Cryptocurrency scams have become increasingly prevalent in recent years, taking advantage of the growing popularity and lack of understanding of digital currencies. These scams, often coming in the form of fake crypto exchanges, fraudulent ICOs, or phishing schemes result in significant loss of money for unsuspecting victims in the growing crypto market. And, what comes as the latest crypto news — a significant number of crypto-native citizens in the state of New Jersey have fallen victim to few companies offering fraudulent crypto services.
Crypto Firms Under Scanner
In the midst of massive crackdowns by U.S. agencies, the Bureau of Securities ordered three crypto website operators engaged in cyber scams to cease promoting fraudulent cryptocurrency investments in violation of the New Jersey Securities Law. The Bureau strongly warns residents of New Jersey to be wary of romance and cryptocurrency scams often referred to as “pig butchering.” This is a popular con in which the criminals effectively persuade their victims before defrauding them of all of their money.
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Scams known as “pig butchering” commence when con artists make contact with potential victims, most frequently through social media, with the intention of persuading them to engage in bogus cryptocurrency schemes. In order to earn their victim’s trust, the con artists will frequently begin a “romantic relationship” or a straightforward friendship. This allows them to subtly work their way into earning the victim’s confidence.
While speaking on the nature of the scam, Attorney General Matthew J. Platkin stated that:
These scammers build up a sense of comradery between them and their victim—all to squeeze every cent they possibly can out of these people with promises of huge returns on investments.
Crypto Scams On The Rise
The con artists continue to demand money and demand a variety of fees to withdraw the money as part of their scheme. The fraudsters do not return the victim’s money even after the victim pays the “withdrawal fees.”
According to the findings of the Bureau, the online businesses Meta Capitals Limited, Cresttrademining Limited, and Forex Market Trade, which are all covered by today’s orders, have engaged in fraudulent activity in connection with the offer and sale of securities on their respective websites. The Bureau discovered that all four organizations had violated the New Jersey Securities Law by advertising and selling unregistered securities and that Meta Capitals Limited and Cresttrademining Limited had been operating as unregistered broker-dealers.
According to the latest news coming from the crypto space, pig butchering scams are fast gaining ground in the United States, and it is anticipated to cost victims $429 million in 2021.
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