An investor claims to have lost $310,000 due to a potentially fraudulent cryptocurrency trading platform called "Ethfinance", which he found through a LinkedIn contact. According to a consumer alert from the Washington State Department of Financial Institutions (DFI), an investor transferred funds from his DeFi wallet to Ethfinance in hopes of profiting from cryptocurrency trading. However, when attempting to withdraw funds, they were asked to deposit more money to complete the “smart contract.”
After refusing to send additional funds, the investor discovered that his account was blocked and inaccessible. DFI suggests this is a case of "advance fee scams," where victims are tricked into paying upfront fees with promises of significant profits, only for the scammer to disappear or demand more money.
The Ethfinance scam was previously reported: Another California victim lost more than $165,000 after a stranger online convinced her to trade cryptocurrency options. The scam became apparent when the purported "CEO of Crypto Customer Service" demanded 25% of profits as "taxes" via Telegram.
On the same day, Washington DFI issued three additional warnings about fraudulent crypto exchanges and investment management platforms, highlighting the growing threat of cryptocurrency-related scams.
According to cointelegraph.com
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