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Tuesday, February 18, 2025
HomeSecurityWashington State Investigates Alleged Crypto Fraud Tied to Fake Nasdaq Exchange

Washington State Investigates Alleged Crypto Fraud Tied to Fake Nasdaq Exchange

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The Washington State Department of Financial Institutions (DFI) has announced that its Securities Division is investigating a complaint about a cryptocurrency platform that claims to have ties with the Nasdaq Stock Exchange. The regulator has flagged this as a potential “Advance Fee Fraud” and advises the public to be wary of unsolicited investment pitches.

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

However, 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 DFI underscored that the Nasdaq Stock Exchange is not involved in these activities and does not facilitate cryptocurrency trading.

The department warned that this appears to be an “Advance Fee Fraud,” a type of scam where fraudsters promise high returns in exchange for a fee, but ultimately fail to deliver on their promises. 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. The DFI is working to recover funds from the alleged fraud and is warning the public to be cautious of similar scams.

This investigation serves as a reminder of the importance of doing thorough research and due diligence before investing in any opportunity, especially those that seem too good to be true.

Source: Bitcoin.com

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