Washington state officials are concerned after a cryptocurrency scam cheated investors out of nearly $10 million. Regulators say a network of fake “investment foundations” used social media and messaging apps to trick people into high-stakes fraud between 2024 and 2025.
The Washington State Department of Financial Institutions (DFI) says these groups, including one called Zenith Asset Tech Foundation, acted like legitimate schools. They ran ads on Facebook, Instagram, and LinkedIn promising free training and “AI signals” that could supposedly predict the best times to trade crypto, according to KOMO News.
A $16 billion crisis as online fraud hits record highs
Once people showed interest, they were pulled into private chats on WhatsApp and Telegram. To make the scam look real, the groups even registered their fake trading platforms as businesses in Washington state. Investors were shown fake charts that made it look like they were making a lot of money, which encouraged them to deposit even more of their life savings.
The trap closed when people tried to take their money out. The platforms suddenly demanded “advance fees” that were never mentioned before. Desperate to get their cash back, several people paid these extra fees, but they never saw a dime of their original investment or the supposed profits.
Millions already lost
In total, at least 38 people lost about $9.9 million. This includes three Washington residents who lost $49,000.
DFI Director Charlie Clark noted that online fraud is hitting record highs, with Americans losing roughly $16 billion to scams in 2025 alone. The state is now moving to fine these groups $1 million and force them to stop operating.
“It’s more important than ever for regulatory agencies like DFI to take enforcement action like this in an effort to protect people from losing their life savings. Federal Trade Commission data shows Americans reported losing nearly $16 billion to fraud in 2025, an increase of more than $3.5 billion over the previous year. That’s unconscionable to us,” Clark said.
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