By: Amit Kmir / May 29, 2025

The Washington State Department of Financial Institutions (DFI) has issued a consumer alert concerning Cryptonomy Finance Ltd, a purported cryptocurrency platform suspected of fraudulent activities. This alert follows a complaint from an investor who reported significant issues with fund withdrawals after investing in XRP through the platform.

Allegations Against Cryptonomy Finance Ltd

According to the DFI, the investor discovered Cryptonomy Finance via a YouTube video and proceeded to deposit $5,000 into what was described as a one-month flexible account. However, upon attempting to withdraw funds after the stipulated period, the investor was informed that the account had been converted into a “fixed” account, restricting access to the funds for an additional year. Trusting the platform, the investor added more funds, only to later find similar complaints from other users online, indicating a pattern of unauthorized account changes and fund inaccessibility.

It’s important to note that the DFI has not independently verified these allegations but emphasizes the need for caution when dealing with such platforms.Washington DFI

DFI’s Advisory to Investors

The DFI urges consumers to exercise extreme caution before responding to any investment solicitations, especially those promising high returns or claiming regulatory compliance without verifiable credentials. Investors are advised to:

• Thoroughly research any investment platform or individual offering financial services.
• Verify the licensing status of investment professionals through official channels like the FINRA BrokerCheck.
• Be skeptical of unsolicited investment offers, particularly those found on social media or video platforms.

For residents outside Washington State, it’s recommended to contact local state securities regulators to verify the legitimacy of investment opportunities.Washington DFI

Protecting Yourself from Investment Fraud

To safeguard against potential fraud:

• Never invest more money than you can afford to lose.
• Be wary of platforms that change account terms without prior consent.
• Stay informed about common investment scams and tactics used by fraudsters.

For more information and resources on avoiding investment fraud, visit the DFI’s official website.