The Vermont Department of Financial Regulation (DFR) recently issued a stern warning to its citizens about the growing menace of cryptocurrency investment scams flourishing on popular social media platforms.
The DFR’s advisory comes in the wake of a distressing incident where a 74-year-old man, Naum Lantsman, lost his entire life savings of $340,000 to a crypto scam orchestrated on Instagram and Telegram.
This tragic case underscores the urgency for Vermonters to exercise extreme caution and vigilance when engaging in cryptocurrency transactions.
Instagram has been identified by the Federal Trade Commission (FTC) as the leading platform associated with crypto fraud, and Lantsman’s unfortunate encounter with a scammer took place on this very platform.
He was lured by a post from a fraudulent entity called SpireBit, which purported to be an “international financial broker” specializing in cryptocurrencies.
Without conducting any due diligence, Lantsman created an account on SpireBit, only to be contacted by a representative through Telegram.
Over the course of several days, the scammer coerced him into making substantial investments.
What started as a seemingly harmless $500 investment quickly snowballed into a staggering loss of over $340,000.
Fake platforms like SpireBit deceive users by displaying fabricated profits on every trade, enticing victims to invest even more of their hard-earned savings.
Discover the best crypto projects of 2023
Lantsman, like many others, had heard about crypto scams but never imagined he would fall prey to one.
The DFR points to the increasing complexity and personalization of these scams, with con artists employing layers of deception, forging bank documents, and engaging in friendly conversations to dupe unsuspecting individuals.
The DFR emphasizes the importance of remaining vigilant and conducting thorough background checks when dealing with cryptocurrency investments.
Promptly reporting any fraudulent activities can help mitigate financial damage and assist in apprehending the criminals responsible for these scams.
The issue of decentralized finance hacks is gaining prominence, with Eun Young Choi, director of the U.S. Justice Department’s National Cryptocurrency Enforcement Team, highlighting the significant threat posed by North Korean state-sponsored hackers.
The Justice Department is actively pursuing crypto firms that either engage in criminal activities or turn a blind eye to suspicious transactions designed to obscure the trail of illicit funds.
In conclusion, Vermont’s financial regulatory agency is taking proactive steps to safeguard its citizens against the rising tide of crypto investment frauds on social media platforms.
By raising awareness and urging caution, they aim to empower Vermonters to protect themselves from falling victim to deceptive schemes.
Furthermore, the broader issue of decentralized finance hacks remains a concern, and the Justice Department is actively working to bring those responsible to justice.
Other Stories:
Why You Should Be Bullish Despite Bitcoin Price Falling Below $30,000
Bitcoin Mining Companies Employ Derisking Strategies, Offload BTC to Exchanges
