Cryptocurrency broker TeleTrade Options appears to be engaged in fraud against California consumers

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

The victim was enticed to invest $500 into the cryptocurrency company, TeleTrade Options, which claimed it would trade his money for a profit. After 5 days he was told his trade had made $11,000 in profit, but in order to get the money, he had to pay a $3,000 brokerage fee first. He asked that they deduct the $3,000 from the $11,000 but was told they couldn’t do that. He then asked for just his $500 back and they refused. The company operated a website at https://www.TeleTradeOptions.com.

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. This also appears to be what’s known as a Social Media Scam, which is described here: https://dfpi.ca.gov/2022/05/20/romance-scams-and-crypto-assets-fact-or-fraud/

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/.