🌎 FBI Warns of ICHCoin Scam Draining Life Savings of Americans

The FBI is raising awareness about a cryptocurrency scam that has cost some Americans their entire life savings. The bureau alleges that ICHCoin, which enticed individuals with promises of a crash course on cryptocurrency investing, is a sophisticated scam siphoning millions of dollars from people across the United States.

Details of the ICHCoin Scam

According to Amanda Culver, the FBI Houston’s assistant special agent in charge, the perpetrators behind this scam have been active since December 2023, stealing approximately $30 million through the ICHCoin app. Some victims have reportedly lost their entire life savings.

Culver emphasized the ease with which scammers find victims, noting that “people are very interested in investing in cryptocurrency.” She stressed the importance of conducting thorough research before making any investments.

The FBI is actively investigating this scam and has urged victims to provide information regarding ICHCoin or similar scams through their online questionnaire.

How the ICHCoin Scam Operates

The scam unfolds in several stages. Initially, scammers approach victims on social media platforms like Facebook and Instagram, offering to educate them on cryptocurrency investing and promising lucrative profits.

Once the victims are convinced, they are redirected to messaging platforms like WhatsApp, where a fake professor or teacher continues the scam. The Washington State Department of Financial Institutions had previously flagged ICHCoin in one of its warnings in July, indicating that victims were lured into the “Excellence and Innovation Fortune Business School,” a front for the ICHCoin scam.

Victims are then added to groups controlled by these fake academics, who provide daily trading signals and investment tips promising massive returns. Here, they are introduced to a fake crypto trading platform, the ICHCoin app, and urged to make investments.

Culver added that scammers often advise victims to lie to their banks when making transfers to these platforms. The app displays false return on investment data, but when victims attempt to withdraw profits, their accounts are either frozen, or the scammers cease all communication.

She highlighted the importance of recognizing red flags, particularly unsolicited messages promising high returns or offering “free money” to investors, as these are clear warning signs.

FBI’s Efforts to Combat Crypto Scams

In recent months, the FBI has intensified its crackdown on cryptocurrency scams, issuing multiple warnings about crypto threats. For example, on Sept. 3, the FBI cautioned businesses dealing with crypto exchange-traded funds about the notorious North Korean hacking group Lazarus, which started using complex and elaborate tactics to infiltrate their systems.

Additionally, the bureau reported that over $5.6 billion was lost in frauds and scams involving cryptocurrencies, with individuals over 60 being the most targeted demographic. In early October, the federal agency charged an individual with attempting to extort cryptocurrency assets.