The FBI is raising concerns about a cryptocurrency scam that has devastated many Americans, leading to significant financial losses.
Reports indicate that ICHCoin, which claims to offer a crash course in cryptocurrency investing, is an intricate scam responsible for siphoning millions of dollars from victims throughout the United States.
Amanda Culver, assistant special agent in charge at FBI Houston, revealed that the scam has been active since December 2023, resulting in approximately $30 million in losses for unsuspecting individuals, with some victims losing their entire life savings.
Culver highlighted that scammers easily find victims due to the rising interest in cryptocurrency investments, underscoring the critical need for thorough research prior to investing.
The FBI is conducting an investigation into the scam and is encouraging victims to report information regarding ICHCoin or similar fraudulent operations through an online questionnaire.
Understanding the ICHCoin Scam
Culver explained that the scam unfolds in several stages. Initially, scammers reach out to victims on social media channels, presenting an offer to educate them on cryptocurrency investing, with promises of substantial profits.
After gaining the victims’ trust, they are redirected to messaging apps where they interact with a fraudulent professor or instructor to continue the scam. While further details of the scheme were not disclosed, there are warnings from financial authorities about ICHCoin’s deceptive practices.
Victims are often enticed into joining the “Excellence and Innovation Fortune Business School,” a front for the ICHCoin scam, where they are incorporated into groups led by fake experts, who provide bogus trading signals and investment strategies. This is when they are introduced to the ICHCoin app and are pressured to invest. Culver mentioned that scammers frequently instruct victims to mislead banks during fund transfers to these platforms. The app gives false indications of investment returns, but when victims try to withdraw their funds, their accounts are either frozen or they become unresponsive.
Culver emphasized the importance of identifying red flags, especially when receiving unsolicited messages that promise high returns or offer “free money,” as these are significant indicators of potential scams.
FBI Targeting Cryptocurrency Scammers
In recent months, the FBI has intensified its efforts to combat cryptocurrency scams and has ramped up investigative activities. The bureau has issued multiple warnings about crypto threats, particularly in September.
For example, on September 3, the FBI alerted businesses involved in crypto exchange-traded funds about the notorious North Korean hacking group Lazarus and their sophisticated infiltration tactics. In subsequent reports, the agency revealed that over $5.6 billion was lost through cryptocurrency-related frauds and scams, with those aged 60 and older being the most frequent targets.
In early October, the FBI also charged an individual for attempting to extort cryptocurrency assets.
