Types of Cryptocurrency Fraud

Fraudsters build emotional relationships over weeks or months, then introduce a fake investment platform. Victims deposit crypto; the platform disappears. Funds often reach centralised exchanges with KYC requirements.

Professional-looking websites impersonate Binance, Coinbase, or other legitimate exchanges. They accept deposits but block withdrawals with fake verification fees or taxes. Blockchain analysis reveals where the funds actually went.

Developers create a DeFi project, attract investor deposits, then drain liquidity pools and disappear. Smart contract forensics can trace token movements and sometimes identify the founders through on-chain links.

Victims are convinced to send crypto to a fake bridge address to swap chains or claim rewards. The bridge is fake — the address belongs to the scammer. Recovery depends on whether funds moved to an identifiable exchange.

Fake login pages, emails, or browser extensions steal private keys or seed phrases. The thief drains wallets within hours. Speed is critical — we trace where funds went and act before they are cashed out.

Investment platforms promising guaranteed daily returns, paying early investors with new deposits. When new money dries up, the scheme collapses. Blockchain reveals the pyramid structure and where the largest sums flowed.

Coordinated groups artificially inflate a token price through misleading hype, then sell at the peak. Victims are left with worthless tokens. Recovery is difficult but possible if organisers can be identified.

Fake NFT projects, counterfeit collections on marketplaces, or phishing links disguised as minting sites. Since NFTs live on-chain, ownership transfers are traceable — and some marketplaces cooperate with law enforcement.

Platforms offering crypto-backed loans that require upfront collateral or processing fees. After payment, the loan never arrives. Tracing the collateral deposit can lead to exchange accounts.

Remote access trojans, clipboard hijackers, or exchange hacks that steal funds directly. These are among the most technically complex cases, but not all are hopeless — rapid response can freeze exchange deposits.