Washington State Department of Financial Institutions: Beware of cryptocurrency scams involving fake "professors" on Whatsapp and Telegram

ChainCatcher message, the Washington State Department of Financial Institutions (DFI) issued a consumer alert reporting multiple cases of 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 primarily centered around investing in cryptocurrencies.

The alleged fraudulent activities typically begin with investors being placed into Whatsapp or Telegram groups, often using arbitrary names including popular terms like "Wealth Club", "Elite", and "Artificial Intelligence". These groups are operated by colleagues purportedly from the company, holding titles such as professors, advisors, and assistants.

Furthermore, these companies also offer high-value loans or credit lines to help investors join exclusive "VIP clubs" or meet capital requirements for new products. These loans are usually arranged informally through WhatsApp, with the company providing misleading account screenshots. When investors attempt to repay these loans, they are told their accounts will be frozen until external funds are provided; failure to comply results in receiving threatening messages and legal claims for lawsuits.