An investor has claimed to lose $310,000 to an allegedly fraudulent crypto trading platform after being introduced to it through an unsolicited LinkedIn connection request. This incident has been highlighted in a consumer alert issued by the Washington State Department of Financial Institutions (DFI) Securities Division on June 13.

According to the DFI, the investor began using a purported crypto trading platform named “Ethfinance” after learning about it from a random friend request on LinkedIn. The investor transferred a total of $310,000 from his DeFi wallet to the platform, expecting to earn profits from crypto trading. However, when he attempted to withdraw some of his initial principal and reported profits, he was informed that additional funds were required to complete the “smart contract” necessary for the withdrawal.

The investor refused to send any additional funds and subsequently found himself unable to withdraw any money from his account, which had been locked. The DFI described the case as appearing to be an “Advance Fee Fraud,” although it has not verified the allegations. Advance fee frauds typically involve scammers promising significant returns in exchange for an upfront fee, only to disappear or demand more money once the initial payment is made.

The Washington DFI’s crypto scam tracker has recorded a previous complaint about Ethfinance, in which a California resident reported losing over $165,000. This individual was lured into the scam by someone they met online who offered to teach them how to make money trading crypto options. The investor realized it was a scam when the "CEO of Crypto Customer Service" on Telegram requested 25% of the profits as "taxes" to complete the withdrawal.

In addition to the Ethfinance alert, the DFI issued three more alerts on June 13, warning about two other allegedly fraudulent crypto exchanges and a fraudulent investment management platform. The DFI's ongoing efforts to alert the public about such scams highlight the increasing prevalence of crypto-related fraud and the need for investors to exercise caution when approached by unsolicited contacts online.