FBI Warns ICHCoin Scam Has Cost Americans Their Life Savings

The FBI is raising concerns about a cryptocurrency scam that has resulted in some Americans losing their entire life savings.

As reported by abc13, the bureau claims that ICHCoin, which attracted victims by promising a crash course on cryptocurrency investments, is a sophisticated scam that has extracted millions of dollars from individuals throughout the United States.

Amanda Culver, assistant special agent in charge at FBI Houston, revealed to the news outlet that the con artists behind the scam have been deceiving individuals since December 2023 and have taken about $30 million through the ICHCoin app, with some victims reportedly losing their entire life savings.

Culver emphasized that scammers can readily find victims because “people are very interested in investing in cryptocurrency,” highlighting the necessity of conducting thorough research prior to making any investment decisions.

The FBI is actively investigating the scheme and has encouraged victims to provide information about ICHCoin or similar scams by completing their online questionnaire.

How the ICHCoin scam operates

According to Culver, the scam unfolds in several phases. Initially, scammers reach out to victims on social media sites like Facebook and Instagram. They start by offering to educate the victim on investing in cryptocurrency, promising lucrative earnings through crypto investments.

Once the victims are persuaded, they are directed to messaging platforms like WhatsApp, where a fictitious professor or instructor takes over to further the scam. While Culver did not elaborate on the subsequent steps of the scam, the Washington State Department of Financial Institutions had previously flagged ICHCoin in its warnings back in July.

At that time, crypto.news reported that victims were drawn into the “Excellence and Innovation Fortune Business School,” which serves as a front for the ICHCoin scam, and were grouped in circles operated by these fraudulent academics, who provided daily trading signals and investment advice for substantial returns.

This is when victims are introduced to a fraudulent crypto trading platform, specifically the ICHCoin app, and are encouraged to make investments. Culver noted that scammers frequently instruct victims to mislead banks when making transfers to these platforms. The app displays false return on investment statistics, but when users attempt to withdraw any profits, their accounts are frozen, or the scammers vanish.

She also highlighted the importance of recognizing warning signs, particularly when receiving “unsolicited messages” that promise significant returns or offer “free money” to investors, asserting that these are clear indicators of a scam.

FBI pursuing cryptocurrency scammers

In recent months, the FBI has intensified its efforts against cryptocurrency scams and is bolstering investigations. The bureau issued alerts regarding crypto threats multiple times in September alone.

For example, on September 3, the FBI warned businesses involved with crypto exchange-traded funds about the infamous North Korean hacking group Lazarus, which has begun employing “complex and elaborate” strategies to breach their systems. In a follow-up report, the bureau disclosed that more than $5.6 billion was lost to frauds and scams involving cryptocurrencies, with individuals over 60 being the most vulnerable demographic.

In early October, the federal agency also charged a person with attempting to extort cryptocurrency assets.