Crypto Scam: How It Works and How to Recover
Fraud across fake exchanges, wallet drainers and rug pulls that move crypto out of reach. Also known as bitcoin scam, wallet drainer, fake exchange.
Free case assessmentHow the fraud works
Crypto scams span fake exchanges, fraudulent wallets and 'wallet-drainer' approvals that empty balances, as well as rug pulls on worthless tokens. Victims are induced to send crypto or grant smart-contract permissions, after which assets are dispersed across wallets to obscure the trail.
Warning signs
- 'Support' asking for your seed phrase or private keys
- A wallet 'connect' that requests unlimited approvals
- Tokens you can buy but never sell
- Exchanges with no regulatory footprint
- Promises of airdrops or 'doubling' your coins
Evidence to preserve
If you have been affected, gather:
- Your wallet address and the scam wallet/contract addresses
- Transaction hashes (TxIDs) for each transfer
- The exchange or dApp used
- Any approvals you granted
- Communications with the 'project' or 'support'
How victims recover funds
The primary recovery route is crypto tracing & recovery. Crypto tracing follows funds across the blockchain from your wallet, through intermediary addresses, to the exchange or service where they are cashed out — producing an evidenced trail for that exchange and law enforcement.
On-chain tracing can follow funds to the exchange where they are cashed out; a timely, evidenced report to that exchange and the regulator is the realistic path. Recovery is never guaranteed but is materially easier the sooner tracing begins.
Crypto Scam recovery by country
Select your country for the local regulator, ombudsman and recovery routes: