The FBI is sounding the alarm on a cryptocurrency scam that’s cost some Americans their entire life savings.

According to an abc13 report, the bureau alleges that ICHCoin, which lured victims under the pretense of offering a crash course on cryptocurrency investing, is an elaborate scam that has siphoned millions of dollars from individuals across the United States.

FBI Houston’s assistant special agent in charge Amanda Culver told the media outlet that the perpetrators behind the scam have been duping people since December 2023 and have stolen roughly $30 million via the ICHCoin app. Some victims had allegedly lost their entire lifesaving.

Culver added that scammers can easily find victims as “people are very interested in investing in cryptocurrency,” emphasizing the importance of doing proper research before making any investments.

The FBI is currently investigating the scam and has urged victims to come forward with information regarding ICHOCoin or similar scams by filling out their online questionnaire.

How the ICHCoin scam works

According to Culver, the scam works in multiple stages. First, scammers approach victims on social media platforms like Facebook and Instagram. The icebreaker is an offer to educate the victim on cryptocurrency investing, promising to open doors to lucrative profits through crypto investments.

Once victims are convinced, they are redirected to messaging platforms like WhatsApp, where a fake professor or teacher contacts them to proceed with the scam. While Culver did not provide more details on how the scam plays out from here, the Washington State Department of Financial Institutions had flagged ICHCoin in one of its warnings in July. 

At the time, crypto.news reported that the victims were lured into the “Excellence and Innovation Fortune Business School,” which is a front for the ICHCoin scam and were added to groups controlled by these fake academics, which offered daily trading signals and investment tips for massive returns.

This is also where the victims are introduced to a fake crypto trading platform, in this case, the ICHCoin app, and urged to make investments. Culver added that the scammers often urge victims to lie to the banks when making transfers to these platforms. The app also shows false return on investment data, but when attempts are made to withdraw any profits, the accounts are frozen, or the scammers ghost the victim.

She also stressed the importance of recognizing red flags, particularly when receiving “unsolicited messages” promising high returns or offering “free money” to investors, emphasizing that these are clear warning signs.

FBI hunting crypto scammers

Over the past months, the FBI has increased its crackdown on cryptocurrency scams and ramped up investigations. The bureau issued warnings regarding crypto threats on multiple occasions in September alone. 

For instance, on Sept. 3, the FBI cautioned businesses dealing with crypto exchange-traded funds that the notorious North Korean hacking group Lazarus started using “complex and elaborate” tactics to infiltrate their systems. In a subsequent report, the bureau revealed that over $5.6 billion was lost in frauds and scams involving cryptocurrencies, with individuals over 60 as the most targeted demographic.

In early October, the federal agency also charged an individual with attempting to extort cryptocurrency assets.