Washington DFI Warns of Cryptocurrency Scams Involving Fake Investment Education Foundations and AI Bots

The Washington State Department of Financial Institutions (DFI) has issued a critical warning regarding fraudulent "investment education foundations" that target individuals eager to learn about stocks and cryptocurrency. These scams often begin with social media advertisements that lead potential investors to messaging app groups managed by impostors posing as founders. Victims are promised education and "risk-free" trials, but the true intent is to extract money through fake loans and commissions. Scammers entice victims with a purported AI bot that generates fictitious profits, which eventually leads to real financial investments. Once funds are transferred, investors find themselves unable to withdraw any profits due to fabricated regulatory issues.

DFI Director Charlie Clark emphasizes the importance of skepticism towards unsolicited offers and encourages individuals to verify the legitimacy of any foundation before investing. The use of real government documents by scammers adds to the deception, making it crucial for investors to stay informed and cautious. To combat these scams, DFI offers resources and alerts for those who suspect fraudulent activity.