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Cryptocurrency website; appear to be engaged in fraud against California consumers

Jun 15, 2022

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

A California resident told DFPI he was befriended on Facebook by someone calling themselves Wenwen Chen.  Wenwen asked to move the conversation moved to Line (a communication platform similar to WhatsApp).  They discussed the fact that the victim wanted to make additional income but was not making any money investing in stocks.  Wenwen told him about a trading platform she used to make millions.  She said if he was interested she could guide me every step of the way to pay off all his debt.  The victim agreed and invested a very small amount and was able to withdraw a small amount out.  Then Wenwen persuaded the victim to put in more money, promising him greater returns.  Wenwen then said the  platform offered “rewards.” The victim thought he had earned $18,000, but was told he had to put in $60,000 within 7 days or the platform would deduct 20% of his money every day. At one point, the victim asked to take money out, but was told me he had to prove his identity. He attempted to do that, but was told the system failed, and he would have to wire $70,000 within 7 days or he would lose all his money.  The victim put in more money, and then was told his account was frozen and he would have to deposit 20% of his balance within 7 days to unfreeze it.  All in all, the victim put in $240,000 before he realized he had been scammed. 

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: Jun 15, 2022 @ 2:41 pm