CFTC Claims 2.3M Dollars in Losses in Alleged Romance Scam Linked to Debiex Crypto Exchange

Crypto News- Cryptocurrency exchange Debiex finds itself in hot water as U.S. regulators claim that high-ranking staff members orchestrated deceptive romantic relationships with potential customers in a bid to defraud them of their funds.

CFTC Claims 2.3M Dollars in Losses in Alleged Romance Scam Linked to Debiex Crypto Exchange

In a statement released on January 19, the U.S. Commodity Futures Trading Commission (CFTC) detailed how Debiex staff allegedly utilized misleading tactics to build trust with potential customers, ultimately persuading them to open accounts with the crypto exchange.

Assuring customers that their funds would be invested in cryptocurrencies, Debiex, according to the CFTC, allegedly diverted these funds for personal gain:

“The CFTC’s complaint alleges Debiex’s unidentified officers and/or managers cultivated friendly or romantic relationships with potential customers by communicating falsehoods to gain trust, and then solicited them to open and fund trading accounts with Debiex.”

Despite only identifying five victims over a two-year period, the regulator claims that the pig butchering scheme led to the theft of over $2 million.

“From approximately March 2022 through the present, it’s alleged Debiex accepted and misappropriated approximately $2.3 million from approximately five customers as part of this scheme,” the statement notes.

As Valentine’s Day approaches, individuals are warned to exercise caution. The regulator advises people to be wary of connecting crypto wallets or signing up for crypto services through romantic connections.

Debiex Faces 2.3M Dollars Romance Scam Allegations by CFTC

In February 2022, the FBI issued a warning about the increasing number of romance scammers during the week of Valentine’s Day, attempting to persuade individuals to invest in crypto.

Romance scammers have been capitalizing on the popularity of crypto to deceive and exploit victims for financial gain. In May 2023, crypto exchange Binance faced allegations when a Texas woman claimed the exchange should compensate her for an $8 million fraud initiated through Tinder. However, a U.S. judge ruled that there was no evidence of Binance’s participation in the theft.

Recent developments in the tactics of romance scammers involve a quicker strategy, moving away from the traditional method of building trust through dating app interactions. In December 2023, Cointelegraph reported on an emerging tactic known as targeted approval phishing. This technique convinces victims to sign a transaction, granting scammers access to wallets and enabling them to swiftly drain funds.