The Washington State Department of Financial Institutions (DFI) has issued a public alert over a $310,000 crypto scam involving the trading platform Ethfinance. On June 13, the DFI reported that an investor, introduced to Ethfinance via LinkedIn, was unable to withdraw his funds after being asked to add more money to complete a “smart contract.”
Ethfinance allegedly locked the investor’s account when he refused to send additional funds, raising concerns of an “Advance Fee Fraud.” This case highlights a growing trend where scammers promise high returns and then demand upfront fees before allowing withdrawals.
Besides Ethfinance, the DFI also warned against WTOCoin and Foundation-coin, which similarly deny withdrawal access after deposits. The DFI emphasized the need for consumers to verify investment professionals’ licenses before engaging in financial services.
The alert underscores the increasing complexity and risks within the crypto investment space, urging heightened vigilance among investors.
