California Regulator Warns of 17 Crypto Brokerage Firms Suspected of Fraud

With the number of cryptocurrency scams on the rise, authorities worldwide are fighting to protect users from falling prey to scammers. On this note, California’s Department of Financial Protection and Innovation (DEPI) has ringed a bell against 17 brokerage websites that may be engaging in fraud and scams. 

Firms Posing as Uniswap and Wintermute

According to the DEPI’s consumer alert page, the market watchdog received complaints from investors who had fallen prey to the scams before publishing the list. 

Some of the crypto firms which made a list include Tahoe Digital Exchange, TeleTrade Options, Tony Alin Trading Firm, Hekamenltd/Tosal Markets Limited, Trade 1960, Yong Ying Global Investment Company Limited, Unison FX, VoyanX.com, and ZC Exchange. 

Two of the 17 companies are impersonating well-known brands in the industry to scam unsuspicious investors. The copycats posing as decentralized exchange (DEX) Uniswap and centralized market maker Wintermute were listed as eth-Wintermute.net and UniSwap LLC, respectively. The operators behind the websites hide under the fake names to carry out their fraudulent activities. 

It took the regulator 48 hours to compile the lists stating that the platforms mentioned earlier “appear to be engaging in fraud against California consumers.”

Not the first

It is important to note that this is not the first time the California regulator has issued scam alerts to warn investors against suspicious firms parading as legit organizations. 

Usually, the regulator would publish one or two companies or individuals stating that such cooperation may be engaging in fraud against the regional investors. 

The latest report represents the second largest batch of crypto scams to be released this year, showing that the number of scams has drastically increased towards the end of the year. In June, the DEPI fired a red notice against 26 potential fake companies that had drained thousands to millions of dollars from investors.

According to the report, the warning came from complaints the local market watchdog received from crypto users in the area claiming the firms had exploited them. 

The warnings stated that the investors lost between $2000 and $1.5 million. 

While the previous publication surpassed the new one published on December 27 and 28, the DEPI said it is dedicated to protecting users against scams and fraud.