US state agency issues alert on crypto fraud happening over social media

Friday, 21 Jul 2023

Cointelegraph By Arijit Sarkar

Original Article

Vermont issued the investor alert after a 74-year-old man lost his life savings of over $340,000 in a crypto fraud orchestrated over Instagram and Telegram.


Join us on social networks

The Vermont Department of Financial Regulation (DFR) — the United States state of Vermont’s financial regulatory agency — warned citizens against rising crypto investment frauds perpetrated over popular social media sites.

On June 25, 74-year-old Naum Lantsman lost his life savings of $340,000 to a crypto scam orchestrated over Instagram and Telegram. The DFR referenced the incident as it emphasized “the need for Vermonters to exercise extreme caution and vigilance when using or investing in cryptocurrency.”

A snippet of Vermont’s investor alert against crypto scams. Source:

Instagram has been rated as the top platform connected to crypto fraud by the Federal Trade Commission (FTC), which is also true for Lantsman. His initial contact with the crypto scammer happened over Instagram, wherein he came across a post from SpireBit claiming to be an “international financial broker” dealing in cryptocurrencies.

Without any form of investigation or research about the platform, Lantsman created an account on SpireBit. A Spirebit representative contacted Lantsman over Telegram and, over several days, coerced him into making investments.

What started as a $500 investment ultimately resulted in a more than $340,000 loss. Once a user invests on fake platforms like SpireBit, the dashboard shows profits on every trade, which encourages investors to shell out more of their savings.

Lantsman had heard about crypto scams in the past but never expected himself to become a victim of the crime. Vermont DFR blames the rising crypto scams on the con artists that devise “more complex, personalized tactics” with layers of deception.

From forging bank documents and statements to having friendly conversations, scammers’ ever-evolving techniques can be tackled through vigilance and background checks.

Vermonters have been asked to report fraud in a timely manner to help reduce financial damage and track down criminals.

Related: Five US enforcement agencies form new digital currency anti-crime task force

Eun Young Choi, director of the U.S. Justice Department’s National Cryptocurrency Enforcement Team, said that decentralized finance hacks were a “pretty significant issue,” given the rise of North Korean “state-sponsored hackers.”

Justice Department Announces First Director of National Cryptocurrency Enforcement Team

— Justice Department (@TheJusticeDept)

February 17, 2022

Choi also reaffirmed that the Justice Department is after crypto firms that either commit the crime or turn a blind eye to “obscure the trail of transactions.”

Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.

Magazine: US enforcement agencies are turning up the heat on crypto-related crime


Cointelegraph By Arijit Sarkar

You May Also Like…

Open chat
BlockFo Chat
Hello 👋, How can we help you?
You can choose between Telegram or WhatsApp 👍
📱 When you've made your choice, we automatically transfer to the right app 🔝🔐
🖥️ Or, if you use a PC or Mac, then we'll open a new window to load your desktop app.