ChainCatcher reported that the Washington State Department of Financial Institutions (DFI) issued a consumer alert reporting multiple cryptocurrency scams involving fake "professors" on Whatsapp and Telegram. The scam involves "companies claiming to be higher education institutions, such as 'business schools', 'colleges' or 'wealth academies', offering courses centered primarily on investing in cryptocurrencies.
The alleged fraud often begins with investors being placed into Whatsapp or Telegram groups, often with arbitrary names that include buzzwords like “Wealth Club,” “Elite” and “Artificial Intelligence.” The groups are run by purported associates at the firm, with titles including professor, consultant and assistant.
In addition, these companies also offer high-value loans or lines of credit to help investors join exclusive “VIP clubs” or meet capital requirements for new products. These loans are often arranged informally through WhatsApp, with the company providing misleading account screenshots. When investors attempt to repay these loans, they are told that their accounts will be frozen until external funds are provided, and if they do not comply, they receive threatening messages and claims for legal action.
