Washington State Department of Financial Institutions
04/29/2024 | Press release | Distributed by Public on 04/29/2024 12:17
Cryptocurrency Trading Platforms Gpt4-rook.ink, Gpt4reh.ink, Gtrok.org and Mughan.cc Appear to be Engaged in Fraud
The Washington State Department of Financial Institutions (DFI), Securities Division has received a complaint that a purported cryptocurrency trading platform using the websites gpt4-rook.ink, gpt4reh.ink, gtrok.org, and mughan.cc (collectively, Gtrok), may have engaged in fraud. It appears the websites are no longer active.
The investor reported learning of the Gtrok trading platform from an individual going by the name Ada Lee (Lee), who claimed to reside in Bellevue, Washington. The investor and Lee met online through a dating website, then communicated primarily via WhatsApp. Lee convinced the investor that she was a real person by providing personal photos and videos, and a driver's license that appears to be fictitious. Lee claimed to have an account with Gtrok that was making significant returns. She helped the investor to set up an account on the platform and purportedly deposited 500 USDT (Tether) and later 250,000 USDT to the investor's account as a gift. Early on, the investor was able to withdraw funds in the amount of $3,500. Subsequently, Lee induced the investor to wire approximately $220,000 to various foreign bank accounts purportedly for deposit in the investor's Gtrok trading account. She also obtained a personal wallet address and seed phrase for the investor's DeFi wallet holding over 230,000 USDC (USD Coin) which she transferred to another Coinbase wallet without the investor's permission. Altogether, the investor transferred more than $450,000 in USD and USDC to Gtrok over the span of about two months. The investor believed the funds were used for purchasing Bitcoin. Within a short time, the investor's account appeared to gain profits of over 2 million USDT.
When the investor requested to withdraw the principal balance in the account, Gtrok imposed a 12 percent fee on the purported gains, and stated the funds would be frozen until the fee was paid. The online customer service also threatened to add an additional one percent per day service maintenance fee if the annual fee was not paid within 20 days. Around the same time, the platform web address changed. Despite multiple attempts to withdraw the funds, the investor has been unable to withdraw funds outside of the initial $3,500. These allegations have not been verified by DFI.
DFI has received similar complaints from investors reporting to have been defrauded in apparent romance scams. Scammers involved in romance scams will often create a fictitious profile and use it in different scams. It is likely Ada Lee is fictitious.
This appears to be what is commonly called "Advance Fee Fraud", which can take many forms. Learn more about advance fee fraud. It also appears to be a "Pig Butchering" or Romance Scam.
Some of the red flags exhibited by Ada Lee and Gtrok indicating potential fraud include:
- The gifting of "free" funds or cryptocurrency to induce the consumer to invest.
- Instructing the investor to wire funds to various bank accounts in foreign countries.
- Frequent changes of the trading platform's web address.
- The imposing of significant fees in order to withdraw funds.
DFI urges consumers to exercise extreme caution before responding to any solicitation offering investment or financial services. Investment professionals need to be licensed with DFI to offer investments to Washington residents. In addition, most investment products sold need to be registered with DFI.
To check the licensing status and to find out if there are any complaints against an investment professional or investment product, please visit FINRA Brokercheck or contact the Washington State Department of Financial Institutions, Securities Division at (360) 902-8760. If you live outside of Washington State, contact your state securities regulator.
If a consumer believes a person or company has violated state law or acted improperly regarding an investment product or service, they may file a formal complaint with the Securities Division.
Additional Resources:
Virtual Currency, Cryptocurrency, and Digital Assets Information for Consumers