Regulator Warns Against Surging Crypto 'Investment Education' Scams
by aria-crypto.com
March 16, 2025 at 00:34
Regulator Warns Against Surging Crypto 'Investment Education' Scams
Fake 'investment education' scams in the cryptocurrency sector are on the rise, as highlighted by the North Dakota Securities Department. These fraudulent foundations lure investors with the promise of teaching them about cryptocurrency investments while concealing their true scamming nature. The schemes utilize deceptive practices such as offering "risk-free" trials and access to bogus loans, coaxing victims to invest their money and pay hefty commissions. Tim Karsky, the North Dakota Securities Commissioner, emphasized the concern over these scams, which exploit the investors' desire for safe cryptocurrency investments. The deception often begins with social media ads that lead potential investors to WhatsApp groups managed by automated bots. These groups promise profitable investment lessons and introduce victims to fake cryptocurrency exchanges. Initially, victims receive 'free' tokens to use on an AI trading bot, creating an illusion of quick profits. Encouraged by this perceived success, victims deposit real money, and if they lack funds, are directed to fraudulent loan services. Victims are then unable to withdraw funds, facing demands to repay loans and extra commissions, before the scam culminates with the freezing of accounts due to supposed regulatory issues. Scammers boost their credibility using real government documents and falsely claiming registration with prominent authorities like the U.S. SEC. Karsky urged potential investors to thoroughly verify the legitimacy of any educational foundation before engagement, particularly if discovered through social media.
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