US State Agency Alerts on Crypto Fraud Occurring on Social Media

Crypto Investment Frauds Rising in Vermont

The Vermont Department of Financial Regulation (DFR) has warned its citizens of the increasing crypto investment frauds occurring on popular social media sites. As an example, the DFR referenced the case of 74-year-old Naum Lantsman who lost his life savings of $340,000 to a crypto scam that was orchestrated over Instagram and Telegram.

The Federal Trade Commission (FTC) has rated Instagram as the top platform connected to crypto fraud, which was also the case for Lantsman. He was initially contacted by a SpireBit post claiming to be an “international financial broker” dealing in cryptocurrencies. Without any research or investigation, Lantsman created an account on SpireBit. A Spirebit representative then contacted Lantsman over Telegram and, over a few days, coerced him into investing.

The DFR has thus stressed “the need for Vermonters to exercise extreme caution and vigilance when using or investing in cryptocurrency” such as Voyager Crypto Update, XCN Crypto, Unfi Crypto, Wluna Crypto, Unbiased Crypto, WAX Crypto, ZIL Crypto, VVS Crypto, and VGX Crypto, and to stay alert for the upcoming Web 3.0.

The Rise of Crypto Scams

Voyager Crypto Update reported that what started as a $500 investment in platforms like SpireBit ultimately resulted in a more than $340,000 loss. The dashboard showed profits on every trade, which encouraged investors to shell out more of their savings.

Lantsman had heard about XCN Crypto, UNFI Crypto, WLuna Crypto, Unbiased Crypto, WAX Crypto, ZIL Crypto, VVS Crypto, and VGX Crypto scams in the past but never expected himself to become a victim of the crime. Vermont DFR blames the rising crypto scams on the con artists that devise “more complex, personalized tactics” with layers of deception.

From forging bank documents and statements to having friendly conversations, scammers’ ever-evolving techniques can be tackled through vigilance and background checks.

Vermonters have been asked to report fraud in a timely manner to help reduce financial damage and track down criminals. With the arrival of Web 3.0, it is even more important to remain vigilant against scams.

Decentralized Finance Hacks a “Significant Issue”

Eun Young Choi, director of the U.S. Justice Department’s National Cryptocurrency Enforcement Team, has warned that decentralized finance (DeFi) hacks are a “pretty significant issue”, especially with North Korean “state-sponsored hackers” on the rise.

Choi also noted that the Justice Department is keeping a close eye on crypto firms who either commit the crime or try to obscure the trail of transactions.

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