FBI Investigates ICHCoin Crypto Scam Costing Victims Millions

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Hassan Shittu

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Hassan Shittu

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Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...

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Last updated: 

October 4, 2024

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The FBI has launched a full-scale investigation into a sophisticated crypto scam involving the fraudulent platform ICHCoin, which has swindled over $30 million from unsuspecting victims across the United States.

The scheme, which began in December 2023, has targeted nearly 600 individuals, many of whom have lost their entire life savings.

FBI Houston’s Assistant Special Agent in Charge Amanda Culver has labeled ICHCoin both a “scheme” and a “scam,” and the FBI is now urging additional victims to come forward.

ICHCoin Crypto Scam: Save Yourself From Falling Victim

The ICHCoin scam operates through a calculated and methodical approach, relying on social media platforms like Facebook and Instagram to find victims.

The perpetrators first reach out through fake profiles, offering what appears to be legitimate advice or courses on cryptocurrency investing.

This initial contact is made to gain the victim’s trust, and once successful, the scam moves to a messaging app like WhatsApp, where the victim is introduced to a so-called “crypto expert” who offers step-by-step guidance on making investments.

Victims are quickly convinced to transfer large sums of money to the ICHCoin platform.

Culver described how individuals are often manipulated into lying to their banks about the nature of these transactions.

Once the funds are transferred, victims can track their supposed investments through the ICHCoin app.

However, this app only creates the illusion of gains. When victims try to withdraw their funds or collect their returns, they are met with silence—the scammers either “ghost” them or freeze the accounts, leaving the victims unable to recover their money.

For many victims, this realization comes too late, after their life savings have been funneled into a fraudulent system.

Culver explained saying;

“The average person could certainly be fooled by this scam”

To date, the FBI has identified victims in Houston but is actively seeking more across the country.

FBI Intensifies Efforts to Combat Cryptocurrency Fraud

Cryptocurrency fraud has become a primary focus for the FBI, as millions of dollars continue to be lost in these scams.

In response to the growing number of cases, the FBI has ramped up its crackdown on fraudulent crypto platforms.

September alone saw multiple warnings issued by the bureau regarding the rise in crypto scams.

Notably, the FBI’s Internet Crime Complaint Center (IC3) recently reported massive losses of over $5.6 billion in 2023.

Crypto-related crimes made up nearly half of the total losses. The majority of these were linked to investment scams, which saw a 53% increase from $2.57 billion in 2022 to $3.96 billion in 2023.

Individuals aged 30 to 49 filed the most complaints, but older victims over 60 experienced the greatest financial impact, with over $1.24 billion in losses.

In the case of ICHCoin, Culver noted that the FBI’s investigation remains ongoing, with the agency actively pursuing leads to uncover whether the scammers are based in the U.S. or abroad.

While the precise identities of the perpetrators have not yet been determined, the FBI is determined to bring those responsible to justice.

The bureau is now urging any victims of ICHCoin, or similar cryptocurrency scams, to come forward.

A questionnaire has been made available on the FBI’s website for victims to report their experiences.

Before now, the FBI issued a warning to Americans regarding the use of cryptocurrency services that are not registered and advised users to only use the ones that adhere to anti-money laundering (AML) regulations.