers also look for opportunities to re-victimize people who have already suffered and are trying to find ways to recover their losses. For example, a recent scam involved a website that claimed to be controlled by the U.S. State Department and said it was working to return FTX customer assets to the State Department following the collapse of FTX. (Read more about the collapse of FTX here).
The website requested the investor’s FTX username and password and other account information. The US Department of State did not create this website. Please note that if someone contacts you asking for your account username and password, it is most likely a scam.
“The crypto trading market is fluid and full of people trying to take advantage of you,” said DFR administrator TK Keen. “I’ve said this before, it may sound too good to be true, but it probably is. Do your homework and invest wisely to protect your usernames, passwords, and other sensitive data. I encourage everyone to be passionate about
According to the North American Association of Securities Administrators, there are a number of common schemes fraudsters exploit as new investment products and opportunities. Some of them are:
- Fake digital wallets: Digital wallets are used to store, send and receive cryptocurrencies. Scammers create fake digital wallets to lure users into providing a private key or code to open the wallet. Once the crook receives the private key, they can steal all the cryptocurrencies from the owner’s digital girlfriend’s wallet.
- Pump-and-dump: A group of individuals work together to buy a low-trading cryptocurrency, promote it on social media to boost demand and price, and sell at a coordinated sale. Prices plummet, leaving cryptocurrencies devalued for those unaware of the scheme.
- Multi-level marketing platform: Companies attract investors with low-risk, high-interest promises. These investors are encouraged to recruit more members.
“A lot of these things seem obvious after the fact, but there are a lot of things in this industry that look and sound legitimate,” Keane said. “Unfortunately, there are many people in the cryptocurrency world trying to take advantage of you. increase.”
For more information on filing a complaint, please visit the DFR website.
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About the Oregon DFR: The Financial Regulatory Division is part of the Consumer and Business Services Division, Oregon’s largest business regulatory and consumer protection agency. Visit dfr.oregon.gov and www.dcbs.oregon.gov.
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