California Regulator Issues Warning Against 17 Crypto Websites

Over the course of two days, the California Department of Financial Protection and Innovation (DFPI) issued 17 different warnings to cryptocurrency brokers and websites it accuses of being fraudulent.

Tahoe Digital Exchange, TeleTrade Options, Tony Alin Trading Firm, Hekamen Ltd./Tosal Markets Limited, Trade 1960, Yong Ying Global Investment Company Limited, Unison FX, VoyanX.com, and ZC Exchange are just a handful of the companies on the list. In addition, there are two forgeries masquerading as well-known names in the cryptocurrency industry: eth-Wintermute.net and UniSwap LLC.

At the time of writing, the DFPI’s consumer alert website had 17 warnings issued during the weekend of December 27 and 28, claiming that these firms “appear to be involved in fraud against California consumers.” It is unusual for the DFPI to issue so many notifications at once, indicating that the amount of crypto fraud complaints may have increased in the final parts of the year. The DFPI normally issues intermittent warnings concerning company investigations or notices about specific instances. The DFPI previously issued such a huge number of crypto scam alerts on June 15, when it issued warnings on 26 suspect crypto sites.

The warnings were issued in response to public complaints about the brokers and websites, with the DFPI noting that consumers have reported losses ranging from $2,000 to $1.2 million in certain instances. The DFPI, on the other hand, just states that these websites “appear to be involved in fraud.”

The majority of these cautions suggest that pig-slaughtering schemes include a person or group establishing a false identity online to develop fraudulent connections or friendships through social media, texting, and dating apps.

Along with the pig slaughter, the suspected fraudsters are reported to have used another method known as the “Advance Fee Scheme,” in which the bad actors are supposed to have requested enormous sums of money to process fraudulent withdrawals from their scam website. If the victim falls for it, the fraudster not only keeps the original investment, but also an additional chunk, before shutting off all kinds of communication.

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