Online scams are on the rise and the crypto industry is in regulators’ crosshairs. The last thing an exchange wants is for bad actors to misuse its name to steal money.
But that is exactly what happened in one of the biggest scams, in terms of losses, this year. A Connecticut resident lost more than $3 million to fraudsters claiming affiliation with Kraken.
Scam Robs Victim Through ‘Kraken’ Misappelation
According to a report by NBC News’ Connecticut affiliate, an unnamed resident of Westport followed advice to transfer funds out of a retirement account. And to re-invest the money in an account supposedly affiliated with Kraken.
The victim told police that more than $3 million promptly went into crypto wallets that the victim could not access.
Working in collusion with the state’s Organized Crime Task Force, local detectives traced the transactions and froze accounts that played a role in the ripoff.
Their investigation led to culprits residing in Pakistan. Police got back $3.2 million, but said there was no way to make any arrests in the case.
Learn more about online crypto scams, how they operate, and how to protect your assets from them.
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Author: Michael Washburn
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