The California Department of Financial Protection and Innovation (DFPI) has received a complaint from a California resident regarding a crypto investment scam.

The victim told DFPI that he deposited more than $300,000 into ExpertDreamTrade.com, which he believed operated like a bank, but when he asked to withdraw the money, the scammers told him he would need to pay $50,000 to get it out. He believes he has tracked to the money to the crypto wallets of two individuals located in Nigeria, but so far, cannot get his money back. These allegations have not been verified by the DFPI.

This appears to be what is commonly called an “Advance Fee scheme,” which can take many forms, as discussed here: https://www.fbi.gov/scams-and-safety/common-scams-and-crimes/advance-fee-schemes.

The DFPI urges consumers to exercise extreme caution before responding to any solicitation offering investment or financial services.  To check whether an investment or financial service provider is licensed in California, consumers may contact the Department for questions or inquiries at ask.dfpi@dfpi.ca.gov or call toll-free at (866) 275-2677.  If a consumer believes a person or company has violated state law or acted improperly regarding a consumer financial product or service, they may file a formal complaint with the DFPI at https://dfpi.ca.gov/file-a-complaint/.