Ethfinance: A Dubious Platform Promoted via LinkedIn

The investor had been using a supposedly cryptocurrency trading website named “Ethfinance.” The DFI says “The investor learned of Ethfinance through a random friend request on LinkedIn.” Hoping to profit from crypto trading, the investor moved $310,000 total from his “DeFi wallet” to the site.

Advance Fee Fraud Tactics Leave Investor Unable to Withdraw Funds

The investor was advised he needed to pay additional money to finish the “smart contract” and remove the money when he tried to withdraw some of his original principle and declare winnings. The DFI said, “The investor did not send any more money. The investor’s account is locked and he has been unable to take any withdrawals.

Though it has not confirmed the claims, the regulator said the case looks to be a “Advance Fee Fraud.” Promising victims large sums of money, goods, or services in return for a nominal upfront payment, advance fee fraud is a scam. Once paid, the con artist either vanishes or encourages the victim to send more cash for other items.

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The crypto fraud tracker maintained by Washington DFI reveals that Ethfinance has also come up in past complaints. After meeting an internet stranger offering to teach them how to make money trading crypto options, a California resident claimed losing over $165,000. When the “CEO of Crypto Customer Service” on Telegram asked them to send 25% of the earnings as “taxes,” the investor knew it was a fraud.

Washington DFI Issues Multiple Alerts on Crypto Scams

On June 13 the Washington DFI posted three more notifications. Two were for purportedly dishonest crypto exchanges, and the other dealt with a bogus investment management platform. These cautions highlight the need of awareness and caution while handling unwanted offers and foreign web platforms in the fast changing crypto scene.

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