Cryptocurrency website coinbits.vip appears to be engaged in fraud against California consumers

The California Department of Financial Protection and Innovation (DFPI) has received a complaint from a California resident regarding coinbits.vip, an offshore cryptocurrency trading platform that promising guaranteed returns on investments.

A California resident told DFPI he deposited $15,000 and was told he had made a profit of $25,000. However, when he asked to withdraw the money, he was told to pay a 25% tax upfront. The victim paid $17,500 in taxes and security fees, hoping to withdraw $50,000 of the money, but then was told he need to pay an additional $58,000 in tax before he could withdraw his profits. 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: https://www.fbi.gov/scams-and-safety/common-scams-and-crimes/advance-fee-schemes.

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 ask.dfpi@dfpi.ca.gov 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 https://dfpi.ca.gov/file-a-complaint/.