Crypto exchange Debiex faces romance scam allegations, CFTC claims $2.3M in losses

The United States watchdog labeled Debiex a “bogus digital asset platform” and filed civil charges against the exchange for the alleged misappropriation of funds.
Cryptocurrency exchange Debiex is under scrutiny as United States regulators allege senior staff members orchestrated romantic relationships with potential customers in an effort to swindle their funds.

In a recent statement on Jan. 19, the U.S. Commodity Futures Trading Commission (CFTC) outlined that Debiex staff allegedly misled potential customers to gain their trust before convincing them to open up accounts with the crypto exchange.

Debiex assured customers their funds would be invested in crypto; however, they allegedly misappropriated the funds for personal gain:

“The CFTC’s complaint alleges Debiex’s unidentified officers and/or managers cultivated friendly or romantic relationships with potential customers by communicating falsehoods to gain trust, and then solicited them to open and fund trading accounts with Debiex.”
Despite only five victims being identified over the two-year period, the regulator claims that over $2 million was stolen through the pig butchering scheme.
“From approximately March 2022 through the present, it’s alleged Debiex accepted and misappropriated approximately $2.3 million from approximately five customers as part of this scheme,” the statement notes.

With Valentine’s Day only a few weeks away, individuals are urged to be cautious as Feb. 14 approaches. Be wary of connecting crypto wallets or signing up for crypto services through romantic connections.

In February 2022, Cointelegraph reported that the FBI had warned citizens during the week of Valentine’s Day to be aware of the rising number of romance scammers attempting to persuade individuals to send money to invest in crypto.

Related: Former IcomTech CEO sentenced to five years in prison for wire fraud

In recent times, romance scammers have bee capitalizing on the popularity of crypto to deceive and exploit victims for financial gain.

In May 2023, crypto exchange Binance came under fire as a Texas woman alleged the exchange was responsible for compensation over a man swindling her out of $8 million. This relationship was initiated on Tinder.

She argued that Binance was involved because it provided exchange services to the scammer.

However, United States judge Amos Mazzant ruled that there was no evidence that Binance participated in the theft.

More recently, though, romance scammers are adopting a swifter strategy to deplete funds, moving away from the traditional method of building trust through extensive interactions on dating apps.

In December 2023, Cointelegraph reported that an emerging tactic among romance scammers is targeted approval phishing. This involves convincing the victim to sign a transaction, granting scammers access to wallets and enabling them to swiftly drain funds.

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