On December 27 and 28, the California Department of Financial Protection and Innovation (DFPI) Free A comprehensive list of over 17 crypto sites suspected of defrauding users on their homepages.
The sites mentioned include Tony Ellin Trading Firm, Tahoe Digital Exchange, Teletrade Options, ZC Exchange, Sun Bit ProA, Singapore, Reliable Option Trade, Hekameltd/Total Markets Ltd, Trade1960, Voynex.com and others. there are two names in the list copycat websites (eth-Wintermute.net and UniSwap LLC), is bent on deceiving unsuspecting victims, posing as established protocols on crypto and DeFi.
In this alert, the DFPI primarily warns of pig-butchering scams, where fraudsters aim to build trust before offering “investment opportunities” on copycat websites such as UniSwap LLC and eth-Wintermute.net, whose offers are often too good to be true. There are truths.
People who are trying to recover their lost funds have also fallen prey to fraudsters who pose as “fund recovery agents” charging a fee for their “services”.
It is common for the DFPI to issue simultaneous warnings and a bunch of data from companies they consider to be fraudulent. Given their activity in the second half of 2022, this may indicate that scammers and fraudsters have moved their plans to the fourth quarter of 2022.
DFPI’s efforts against suspicious crypto entities
Due to the circumstances surrounding the collapse of BlockFi and Voyager, the DFPI issued a July 2022 consumer alert Manifest your intentions to investigate a number of crypto lending firms offering different shades of services that may interest their customers.
In September 2022, they were also joined by other state regulators cracking down Cryptocurrency firms that flouted security laws resulted in the prosecution of 11 decentralized finance accused of running an investment scam.
In December 2022, DFPI issued a stop order against MyConstant, a crypto lending platform, forcing it to halt all marketing of its crypto-related products.
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