FBI warns of ICHCoin crypto scam costing Americans their life savings

The FBI is sounding the alarm about a cryptocurrency scam that has cost some Americans their entire life savings.

According to an abc13 report, the bureau alleges that ICHCoin, which lured victims under the pretext of offering a crash course in cryptocurrency investing, was an elaborate scam that skimmed millions of dollars from individuals in the United States.

FBI Houston assistant special agent in charge Amanda Culver told the media outlet that the perpetrators behind the scam have been duping people since December 2023 and stealing approximately $30 million through the ICHCoin app. Some victims allegedly lost their entire lifesaving equipment.

Culver added that scammers can easily find victims “because people are so interested in investing in cryptocurrency” and emphasized the importance of doing proper research before making any investments.

The FBI is currently investigating this scam and has asked victims to provide information about ICHOCoin or similar scams by filling out their online surveys.

How does ICHCoin scam work?

According to Culver, the fraud works in multiple stages. Scammers primarily approach victims through social media platforms such as Facebook and Instagram. Icebreaker is an offer to educate the victim about cryptocurrency investing and promises to open the door to lucrative profits through crypto investments.

Once the victims are convinced, they are directed to messaging platforms such as WhatsApp, where a fake professor or teacher contacts them to continue the scam. While Culver did not provide further details on how the scam would play out next, the Washington State Department of Financial Institutions flagged ICHCoin in one of its alerts in July.

At the time, crypto.news reported that victims were lured into the “Fortune Business School of Excellence and Innovation,” a front for the ICHCoin scam, and added to groups controlled by these fake academics offering daily trading signals and investments. Tips for big returns.

This is also where victims are introduced to a fake crypto trading platform, in this case the ICHCoin app, and encouraged to invest. Culver added that scammers often encourage victims to lie to banks when making transfers to these platforms. The app also misrepresents ROI data, but when any profits are attempted to be withdrawn the accounts are frozen or the scammers ghost the victim.

He also stressed the importance of recognizing red flags, especially when receiving “unsolicited messages” promising high returns or offering “free money” to investors, emphasizing that these are clear warning signs.

FBI hunting crypto scammers

In recent months, the FBI has stepped up its crackdown on cryptocurrency scams and stepped up investigations. The bureau has issued warnings about crypto threats multiple times in September alone.

For example, on September 3, the FBI warned businesses that deal with funds traded on crypto exchanges that the notorious North Korean hacking group Lazarus had begun using “sophisticated and elaborate” tactics to infiltrate their systems. In a later report, the bureau found that more than $5.6 billion was lost in scams and scams involving cryptocurrencies, and that the most targeted demographic was individuals over the age of 60.

In early October, the federal agency also charged an individual with attempting to extort cryptocurrency assets.