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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 to have been scammed into transferring money to this supposedly San Francisco-based company for bitcoin mining purposes, after hearing about the company in a Facebook group. The investor registered on the site with an investment of $300, then was asked to pay an additional $300 registration fee. After that, he was informed that he had made money from bitcoin mining, but that he needed to pay 20% of the alleged profit in order to get his profits. Topbits Option claims “Professional Brokers and Miners” on its website. The company claims its address is 12 Bristol Suite, San Francisco, and operates a website at topbitsoption.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.

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 [email protected] 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/.