- DFPI has issued a warning against 17 crypto websites
- Department mainly focuses on two imitator websites
- A similar admonition was posted in June against crypto firms
In the last two days, The California department of financial protection and innovation (DEPI) has shot 17 separate reprimands against crypto brokers and websites that are suspected of defrauding. Authorities are lining up to tackle the rising number of crypto scams in the US. The list includes various companies;
- Tahoe Digital Exchange
- TeleTrade Options
- Tony Alin Trading Firm
- Tosel Markets Limited
- Trade 1960
- Yong Ying Global Investment Company Limited
- Unison FX
- ZC Exchange and more
The warning was issued on 27 and 28 December 2022, the DFPI’s consumer alert page posted 17 warnings mentioning that the following companies were suspected to be involved in fraud against California’s consumers.
Two same sites are posing as two big names in the crypto sector name as eth-Wintermute.net and UniSwap LLC. Wintermute is a global crypto market maker, while Uniswap is the world’s biggest decentralized crypto exchange.
Earlier this year, DFPI posted an enormous number of crypto scam alerts for around 26 crypto platforms. The alert came to light when California’s crypto investors filed complaints against representatives and sites. The DFPI stated the people have reported having lost somewhere in the range of $2000 to $1.2 million in specific cases.
In September 2022, as per the report, the Governor of California, Gavin Newsom, refused to sign a bill to make the simple way for the licensing and regulatory framework for crypto—the bill would have required crypto firms to register with local authorities before offering their services to investors or consumers in California.
Pig-slaughtering scams are the major thread supposed to be in most of these associated warnings, which involve an individual or group of fraudsters creating a fake identity online to build fake relationships or friendships via social media and dating apps.
Although the prominent aim of the fraud is to get the victim to invest in crypto through the same version of the original website —- such as UniSwap LLC and eth-Wintermute.net —- or by transferring funds to a dubious wallet address.
If the victim falls for it, the scammer not only pockets the initial investment but an extra slice on top before promptly cutting off all forms of contact.
DEFI asked California’s consumers to be cautious before taking any action regarding any financial services. Check whether that financial service provider is licensed in California.