Fraud Allegations Against Two Crypto Platforms in Washington: Why?
Nasdaqkk.cc and Sequoia-Platform Accused of Defrauding Investors
Two cryptocurrency platforms, Nasdaqkk.cc and Sequoia-Platform, face serious allegations of fraud by Washington State’s Department of Financial Institutions (DFI). These companies are accused of luring investors with promises of high returns but later blocking withdrawals and demanding additional fees. The platforms allegedly exploited social media and messaging apps to target victims, leading to significant financial losses for investors.
Advance Fee Fraud Allegations Against Nasdaqkk.cc
On October 2, 2024, the DFI’s Securities Division addressed fraud allegations against Nasdaqkk.cc. The platform reportedly misrepresented its affiliation with the Nasdaq Stock Exchange, which DFI confirmed is not involved in cryptocurrency trading. An investor was approached via Facebook and subsequently invested $64,000.
When attempting to withdraw funds, the investor received a “safety reserve alert” requiring an additional 15% fee to unfreeze their account. The investor refused to pay the fee and was left unable to access their money. This situation is identified as a common type of cryptocurrency investment scheme known as ‘advance fee fraud.’
Sequoia-Platform’s Manipulative Tactics
Sequoia-Platform is another company accused of defrauding investors. An investor learned of the platform from an online advertisement, and communication was moved to a messaging application such as WhatsApp or Telegram. The investor invested $22,000 in bitcoin and faced multiple fee demands but was unable to withdraw funds.
The platform threatened the investor with a lawsuit, and law enforcement has since seized its domain. The DFI warned consumers to verify the licenses of any investment professionals and urged caution when engaging with unfamiliar entities.
DFI’s Warning and Investor Protection
The DFI’s actions highlight the importance of investor vigilance. It is crucial to verify the credentials of any investment platform and to be wary of high-return promises and unexpected fees. The DFI’s efforts aim to protect consumers from fraudulent schemes and ensure the integrity of the financial markets.
Washington State’s crackdown on these fraudulent cryptocurrency platforms serves as a reminder for investors to conduct thorough research and exercise caution when engaging in online investments.
