Washington’s financial regulator warns of a crypto scam where fraudsters posing as business “professors” threaten legal action to trick victims into fake schemes.
According to a statement by the Washington State Department of Financial Institutions (DFI) on July 16, the scammers claim to be part of an “Academy,” “Business School,” or “Wealth Institute.” They lure victims with promises of high returns from their courses.
The scam usually starts with a Facebook ad for an investment opportunity. When victims click the link, they see a “Letter from the Professor” or “Letter from the Dean” on the website. They are then added to a WhatsApp or Telegram chat with names like “daily trading signals,” where the “professors” promise lucrative returns.
The fake academy offers high-dollar loans or lines of credit to meet capital requirements for a supposed new investment opportunity. Victims are asked to provide personal details, such as their credit score or license, and sign a loan document, making the offer seem legitimate.
In some cases, even if the victim declines the offer, the professor’s “assistant” borrows the funds in cryptocurrency on behalf of the investor and deposits them into their account. They often attach a fake screenshot to make it look real, but blockchain explorer sites show no transaction was made.
Initially, victims are told that the loan can be paid off with the profits they earn. However, the company freezes their accounts and threatens them with legal action until they repay the loan from their own pocket. The DFI reports that no victim has successfully withdrawn their funds by paying back the loan.
In a similar case, the DFI received complaints about the “Excellence and Innovation Fortune Business School,” which lured victims into the ICHCOIN cryptocurrency scam.
Victims were asked to provide personal details and sign a loan document. One victim was convinced to invest $300,000 after being sent 500 Tether to “test” the platform. However, the promised 450,000 USDT deposit never appeared on the blockchain.
The DFI urges the public to be cautious and report any suspicious activity related to such scams.
Also Read: Tether Blacklists Wallet Linked to Lazarus Group Scam
