An invalid crypto trading platform is alleged to have made a profit of $310,000

An investor claims he lost $310,000 to a seemingly invalid crypto trading platform that he learned about through an unexpected LinkedIn contact request. Details of this sad incident were revealed in a consumer alert issued June 13 by the Washington State Department of Financial Institutions (DFI) Securities Division.

Suspicious platform promoted via LinkedIn: Ethfinance

The investor was using a so-called cryptocurrency trading site called “Ethfinance”. DFI, “The investor learned about Ethfinance through a random friend request.”said.

Hoping to make a profit from crypto trading, the investor transferred a total of $310,000 from his “DeFi wallet” to the site.

Advance price fraud methods prevented investor from withdrawing funds

When the investor tried to withdraw some brand new principles and interests, he was told that he would have to pay additional money to complete the “smart contract” and withdraw the money. DFI, “The investor did not send any more money. “The investor’s account is locked and cannot make any withdrawals.”said.

The regulator said that the incident appeared to be an “Advance Price Fraud”, although it did not confirm the allegations. Advance price fraud is a scam that promises victims a large amount of money, goods, or services in exchange for a small upfront payment. Once the payment is made, the scammer either disappears or encourages the victim to send more money for other things.

A crypto fraud tracker maintained by the Washington DFI reveals that Ethfinance has also been implicated in past complaints. A California resident claimed to have lost more than $165,000 after meeting a stranger online who wanted to teach him how to make money trading crypto options. When the “CEO of Crypto Customer Service” at Telegram asked them to send 25% of the interest as “tax”, the investor realized that this was fraud.

Washington DFI issues multiple warnings against crypto scams

Washington DFI issued three more notices on June 13. Two of them were for supposedly invalid crypto exchanges and the other was for an invalid investment management platform. These warnings highlight the need for awareness and caution when using unwanted offers and foreign web platforms in the rapidly changing crypto world.

This news was first published on the Coin Engineer website.