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Cryptocurrency Fraud: California consumer alleges he was tricked into sending his cryptocurrency to a scammer

Oct 19, 2021

The California Department of Financial Protection and Innovation (DFPI) has received a complaint from a California resident regarding a crypto investment scam.

A California resident alleges he was tricked into sending cryptocurrency to a crook. The complainant told DFPI he met someone on a social media app who claimed to be a licensed broker with Blockchain. The “broker” convinced the complainant that if he transferred his cryptocurrency to the “broker” he would get his cryptocurrency back, plus interest, minus any service fees. The complainant transferred the cryptocurrency to a wallet. But instead of getting it back with interest, the “broker” told him that he would need to transfer additional funds in order to get the payout, and soon after cut off all communication with the victim. The victim then contacted the company he thought he was dealing with, and learned the individual he met online did not really work there. These allegations have not been verified by the DFPI.

This appears to be what is commonly called an “Advance Fee scheme,” which can take many forms, as discussed here:

The DFPI urges consumers to exercise extreme caution before responding to any solicitation offering investment or financial services. To check whether an investment or financial service provider is licensed in California, consumers may contact the Department for questions or inquiries at or call toll-free at (866) 275-2677. If a consumer believes a person or company has violated state law or acted improperly regarding a consumer financial product or service, they may file a formal complaint with the DFPI at

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Last updated: Oct 22, 2021 @ 12:50 pm