The Washington State Department of Financial Institutions (DFI), Securities Division has received a complaint regarding Cryptonomy Finance, a website claiming to be a fully regulated financial entity, adhering to both European and international financial regulations.
The investor learned of Cryptonomy Finance from a YouTube video. The investor deposited a total of $5,000 to purchase XRP cryptocurrency. At first, the investor deposited funds into a one month flexible account via the Cryptonomy Finance website. After one month passed, the investor attempted to withdraw their funds and received nothing. When the investor inquired with Cryptonomy Finance, he was told that his account was moved to a “fixed” account where he would not be able to access his funds for an additional year. The investor chose to trust the move of their account and invested more funds a few months later. The investor later saw information online from other investors describing the same situation of their funds being moved to a fixed account without their consent.
DFI has not verified these allegations in the complaint.
Preventing Fraud
DFI urges consumers to exercise extreme caution before responding to any solicitation offering investment or financial services. Gather as much information as possible about the entity, platform, or individuals offering the investment. NOTE: Do not invest more money than you are willing to lose.
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.
Additional Resources
- Virtual Currency, Cryptocurrency, and Digital Assets Information for Consumers
- Information regarding investing strategies, investment products, and how to protect yourself from fraud
- What You Can Do to Avoid Investment Fraud