State Police Remind Residents to Beware of Cryptocurrency Scams
September 2 – Connecticut State Police remind residents to beware of scams involving cryptocurrency.
The warning dates back to June of this year when the Connecticut State Police’s Mansfield Resident Soldier’s Office received a complaint about a possible cryptocurrency scam. The victim deposited $10,000 into a Bitcoin ATM after being tricked into believing his bank account had been hacked.
Detectives from the statewide Organized Crime Investigative Task Force were able to trace the flow of funds through a series of Bitcoin accounts that the scammer attempted to use to launder the stolen Bitcoin.
Ultimately, the victim’s Bitcoin was held in an account controlled by the suspect at a major cryptocurrency exchange located in the Cayman Islands.
With the cooperation of the cryptocurrency exchange, detectives were able to repatriate the funds to a government-controlled Bitcoin account, where they are being held pending legal proceedings for restitution to the victim.
The suspect currently resides in India and no arrests are expected at this time.
Connecticut State Police say scams involving cryptocurrency are on the rise and becoming more sophisticated.
According to the Connecticut State Police, the most common cryptocurrency scams often start with a weird text message, email, or phone call. Scammers often lure victims to cryptocurrency ATMs or online investment sites or exchanges where it is relatively easy to convert US dollars into cryptocurrencies like Bitcoin, Ethereum, and Solana.
Connecticut State Police say that in a cryptocurrency scam, a victim is often tricked into believing that their bank account or investments are under attack. The victim is then asked to convert these assets into cryptocurrency and send them to a secure account controlled by the scammer.
Scammers may also tempt victims with a get-rich-quick scheme, tricking them into investing in a new cryptocurrency coin, which is ultimately a bogus investment.
The Connecticut State Police have offered red flags to look for to determine cryptocurrency scams. One of them is that no legitimate bank, company or government agency will order a person to withdraw money from their bank account.
Another red flag is if a third party sends a
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