Bittime - The Ethfinance platform was reported by the Securities Division of the Washington State Department of Financial Institutions (DFI), suspected to be a fraudulent platform that caused huge losses to its investors. Let's look at this alleged fraud case, OK?
Ethfinance Platform Case Chronology
On Friday (14/06), BlockBeats reported on a consumer alert issued by the DFI, stating that an investor became aware of cryptocurrency trading platform Ethfinance through an unsolicited connection on LinkedIn.
Once connected, the investor moved $310,000 from his DeFi wallet to the platform. However, problems begin to arise when investors try to withdraw some of their initial capital and profits.
The investor was told that he needed to add more funds to complete the “smart contract” before he could withdraw his funds.
Investors who were suspicious did not send any additional funds. As a result, he was unable to withdraw funds from his account and his account was locked. This situation appears to be a case of "advance fee fraud," although the DFI stated that the allegations have not been fully proven.
Previous Ethfinance Fraud Reports
Source: Tokenomicsexplained.com
This is not the first time Ethfinance has been named in a fraud case. A California resident reported that he lost more than $165,000 after meeting someone online who offered to teach him how to make money through cryptocurrency options trading.
The person directed the victim to use the Ethfinance platform which resulted in the loss of the victim's funds.
Fraud Modus Operandi
Fraud that uses the advance fee fraud mode often involves requests for additional funds to complete transactions or withdraw funds that have already been invested.
In this case, Ethfinance asked investors to add funds to complete a “smart contract.” These requests are usually accompanied by pressure to act quickly, exploiting investors' fears of missing out on promised profits.
These scams often start with unsolicited contacts, such as those experienced by investors connecting via LinkedIn.
After gaining the victim's trust, the fraudster directs them to move funds to a fake platform. When victims try to withdraw funds, they are told that additional payments are required to complete the transaction.
Preventive Steps to Prevent Fraud
For investors, it is important to always be alert and careful in choosing an investment platform, especially in the world of cryptocurrency which is prone to fraud. Here are some preventative steps you can take:
- Platform Verification: Always conduct in-depth research on an investment platform before moving funds. Look for reviews and reports from trusted sources.
- Beware of Unknown Contacts: Don't easily believe investment offers that come through unknown contacts, whether via email, social media, or professional platforms such as LinkedIn.
- Don't Rush: Scammers often pressure victims to act quickly. Take the time to examine and consider the offer carefully.
- Check Regulations: Make sure the investment platform is registered and regulated by a trusted financial body.
Conclusion
The Ethfinance case highlights the importance of vigilance in investing, especially in a world of cryptocurrencies that is not yet fully regulated and supervised. This kind of fraud can happen to anyone, especially those with less experience in digital investing.
By always being careful and conducting in-depth research, investors can protect themselves from the risk of fraud, avoid the Ethfinance platform and ensure that their funds are placed on a safe and trustworthy platform.
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To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet.
For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn Complete Guide How to Buy Crypto on Bittime.
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DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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