A new cryptocurrency fraud that used counterfeit domains of the former Singapore International Monetary Exchange claimed five victims (Simex). In the United States, the victims lost more than $10 million.
As per investigations, the victims were lured by the fraudsters into participating in a cryptocurrency scam where they invest in false platforms and have their money transferred into private wallets. The incident took place this year between May and August, according to the US Department of Justice (DOJ).
In addition, the fraudsters set up seven fictitious domains for the earlier Simex (SGX) ( it merged with two other businesses to form the Singapore Exchange in 1999) to give the victims the impression that the plan was legitimate.
The DOJ said that the victims would initially meet the fraudsters on social networking sites or dating apps. The scammers would occasionally introduce themselves after sending a text message that they claimed to have sent to the wrong number. Later, they established a rapport and gradually won their trust before presenting the idea of funding a cryptocurrency-based firm.
The victims were persuaded to make investments after the trap was established. The fraudster leaves with all of the money after transferring it to the bogus investment scheme.
According to an SGX representative, Simex has not used the specified name since the merger. The SGX Group does not run any investment platforms, including ones where people can trade cryptocurrency or other financial goods, the spokesman continued. He added that only licenced brokers with their own investing platforms are allowed to provide investors with access to SGX-listed items.