SEC charges crypto scammers using social media
The U.S. Securities and Exchange Commission (SEC) has filed charges against two cryptocurrency scams, Nanobit and Coinw6, which allegedly used social media platforms such as WhatsApp, LinkedIn, and Instagram to defraud investors.
These actions mark the SEC's first enforcement steps against such scams, reflecting a more aggressive stance in combating fraudulent crypto schemes.
The SEC's complaint accuses various entities and individuals of creating fake cryptocurrency investment platforms and establishing false relationships with victims to misappropriate their funds.
Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, commented, “Relationship investment scams, including those involving crypto asset investments, pose a risk of catastrophic harm to retail investors, and the threat is increasing rapidly as these scams become more popular with fraudsters.”
The first case involves the Nanobit scheme, which operated from October 2023 to June 2024.
Fraudsters posed as financial professionals on WhatsApp, convincing investors to participate in a fake crypto trading platform, leading to over $2 million in losses.
Grewal stated, "In these two cases, we allege that fraudsters created fake crypto ecosystems that displayed false information to investors."
The second case concerns the Coinw6 scam, active from July 2022 to December 2023.
Here, scammers used social media to form romantic relationships with victims, ultimately persuading them to invest in fraudulent cryptocurrency products.
When investors tried to withdraw their profits, the scammers allegedly demanded additional payments for taxes or fees, claimed the assets were frozen due to a law enforcement inquiry, or resorted to blackmail using compromising romantic communications on WhatsApp.
The SEC is seeking civil penalties and permanent injunctions against the individuals involved in both schemes.
Grewal emphasised the importance of caution, stating, “Our allegations serve as a reminder to the public to be on heightened alert about potential scams involving investment opportunities promoted by strangers on social media.”
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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