The California Department of Financial Protection and Innovation (DFPI) has received a complaint from a California resident regarding cryptocurrency fraud.
A California resident told DFPI he met a woman on WhatsApp who asked him to invest on the trading platform https://www.jsgj121.com saying that he would double his money. The scammer described an elaborate scheme called “lossless mining,” defi mining, and on-chain node mining methods following Bitcoin and Ethereum. The scammer said that the user joins the community to become a virtual miner, which required a miner fee to activate the on-chain node docking mining interface used to mine Ethereum for a 24-hour cycle, and that evey day at 12 noon Washington time, any earnings would be deposited in the user’s wallet. The victim was told there was no risk of transfer out, and that this program could create millions of income every year. The victim sent $8,000. But when he tried to withdraw his profits, he was told he needed to pay income taxes. He then reported the page to FTC and said the platform disappeared, but the women is still online looking for more victims to invest. These allegations have not been verified by DFPI.
This appears to be what is commonly called an “Advance Fee scheme,” which can take many forms, as discussed here: https://www.fbi.gov/scams-and-safety/common-scams-and-crimes/advance-fee-schemes.
In…
