Washington state DFI warns Eucoinotrade may be engaging in ‘advanced fee fraud’

The Washington State Department of Financial Institutions (DFI) has issued a user extortion alert addressing the “alleged cryptocurrency exchange” known arsenic Eucoinotrade. 

At slightest 1 idiosyncratic whitethorn person fallen unfortunate to what appears to beryllium “advanced interest fraud,” per the report. This is simply a assurance strategy that involves soliciting ample sum payments for fees nether the guise they’re needed to merchandise expected earnings.

According to the DFI, “after investing 5 oregon 6 times, for a full of astir $50,000, the investor’s Eucoinotrade relationship purportedly grew to implicit $414,000.” However, the problems allegedly began erstwhile the capitalist attempted to currency out.

Initially, ‘customer service’ claimed the investor’s gains required them to upgrade their relationship to “elite status” and demanded the capitalist wage “software upgrade” fees successful the magnitude of $40,000.

‘Customer service’ past agreed to waive the $40,000 fee, but insisted the capitalist would inactive request to wage a $14,000 processing interest to entree their money. Once that interest was obtained, the capitalist was past solicited for different $9,400 interest called an “IRS compulsory fee” — thing the Washington DFI says doesn’t exist.

A screenshot of a pop-up alert visitors person upon navigating to the Eucoinotrade website.

The alert goes connected to authorities that, per the organization’s research, the Eucoinotrade website throws up respective imaginable reddish flags: it claims to beryllium registered successful Ireland, but the alleged exchange’s concern ID appears to notation to a antithetic institution altogether; the website’s FAQ states that it inactive accepts Payza, a work that was unopen down successful 2018 up of its founders pleading blameworthy to conspiring to launder wealth and operating an internet-based unlicensed wealth work business; the website appears to beryllium built with a template shared by hundreds of different questionable sites.

Related: $4M ‘exit scam’ suspected arsenic Kokomo Finance flies disconnected radar, token plunges

The Ecoinotrade tract claims to connection 150% regular nett connected idiosyncratic accounts with concern minimums ranging from $1,000 to $150,000 utilizing a “binary algorithm.” However, nary probe oregon institution illustration accusation appeared connected the website.

Cointelegraph asked Ecoinotrade astir the alert but did not person an contiguous response. This communicative volition beryllium updated should they respond.