Cryptocurrency scam: Toronto man loses $50,000

A Toronto man says he was devastated after losing $50,000 while trying to invest in cryptocurrencies.

CTV News Toronto confirmed anonymity, and the man calling John said he started investing in cryptocurrencies, first with hundreds and then thousands after connecting with someone on social media.

According to detailed reports he received, the investment amount more than doubled, but when he tried to withdraw money from an unregistered platform, the company fell silent and refused to respond to his calls and emails. did.

“I wasn’t happy with what I got, so I was trying to find a better way to make more money. It’s the renovation I wanted to do to leave it for my kids.”

The cryptocurrency market has lost more than $1 trillion in value this year, but the OPP has issued a warning that some investors may think now is a good time to enter the market.

We see a lot of criminals abusing cryptocurrencies, said John Armitt, chief of the assault prevention branch of the Ontario Police Department (OPP).

OPP says fraud is a major problem in the industry, with many victims lured to fake trading platforms despite cryptocurrency going through turbulent times.

“The website actually looks very legitimate. When you contact people through the website, you are actually talking to the scammers themselves,” said Armit.

Armit said the average victim in the cases he handled lost about $150,000.

“This is absolutely devastating. Seeing people have to go to food banks, move in with other families and sell their properties. It’s devastating for them,” he said.

The Canadian Center for Fraud Prevention said Canadians lost $163.9 million to investment fraud last year, saying investors should be careful when buying cryptocurrencies.

In this kind of environment, consumers want to go to trusted exchanges, James Moore, Chief Anti-Laundering Officer (CAMLO) at Binance Canada, said in an interview.

According to Moore, the company is working with OPP’s cybercrime investigators and has found that most scams occur when people are encouraged to invest in cryptocurrencies on social media.

“If you get an unsolicited message and you don’t know who it’s from, don’t click on it or reply to it, especially if it’s about investing,” he said.