Trader Claims to Lose $310K on Dodgy Exchange Pitched in LinkedIn Request

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Trader Loses $310K on Dodgy Exchange

YEREVAN (CoinChapter.com) — An investor claims to have lost $310,000 to an allegedly fraudulent crypto trading platform after responding to an unsolicited LinkedIn connection request. This incident was reported by the Washington State Department of Financial Institutions (DFI) Securities Division on June 13.

Initially, the investor discovered the platform, named “Ethfinance,” through a random friend request on LinkedIn. Initially, he transferred a total of $310,000 from his DeFi wallet to Ethfinance, hoping to earn profits from crypto trading.

*Alleged fraudulent exchange EthFinance’s website is currently still online. Source: Eth-Finance*

When the investor tried to withdraw his initial investment and the reported profits, he was told to add more funds to complete the “smart contract” necessary for the withdrawal. The investor did not send any more money and found his account locked, unable to withdraw any funds.

$310K Lost in Ethfinance Crypto Scam

Notably, the Washington DFI suggests that this case appears to be an example of “Advance Fee Fraud.” This scam promises victims significant returns or services in exchange for an upfront payment. Once the payment is made, the scammer either asks for more fees or disappears.

The DFI stated,

“The investor has been unable to withdraw any funds from his account, and his account is locked.”

Previous Complaints Against Ethfinance

Additionally, Ethfinance has been mentioned in previous complaints. According to the Washington DFI’s crypto scam tracker, a California resident reported losing over $165,000 after engaging with the same platform. The individual was approached by a stranger online who offered to teach them how to trade crypto options.

*Washington DFI’s crypto scam tracker results for ETH Finance. Source: Washington DFI*

Moreover, the scam intensified when the “CEO of Crypto Customer Service” on Telegram demanded 25% of the profits as “taxes” before any funds could be withdrawn. The investor realized they had been scammed when asked for this additional payment.

Notably, the Washington DFI issued multiple alerts on June 13, highlighting other allegedly fraudulent crypto platforms and a fraudulent investment management site. The DFI continues to monitor and investigate these scams.

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