{"id":9284,"date":"2024-06-14T16:19:47","date_gmt":"2024-06-14T16:19:47","guid":{"rendered":"https:\/\/www.cryptometer.io\/news\/?p=9284"},"modified":"2024-06-14T16:19:50","modified_gmt":"2024-06-14T16:19:50","slug":"investor-loses-310k-to-alleged-crypto-scam-promoted-via-linkedin","status":"publish","type":"post","link":"https:\/\/www.cryptometer.io\/news\/investor-loses-310k-to-alleged-crypto-scam-promoted-via-linkedin\/","title":{"rendered":"Investor Loses $310K to Alleged Crypto Scam Promoted via LinkedIn"},"content":{"rendered":"\n

An investor claims to have lost $310,000 to an allegedly fraudulent crypto trading platform after being introduced to it through a random LinkedIn connection request. The Washington State Department of Financial Institutions (DFI) Securities Division issued a consumer alert on June 13 detailing the incident.<\/p>\n\n\n\n

Details of the Scam<\/h3>\n\n\n\n

The investor reportedly encountered the platform, called “Ethfinance,” through a LinkedIn friend request. Believing the platform to be legitimate, the investor transferred $310,000 from their DeFi wallet to Ethfinance, hoping to profit from crypto trading.<\/p>\n\n\n\n

However, when attempting to withdraw some of their principal and reported profits, the investor was instructed to add more funds to complete a “smart contract” necessary for withdrawal. The investor did not send additional funds and has since been unable to access their account, which has been locked.<\/p>\n\n\n

\n
\"\"
The website for the fraudulent exchange EthFinance is still currently online.<\/figcaption><\/figure><\/a><\/div>\n<\/div>\n\n\n

Advance Fee Fraud<\/h3>\n\n\n\n

The DFI suspects the case to be an “Advance Fee Fraud,” where victims are promised significant returns or services in exchange for upfront payments. Once the initial payment is made, scammers often request more fees for various reasons or simply disappear.<\/p>\n\n\n\n

Previous Complaints and Ongoing Issues<\/h3>\n\n\n\n

The Washington DFI’s crypto scam tracker revealed that Ethfinance had been mentioned in a previous complaint. A California resident reported losing over $165,000 after being offered guidance on trading crypto options by a stranger online. The victim realized it was a scam when asked by a supposed “CEO of Crypto Customer Service” on Telegram to send 25% of profits as taxes to complete a withdrawal.<\/p>\n\n\n\n

Broader Warning<\/h3>\n\n\n\n

On June 13, the Washington DFI also issued alerts for two other allegedly fraudulent crypto exchanges and one fraudulent investment management platform, highlighting the ongoing risks in the cryptocurrency space.<\/p>\n","protected":false},"excerpt":{"rendered":"

An investor claims to have lost $310,000 to an allegedly fraudulent crypto trading platform after being introduced to it through a random LinkedIn connection request. The Washington State Department of Financial Institutions (DFI) Securities Division issued a consumer alert on June 13 detailing the incident. 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