NH says fake cryptocurrency scheme took investor’s money

An online scam that pretended to invest a New Hampshire resident’s money in cryptocurrency, complete with a fake account, has been issued a cease and desist order by the state Bureau of Securities.

According to a press release from the Secretary of State’s office, a “retired New Hampshire resident” was convinced through Facebook to buy “approximately $3,526 worth of cryptocurrency” on a site call Finstate, after which they could “log into an ‘account’ on Finstate’s website which purportedly showed deposits, credits, total profit, and an account balance”  and guaranteed that the investor could not lose money.

The Bureau alleges that the funds were actually sent to Binance, a cryptocurrency exchange not available to U.S. investors, and was never traded even though “Finstate continued to show fictitious account activity.”

“The investor watched their Finstate account grow to a total value of $60,762 on April 11, 2024. As of the date the petition was filed, the investor had not received any payment from Finstate and has been unable to withdraw from their Finstate account,” the statement said.

The Securities Bureau requested an immediate cease and desist and a permanent bar from the securities business in New Hampshire. It is also seeking restitution and fines and costs.

The Bureau said it “has observed a marked increase in the use of social media platforms to facilitate fraudulent schemes. The Bureau, through its Investor Education program, urges investors to properly identify contacts and carefully vet solicitations on social media to invest.”