California regulator alerts of 17 fraudulent cryptocurrency websites

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DFPI issued several crypto fraud alerts in June when it raised red flags on 26 suspicious crypto sites.

What are these websites?

In two days, California’s Department of Financial Protection and Innovation (DFPI) has issued 17 different warnings to cryptocurrency brokers and websites it believes are fraudulent. Among the companies on the list are Tahoe Digital Exchange, Teletrade Options, Tony Allyn Trading Company, Hegament/Total Markets Limited, Trade 1960, Yong Ying Global Investment Company Limited, Unison FX,, ZTC Exchange, to name a few. .

Additionally, and UniSwap LLC are two fake websites impersonating two well-known names in the cryptocurrency industry. As this article was written, DFPI’s 17 alerts were placed on the Consumer Alert website throughout December 27 and 28, alleging that these businesses were engaging in fraud against California consumers.

What is the reason for the increase in these scams?

DFPI (1) rarely posts multiple notifications at the same time, indicating that the number of complaints of cryptocurrency scams may have increased in the last months of the year. From time to time, DFPI will broadcast announcements regarding company investigations or alerts about specific events. On June 15, DFPI issued several crypto fraud alerts when it raised the red flag on 26 suspicious crypto sites.

The DFPI said the warning was issued in response to public concerns against brokers and websites. In some cases, they have reported losing anywhere from $2,000 to $1.2 million (2) However, the DFPI says these websites “appear to be involved in fraud”. Most of these warnings say that pig-killing scams, where a person or group creates a false online persona to create relationships or friendships on social media, messaging services and dating apps, are common.

How Fraud Works

In a romance or hog-killing scam, the con artist often spends several weeks or months raising a fictitious family, winning the victim’s trust, before gradually shifting investments. In this case the ultimate aim is to get the victim to send money to a shady wallet address or invest in cryptocurrency through a fake website such as UniSwap LLC and a genuine website like

Alleged con artists are also accused of using a technique known as an “advance payment scheme” in which they demand substantial sums of money from their fraudulent websites in order to withdraw fictitious money. If the target falls, the con artist immediately cuts off all communications with the initial charge and bonus slice. DFPI advises clients to proceed with extreme caution before responding to any solicitation offering financial or investment services. To determine whether a source of financial services or investments.


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