The Washington State Department of Financial Institutions (DFI), Securities Division has received a complaint regarding a purported cryptocurrency options trading platform, cbebit.com (“Cbebit”). Later, the website address changed to cbebitex.com.
The investor was introduced to Cbebit.com by an individual named Gary Bai (“Bai”). The investor communicated with Bai over WhatsApp. Bai offered to teach the investor how to options trade on the Cbebit platform, including how to read “K graphs” and determine the timing on when to “buy long” or “buy short.” This gave the investor the impression that Bai was a professional and knowledgeable trader who understood the market. Bai would tell the investor to login to their Cbebit account and direct the investor on what cryptocurrency to swap, when to trade, and whether to “buy long” or “buy short.”
After investing $865,000, the investor’s Cbebit account purportedly grew to over $3 million. Bai directed the investor to withdraw funds from their Cbebit account. When the investor attempted to withdraw, a notification appeared demanding the investor pay a 14% verification fee, or approximately $400,000, within a few weeks. The investor refused to pay the fee. The investor lost a total of approximately $865,000.
The investor sent funds to the following cryptocurrency wallet address associated with Cbebit: 0x97cBadF533136537480526976732c298f1d0eAa5. The phone number used by Bai on WhatsApp is 425-389-9008.
This appears to be what is commonly called Advance Fee Fraud, which can take on many forms. It also appears to be what is commonly called a Pig Butchering Scheme (or Cryptocurrency Investment Scheme).
DFI urges consumers to exercise extreme caution before responding to any solicitation offering investment or financial services or advice. Investment professionals need to be licensed with DFI to offer investments to Washington residents. In addition, most investment products sold need to be registered with DFI.
To check the licensing status and to find out if there are any complaints against an investment professional or investment product, please visit FINRA Brokercheck or contact the Washington State Department of Financial Institutions, Securities Division at (360) 902-8760. If you live outside of Washington State, contact your state securities regulator.
If a consumer believes a person or company has violated state law or acted improperly regarding an investment product or service, they may file a complaint with the Securities Division.
Additional Resources
Virtual Currency, Cryptocurrency, and Digital Assets Information for Consumers