Washington State Probes Alleged Crypto Fraud Linked to Fake Nasdaq Exchange

  news.bitcoin.com 30 August 2024 12:00, UTC

The financial watchdog in Washington State is currently probing a complaint regarding a cryptocurrency platform that allegedly purports to be associated with the Nasdaq Stock Exchange. This inquiry began after an investor reportedly put in $200,000 following a solicitation on Facebook that transitioned to communication over Whatsapp. The regulator has flagged this as a potential “Advance Fee Fraud” and advises the public to be wary of unsolicited investment pitches.

Washington State Investigates Alleged Crypto Fraud Tied to Fake Nasdaq Exchange

The Washington State Department of Financial Institutions (DFI) announced Wednesday that its Securities Division is investigating a complaint about a cryptocurrency platform that is claimed to have ties with the Nasdaq Stock Exchange.

According to the regulator, an investor was introduced to a cryptocurrency investment opportunity through a solicitation on Facebook. After initial contact, the conversation moved to Whatsapp, where the investor ultimately invested approximately $200,000. The DFI stated:

The account purportedly increased in value to approximately $659,000, and the investor wanted to withdraw some of the funds.

“The investor was required to pay a fee for taxes incurred before the funds would be released. The investor did not pay the fee and has not been able to withdraw funds from the account,” the regulator detailed.

The department underscored that the Nasdaq Stock Exchange is not involved in these activities and does not facilitate cryptocurrency trading. While the DFI has not yet confirmed the specifics of the complaint, the regulator warned:

This appears to be what is commonly called an ‘Advance Fee Fraud.’

The DFI urges consumers to be vigilant about unsolicited investment opportunities, especially those presented through social media or messaging apps. Anyone suspecting investment fraud is advised to report it to the DFI Securities Division or their state securities regulator.

What do you think about this alleged cryptocurrency scam and the warnings from the DFI? Let us know in the comments section below.

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