Home CryptocurrencyBitcoin Debiex Cryptocurrency Exchange Faces Romance Scam Allegations, CFTC Claims $2.3 Million in Losses

Debiex Cryptocurrency Exchange Faces Romance Scam Allegations, CFTC Claims $2.3 Million in Losses

by SuperiorInvest

Cryptocurrency exchange Debiex is under scrutiny as US regulators allege top officials orchestrated romantic relationships with potential clients in an effort to defraud their funds.

In a recent statement on January 19, the US Commodity Futures Trading Commission (CFTC) highlighted that Debiex staff allegedly misled potential clients to gain their trust before convincing them to open accounts on the crypto exchange.

Debiex assured clients that their funds would be invested in cryptocurrencies; However, they allegedly misappropriated the funds for personal benefit:

“The CFTC complaint alleges that unnamed officers and/or managers of Debiex cultivated friendly or romantic relationships with potential clients by communicating falsehoods to gain trust, and then solicited them to open and fund trading accounts with Debiex.”

Despite only five victims being identified over the two-year period, the regulator claims more than $2 million was stolen through the pig slaughter scheme.

“From approximately March 2022 to the present, Debiex is alleged to have accepted and misappropriated approximately $2.3 million from approximately five clients as part of this scheme,” the statement said.

With Valentine’s Day just weeks away, people are urged to be careful as February 14 approaches. Be careful when connecting crypto wallets or signing up for crypto services through romantic connections.

In February 2022, Cointelegraph reported that the FBI had warned citizens during the week of Valentine’s Day to be on the lookout for the growing number of romance scammers trying to persuade people to send money to invest in cryptocurrencies.

Related: Former IcomTech CEO sentenced to five years in prison for wire fraud

In recent times, romance scammers have been taking advantage of the popularity of cryptocurrencies to trick and exploit victims for financial gain.

In May 2023, cryptocurrency exchange Binance came under fire when a Texas woman alleged that the exchange was responsible for compensating a man who scammed her out of $8 million. This relationship started on Tinder.

She argued that Binance was involved because it provided exchange services to the scammer.

However, US Judge Amos Mazzant ruled that there was no evidence that Binance was involved in the theft.

More recently, however, romance scammers are adopting a faster strategy for depleting funds, moving away from the traditional method of building trust through extensive interactions on dating apps.

In December 2023, Cointelegraph reported that an emerging tactic among romance scammers is targeted approval phishing. This involves convincing the victim to sign a transaction, granting the scammers access to the wallets, and allowing them to drain the funds quickly.

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