U.S. officials say it’s a new and sophisticated scam draining millions of dollars from people who drop their guard online. Far from earning $2.8 million, the trader invested $9.6 million into the platform this year before it all vanished, according to court documents.
In a court filing in November, the Secret Service said five U.S. victims reported that they were enticed to invest large sums in cryptocurrency this year by scammers who created seven identical domains spoofing the website of the Singapore International Monetary Exchange. The scammers also created a smartphone app mimicking what traders use on legitimate platforms, officials said.
According to a warrant filed in federal court in the Eastern District of Virginia as part of the websites’ seizure last month, one victim in Richmond lost $289,000. Another, in Los Angeles, was drained of more than $200,000. The trader in Redmond, Wash., who thought she netted $2.8 million in one day in July said her account showed a total profit of about $7 million.
But the “trading profit” displayed on her app was an illusion, according to U.S. officials.
“After numerous…
