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$SOL SEC sues ‘fake’ crypto exchanges in first action on pig butchering scams
The SEC has taken action against romance scammers for the first time, charging two allegedly fake crypto exchanges with carrying out fraud.
The United States Securities and Exchange Commission says it has taken its first-ever action against crypto “pig butchering” scammers, charging two allegedly “fake crypto asset trading platforms.”
The SEC sued five entities and three people it said were connected to the alleged fake exchanges NanoBit and CoinW6, accusing them of stealing nearly $3.2 million after gaining investors’ trust and pursuing relationships with them via social media, according to a Sept. 17 statement.
“These charges are the SEC’s first enforcement actions alleging these types of scams,” the SEC added.
“In these two cases, we allege that fraudsters created fake crypto ecosystems that displayed false information to investors,” said the SEC’s Division of Enforcement director Gurbir Grewal.
Today we charged multiple entities and individuals in connection with two relationship investment scams involving fake crypto asset trading platforms NanoBit and CoinW6, respectively.
Grewal added the threat of such relationship investment scams “is increasing rapidly as these scams become more popular with fraudsters,” with the cases a reminder “to be on heightened alert” about investments promoted by strangers online.
Scammers pretended to be “attractive” pros, claims SEC
The SEC sued CoinW6 on Sept. 17 in a California federal court, alleging it perpetrated a scheme with “a web of individuals” passing as “young, attractive professionals” who defrauded at least 11 investors out of over $2.2 million.
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