Wealth BAX Finance
A resident of California recently shared their experience with a stranger named “Sandy” who reached out via text message. Following some exchanges, Sandy suggested they communicate through WhatsApp, where their interactions evolved into a more personal relationship. During their chats, Sandy introduced the victim to a crypto trading platform called Wealth Bax, urging the victim to create an account and transfer funds to the site “h5.wealthbax.com/x/”. The victim was asked to provide personal details, including a photo of their driver’s license, to set up the account. After depositing crypto assets, the victim engaged in trading activities and was led to believe that their investment had appreciated to $281,992. However, when the victim attempted to withdraw funds, the site demanded payment of over $40,000 in taxes to the IRS. Sandy advised the victim to pay, claiming she had also done so to access her funds. Ultimately, the victim was unable to withdraw any money, and the website has since ceased operations.
Fraudulent Trading Platform
In a separate incident, a California resident reported joining a Telegram group that promised education in crypto trading. The group leader, Mason, allegedly worked for a reputable financial firm. Following the group’s guidance, the victim deposited funds into a platform known as tpkcoin, participating in a trading program that involved receiving signals over several days. However, when the trading period ended, the victim was informed that they owed $29,000 in commissions. Attempts to withdraw funds were met with demands for payment of an additional $48,000 in taxes. When the victim expressed financial constraints, an assistant suggested using a cold wallet to process smaller withdrawals. However, after seeking further advice, the victim was blocked from accessing their account, and the platform has since become inoperable. Overall, the victim lost $4,200 in the process.
Pig Butchering Scam
Another California resident reported falling for an online investment group led by a so-called professor, Robert, who claimed participants earned substantial returns on their investments. Robert directed the victim to a trading platform called SILD, where they began trading after depositing funds. When Robert created a more exclusive trading group requiring investments of $50,000 to $3 million, the victim was initially excluded for insufficient funds. However, Robert’s assistant, Angelina, later contacted the victim to inform them that their investment had tripled, urging them to join the new group for $100,000. The victim attempted to liquidate a CD for the necessary funds, but the bank refused the transfer due to suspicions about the platform. Ultimately, the victim lost over $85,000 without any recovery.
Imposter Scam
A California resident recounted being approached on Instagram by someone who presented themselves as a successful investor. This individual assisted the victim in purchasing crypto assets and opening an account on the platform bitaeqcke.net. The victim was misled into thinking they were accumulating wealth, but when they sought to withdraw funds, they were faced with a demand for over $30,000 in “tax profit” fees. After failing to pay, all communication from the supposed investor ceased, and the victim has not been able to recover their funds.
Crypto Giveaway/Airdrop Scam
In another case, a Californian fell victim to a scam promising a giveaway of $100 million in crypto assets, purportedly orchestrated by “Elon Musk” through a YouTube livestream. Participants were instructed to send crypto assets to a specified wallet to join the giveaway. The victim transferred $5,000 but was unable to recover any funds once it was revealed that the website was a scam.
Fraudulent Trading Platform
A California resident reported being contacted by “Sharon,” who posed as a stock broker. After convincing the victim to invest Bitcoin on the platform capiturly.io, the resident lost access to their funds and could not retrieve them when the site shut down.
Pig Butchering Scam
Another victim encountered “Ashley” on Instagram, who claimed to be a seasoned crypto investor associated with Ceypro investments. Following Ashley’s instructions, the victim invested substantial sums only to be told that additional funds were required to facilitate withdrawals, ultimately leading to losses exceeding $100,000.
Imposter Scam
Two California residents reported scams from the fraudulent entity SAXO Group, which impersonated the legitimate investment bank Saxo Bank. Victim accounts involved significant losses due to demands for upfront fees and taxes before withdrawals could be processed. One victim lost nearly $1.6 million before realizing the fraud.
Pig Butchering Scam
In another instance, a Californian who engaged with the platform CFX Lifestyle was promised returns after a minimal deposit. However, before receiving any payouts, the victim faced claims of IRS issues and ultimately lost their entire investment of $5,000.
Fraudulent Trading Platform
A California resident reported joining a group claiming to offer lucrative trading opportunities through the platform YFI App. After investing over $61,000, the victim was unable to access their funds as the website ceased operations.
Pig Butchering Scam
Victims also reported scams involving the platforms bybukx.com and 0xlayer.top, where attempts to withdraw funds were thwarted by requests for additional deposits and fees, resulting in significant financial losses.
Fraudulent Trading Platform
Numerous Californians reported scams involving various crypto trading platforms that operated under misleading identities, including impersonations of legitimate companies and promises of high returns. Victims often faced demands for taxes and fees before being allowed to access their funds.
Pig Butchering Scam
The scale of these scams highlights a growing trend in fraudulent crypto investments, with scammers often leveraging personal relationships and promises of high returns to exploit victims financially.
Warning to Investors
The Department of Financial Protection and Innovation (DFPI) warns consumers to exercise extreme caution when investing in cryptocurrency, particularly when approached through social media or messaging platforms. The prevalence of scams underscores the importance of verifying the legitimacy of investment opportunities and being cautious of unsolicited offers promising high returns.
