Warning About New Crypto Scam in North Dakota
Date: 2025-03-14 Author: Oliver Abernathy Categories: IN WORLD
Defense Commissioner Tim Karski said the scammers are actively recruiting victims through social media ads. Users are added to WhatsApp groups run by bots, where they are offered educational materials on investing. However, participants are eventually persuaded to register with fraudulent crypto exchanges and dubious financial platforms.
Victims are led to believe that investing in these platforms will guarantee high returns. Some are convinced to take out loans with inflated fees, promising a quick return on their funds. However, when they try to withdraw their money, users are faced with account freezes. In addition, investors are offered to test a bot with artificial intelligence, issuing “free” tokens that are supposedly capable of generating income. This trick pushes people to make real financial investments.
To create the appearance of legitimacy, scammers post fake US Treasury Department and SEC registration documents on their websites. They may also publish educational materials to appear to be professional financial advisors or use domains that previously belonged to legitimate organizations.
In this regard, the North Dakota Department of Securities recommends that investors be wary of financial offers received via social media, emails, and phone calls. Before investing funds or taking out a loan, it is necessary to check the legality of platforms offering investment services.
North Dakota authorities have previously taken action against violations in the crypto industry. Last year, BAM Trading Services, which operates Binance.US, lost its license. According to the North Dakota Department of Financial Institutions, Binance.US no longer meets the requirements for working with digital and fiat assets.
