Crypto Scam Costs U.S. Victims Over $10 Million

Major Crypto Scam Unveiled

A sophisticated crypto scam has deceived five U.S. victims, resulting in losses exceeding $10 million. The scam revolved around spoofed domains mimicking the former Singapore International Monetary Exchange (Simex).

Scam Mechanics and Execution

The perpetrators set up seven fake domains, falsely presenting them as legitimate platforms for investment. Victims were lured into investing in these phony platforms, only to have their funds redirected into private wallets controlled by the scammers. This fraudulent activity occurred between May and August of this year, as reported by the U.S. Department of Justice (DOJ).

Trust-Building Tactics

Scammers initially contacted victims through dating apps and social media, employing deceptive strategies like sending messages under the guise of a wrong number. By gradually building rapport, they gained the trust of victims before introducing the idea of cryptocurrency investments. Once victims transferred their money, the fraudsters vanished.

Clarifications and Warnings

The Singapore Exchange (SGX) clarified that Simex ceased operations under its name following a merger in 1999. SGX emphasized that it does not operate any investment platforms for cryptocurrency trading. Investors are advised to engage only with licensed brokers for SGX-listed products.

Global Reach of Crypto Frauds

In a related incident, two individuals in Estonia were accused of orchestrating a massive fraud scheme. This separate scam involved a bogus Bitcoin mining company, HashFlare, which falsely promised rental contracts for mining activities, resulting in nearly $575 million in losses for thousands of victims.

These cases highlight the growing sophistication of crypto scams and underscore the importance of due diligence and cautious investment practices.