A man from Toronto is claiming to be in a state of devastation after losing $50,000 in a cryptocurrency investment.
CTV News Toronto has granted the man, named John, anonymity. He said he first got into cryptocurrency investing when he was contacted via social media. Initially, he only had a few hundred dollars but eventually added thousands.
According to John, he had been receiving detailed reports that showed he had more than doubled his investments. However, when he tried to withdraw some money from the platform without registering, the company stopped responding to his emails and calls.
“I was trying to find a better way to grow my money because I wasn’t content with what I was getting,” John stated, adding that “the money was for me, my family, to pay bills, for a renovation we wanted to do, to leave it for my kids.”
Even though the cryptocurrency market has lost more than a trillion dollars in value, the IPO has warned investors that it is a great time for them to enter the market.
“We are seeing lots of bad actors taking advantage of cryptocurrency,” said Detective Constable John Armit from the Ontario Provincial Police (OPP) Anti-Racket Branch.
The OPP warned that even though the crypto market is experiencing turmoil, fraud is still a major issue in the industry. Many victims are being lured into trading platforms offering fake currency.
“The websites look very legitimate and when you communicate with people through the website, you’re actually talking to the scammers,” Armit said.
According to Armit, the average victim in the cases he has handled has lost $150,000.
“It is absolutely devastating. We are seeing people having to go to food banks, move in with other family members, and sell property – it’s crushing for them,” he said.
The Canadian Anti-Fraud Center reported that Canadians lost $163.9 million to investment scams last year. It warned investors to be very careful when investing in cryptocurrency.
“In this kind of environment, you want consumers to go to trusted exchanges,” said James Moore, Director of Anti-Money Laundering (CAMLO) at Binance Canada, in an interview.
Moore said that the company is working with OPP investigators in cybercrime investigations and has found that most scams occur when people are invited to make cryptocurrency investments via social media.
“If you get spam and don’t recognize the sender, especially if it’s about an investment, don’t open it and don’t reply,” he advised.
