*FOR IMMEDIATE RELEASE FROM
**THE* *WASHINGTON DEPARTMENT OF FINANCIAL INSTITUTIONS

**Tuesday, March 25, 2025
**CONTACT*:  
Lyn Peters, DFI Director of Communications
PH 360-902-8731, [email protected]

Bill Beatty, DFI Division of Securities Director,
PH 360-902-8760, [email protected]

*Washington DFI Warns of Cryptocurrency Scams Involving Fake ‘Investment Education Foundations’ and AI Bots*

Fake foundations lure investors with promises of education on stocks and cryptocurrency

Olympia – The Washington State Department of Financial Institutions (DFI) Securities Division joins the North American Securities Administrators Association members in warning the public about a new investment scam [ [link removed] ] involving fake “investment education foundations.” These fake foundations lure investors with promises of education on stocks and cryptocurrency, "risk-free" trials, and loans. The main goal of the scammers is to persuade investors to invest their own money into the platform as well as take out fake loans, paying exorbitant commissions.

"The rise of fake 'investment education foundations' is a concerning trend preying on investors' desire to reduce the risk of investing in cryptocurrency," DFI Director Charlie Clark said. "These scams often promise guaranteed returns and sophisticated advice, but they are designed to deceive. It’s crucial for investors to remain vigilant and skeptical of unsolicited offers before handing over their money."

The scam typically starts with social media ads leading to messaging app groups managed by a fake founder and bots. The founder provides investment lessons, eventually introducing a fraudulent cryptocurrency exchange. Investors are enticed to test a proprietary AI bot with “free” tokens, which generate fake profits, leading to real money investments. If funds are lacking, fake loan providers on the messaging app offer loans deposited directly onto the exchange. Investors can’t withdraw profits until they repay these fake loans or commissions, with accounts frozen for fake regulatory reasons. The scam is eventually shut down and often restarted under new names.

Scammers legitimize their operations using real government and professional documents, including registration with the U.S. Department of the Treasury and the Securities and Exchange Commission. They may also post articles online to appear legitimate and use old website domains to seem established.

*How to Protect Yourself from Investment Fraud
*DFI urges investors to exercise caution before responding to unsolicited investment offers, especially those received though social media, emails, or phone calls.

“Don’t assume an education foundation is trustworthy just because it is promoted on social media,” Clark noted. “Contact DFI to check if the education foundation and cryptocurrency exchange are registered.”

If you suspect fraud or illegal activity, reach out to DFI immediately. For additional tips and resources, visit DFI’s informational pages on Investment Fraud [ [link removed] ] and Financial Scams and Fraud [ [link removed] ]. You may also wish to sign up to receive our Consumer Alerts [ [link removed] ].

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*About DFI* ▪ www.dfi.wa.gov [ [link removed] ] ▪ 360-902-8700 ▪ 877-RINGDFI (746-4334)
The Washington State Department of Financial Institutions regulates a variety of financial service providers such as banks, credit unions, mortgage brokers, consumer loan companies, payday lenders and securities brokers and dealers. The department also works to improve financial education throughout Washington through its outreach programs and online clearinghouse www.dfi.wa.gov/financial-education [ [link removed] ]. In addition to posting information about licensees and administrative actions, DFI uses the Web and social media to provide financial education information: [link removed] ■ www.instagram.com/wastatedfi/ [ [link removed] ] ■ [link removed] ■ [link removed] ■ [link removed] ■ www.homeownership.wa.gov [ [link removed] ] ■ www.linkedin.com/company/state-of-washington-department-of-financial-institutions/ [ [link removed] ] ■ _https://bsky.app/profile/wastatedfi.bsky.social_

*About the Division of Securities *▪ www.dfi.wa.gov/sd [ [link removed] ] ▪ 360-902-8760 ▪ 877-746-4334
The Division of Securities regulates securities investments, franchises, business opportunities, and off-exchange commodities sold in Washington and the firms and individuals that sell these products or provide investment advice. The Division handles complaints, conducts investigations, and takes appropriate enforcement actions to protect investors and combat fraud.

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