'I invested on the recommendation of an executive vice president of a major New York investment bank'

"My personal banker believes the individuals involved are scammers." (Photo subject is a model.)

Dear Quentin,

I invested in a cryptocurrency-trading exchange on the recommendation of an executive vice president of a major New York investment bank. Although I believe the VP and this foreign crypto platform are real, my personal banker believes the individuals involved are scammers.

The following is a summary of my interactions concerning this investment scheme:

-- My banker contends that everyone involved in this investment is fake and is a scammer - my friend, the adviser, and the people at the crypto platform. The adviser I used is an executive VP at a major New York investment firm.

-- She repeatedly warned me not to tell anyone because she could be heavily fined and imprisoned for violating FINRA and her company's financial laws. I have not investigated or contacted FINRA because I don't want my recovery amount to be jeopardized.

-- The adviser controlled and dictated every action I took while trading on the platform from May 20 through June 30. All communication between the adviser and me was conducted through WhatsApp.

-- The adviser made every decision. She told me how to withdraw the money and transfer it to my bank account, how to make the wire transfers, and what to say to my bank. She also solely communicated directly with the cryptocurrency broker.

-- My initial investments totaled $1.1 million. As of June 30, my total assets were $2 million. Based on the return on investment that my adviser guaranteed, my total balance should be worth $20 million by the end of August.

I contacted the FBI's Internet Crime Complaint Center to investigate, but they determined that I had not provided them with enough information. Whenever legal professionals hear that the investment involves a foreign market, they decline to work with me.

Do you know of, or can you suggest, what recourse I have to recover these funds? If the U.S. adviser is real and is working as an executive VP for a New York investment bank, how can I get someone to investigate this case? Or have I lost it all?

Crypto investor

Related: I lost $240,000 after a 'friend' I met on Instagram encouraged me to invest in crypto. Can I write off my loss?

You can email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com. The Moneyist regrets he cannot reply to questions individually.

Scams are financial and psychological. You don't want to blow the whistle on this VP because you believe that will jeopardize your "investment."

Dear Investor,

No real investment opportunity is a sure thing.

I removed the name of the crypto platform and your personal bank, but I did some cursory research on the platform in question. There are discussion boards over 7 months old that allege the platform is indeed a scam, and furthermore say that the numbers you see on your screen are likely fictitious, whether they're $2 million or $20 million.

Your investment balance is the financial equivalent of communicating with a potential romantic partner, and believing that their photo is real, even though nothing else makes sense about what they have told you; the photo, of course, is probably AI or taken from another dating profile. The same is very likely true for your magically inflated crypto balance.

First off, that discussion board was very likely online before you appear to have made your initial investments. Secondly, always beware of anyone who promises you a guaranteed return on investment. There's no such thing, and should set off a huge alarm bell. Thirdly, legitimate investment advisers and wealth managers don't conduct business over WhatsApp.

The numbers you see on your screen are likely fictitious, whether they're $2 million or $20 million.

I honestly don't know whether this executive VP is an unwitting victim who has been persuaded to invest their own cash, or whether they are an agent of the alleged scammer. If investigated, whatever the truth, they would presumably claim to be the former. Going forward, however, take the FBI's advice: give them every last detail and document and individual.

Scams are both financial and psychological. You don't want to blow the whistle on this VP because you believe that will jeopardize your investment. But there was very likely no "investment" to begin with and, given that she is based in the U.S. and gave you all the instructions, they would likely be a person of interest in this case and even a gateway to the larger organization.

Such confidence schemes are known as "pig butchering" - a particularly rancid term for a rancid business. Scam artists scour social-media platforms, public records, country clubs, social events, and dating sites. They then take their sweet time "fattening up" their marks, cultivating trust and gradually feeding them promises of bigger and better returns.

The Financial Industry Regulatory Authority (FINRA) does investigate crypto scams, but only if they involve FINRA-registered brokers, brokerage firms or crypto assets that qualify as securities. The FBI will investigate if the alleged scam involves U.S. citizens and U.S. wire services. But you need to accept that your money may be lost, and proceed with full disclosure.

Related: My father coerced me into giving $100K to a 'lucrative' cryptocurrency pyramid scheme. I'm suspicious about how it works

FBI warnings

The FBI warns investors about the methods scammers use to huckster successful, smart people. Chief among the carrots is the promise of seemingly irresistible returns. They often find their victims through social media, text messages, dating sites, messaging apps such as WhatsApp and Telegram, online advertisements, or even third parties, the bureau says.

When contact is established, scammers work to build trust through flattery, shared personal experiences, romantic interest, fake testimonials and, yes, promises of love or money, the bureau adds. They may initially allow small withdrawals to make the investment appear legitimate and provide step-by-step guidance on making larger deposits.

Once the victim is hooked, the scammer advises the investor to open a crypto account at a reputable exchange, transfer money from a traditional bank account to the new cryptocurrency account, convert the money to the crypto and, finally, open an account on the "investment platform" provided by the scammer or an individual. This is your story almost to the word.

Once the victim is hooked, the scammer finally convinces victims to open an account on the "investment platform."

There has been success in tracking down stolen/scammed funds. The Justice Department said in July 2025 that it took legal action against the operators of a fraudulent cryptocurrency investment platform. According to the FBI, scammers contacted victims through social media and lured them with promises of high returns and little risk.

The platform displayed fake profits to encourage additional investments, then demanded fraudulent fees or taxes when victims tried to withdraw their funds. One victim in Missouri reportedly lost more than $16 million, while millions of dollars in suspected scam proceeds were allegedly laundered through cryptocurrency.

Go back to the FBI and tell them everything you know. Spare no detail and no individual who you believe was involved in this scheme. Keeping your executive VP on your good side won't help you now, and trying to negotiate with the crypto platform and/or WhatsApp contacts will only flummox you further and attempt to deter you from taking action.

The FBI handles international cyber frauds and cross-border financial crimes. As it did with that case from July 2025, the bureau uses blockchain analysis and partners with international law enforcement agencies to track overseas cybercriminals, freeze accounts, dismantle large-scale fraud rings and, hopefully, return some or all of the money to the victims.

Once again, however, there are no guarantees.

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-Quentin Fottrell