Are you affected by crypto fraud? Most victims ask themselves: What should I do? Our clear answer is that you need to fight back. Immediate action must be taken, as your cryptocurrencies and bank account balance are at risk.

Crypto fraud is widespread and occurs in an international environment. The perpetrators have no geographical preferences and operate independently of location. They deliberately deceive investors, leading them to make deposits in crypto or euros. Often, they use well-known crypto exchanges to convert funds and cover their tracks.

Do you need help? Submit a free inquiry!

1. CryptoTracing offers a free initial assessment of your case.
2. Describe your case using the contact form and try to include as many key facts and details as possible.
3. We can trace the flow of funds based on transaction data on the blockchain and work closely with a specialized attorney.
4. In our response, we will outline which further actions are advisable and how we can continue to guide and support you.

In all cases of crypto fraud, one rule applies: Do not make any more deposits! Even if the fraudsters realize that their victim has caught on to the scam, they usually don’t back down. They present flimsy excuses or try to alarm the victims by faking emergencies. Do not engage with them, and do not respond. Contact us and rely on our assessment.

Crypto Fraud: How do I recognize if it’s a scam?

In fact, it can happen that users of legitimate brokers feel defrauded, even though no fraud has occurred in a legal sense. This usually happens when the broker blocks access because proof of funds is required. While this rather strict approach may give the impression of fraud, it is usually covered by the exchange's terms and conditions.

However, real fraudsters operate in a very similar way to legitimate brokers, making it difficult to immediately recognize the scam. A clear sign of fraud is the promise of astronomical returns, which are typically not offered by reputable brokers or exchanges. Another red flag is the persistent demand for further deposits via email or phone. Do not comply with these requests, as it will only result in further financial loss!

Is it possible to take legal action against crypto fraud to recover the money?

In principle, this question can be answered with a yes. However, it should be noted that it always depends on the specific circumstances of the individual case. Therefore, a general yes or no cannot be given. Instead, as a victim, you should focus on quickly organizing legal assistance.

We work with Dr. Maisch, who specializes in IT law, cybercrime, and cases of crypto fraud. Together with the expertise of CryptoTracing, he can help secure evidence, reconstruct the course of events, and initiate all necessary steps.

What should be done, and how should one take action?

Criminal proceedings must definitely be initiated against the perpetrators. The tool of choice is a well-crafted criminal complaint. It's important to ensure that the fraud is clearly identifiable for the authorities. In this regard, the reconstruction of blockchain transactions, along with chat messages or bank statements, can be highly beneficial.

Furthermore, it is crucial to also contact foreign law enforcement agencies, as the perpetrators are often based abroad. Important contacts include BaFin or the relevant regulatory authorities in other countries. Fraudsters often operate as part of organized schemes, which requires the intervention of authorities and may prevent harm to other investors. It is important to understand that time is especially valuable. Crime statistics repeatedly show that the sooner the police are involved, the higher the chances of catching the perpetrators.

How do the perpetrators gain the trust of victims in crypto fraud?

Victims need to realize that they are not dealing with amateurs, but with professional criminals. The perpetrators operate in an international environment and are highly organized. For instance, they hire advertising agencies to place ads and video messages on YouTube, X or Facebook. Since they also broadcast ads via Google , it’s possible that they even run ads for their scams on reputable websites.

A prominent example of this is the Höhle der Löwenscam, which caused massive damage through fake press articles. The latest trend involves AI-manipulated video messages. These videos are highly realistic, allowing fraudsters to misuse the good names of celebrities, politicians, and businesspeople. One example of this is the Brad Garlinghouse scam.

Die Täter manipulieren ihre Opfer

The approach described above only concerns the initial contact. Once the victims take the bait, they are often manipulated further by the perpetrators. Very often, fraudsters present themselves as personal account managers This behavior is particularly common in broker fraud and is aimed at systematically manipulating the victims. The so-called account manager has only one goal: to persuade the victim to make more and increasingly larger deposits.

Because many people find it difficult to say no, and the perpetrators build a personal connection that leads to a sense of trust, this scheme is particularly devastating.

On the fake broker platforms, profits are faked, and the friendly account manager further lulls the victims into a false sense of security. Unfortunately, many victims only realize the damage when it is far too late.

Crypto fraud is exposed when the victim encounters problems.

Because everything seems to be going as expected, many victims remain largely inactive. Most only become suspicious when they encounter withdrawal issues. Either agreed payments fail to be made, or it becomes impossible to withdraw cryptocurrencies from the platform.

This is accompanied by excuses and delay tactics from the supposed customer service. It's important to be cautious here, as fraudsters often demand additional deposits. They frequently pretend that taxes or withdrawal fees must be paid first before any funds can be released.

Our tip:

Honest brokers process withdrawal requests without further comments and pay out as requested by the customer. Fraudsters, on the other hand, do not. Instead, they try to extract as much as possible when a withdrawal is requested, knowing that the scam is about to be exposed. It’s important to keep in mind:

• Do not make any further deposits.
• When receiving a payment, always check if the sender matches the company. Fraudsters often misuse third-party accounts.
• Under no circumstances should you transfer received funds to unknown accounts.
• Contact CryptoTracing to receive assistance and advice.

Reputable crypto exchanges are being misused.

Crypto exchanges like Binance, Kraken, or Bitvavo also become targets for fraudsters. They either mimic the websites of these exchanges, exploiting their reputable names, or use the platforms as a springboard for their schemes.

We are unfortunately all too familiar with the fraudsters' methods from our practice. If you're interested in further information on specific exchanges, we recommend studying our related articles:

• Coinbase Scam
• Kraken Betrug
• Binance fraud

In addition to these three well-known exchanges, many other legitimate cryptocurrency exchange operators are also affected. Similar schemes can be observed on platforms like Crypto.com, Bitpanda, and many others.

Stolen assets can be tracked on the blockchain.

The blockchain offers no hiding place for criminals—quite the opposite! Most cryptocurrencies are transparent when it comes to participants' transactions. While it's not immediately clear who owns a particular address, users enjoy pseudo-anonymity. However, victims often know the fraudsters' addresses, and exchange addresses are even publicly available.

Therefore, digital assets like Bitcoin, Ethereum, or BNB can indeed be tracked. With blockchain analysis, it is possible to trace exactly where the assets have ended up. This can often lead to important insights and, in some cases, directly identify the perpetrator. For example, this happens when the perpetrator transfers the funds to an exchange where they have identified themselves using an ID.

Therefore, it is extremely important for fraud victims to keep their transaction data safe. CryptoTracing can help you find and secure the right data. Additionally, we analyze the traces and document them for you.

Immediate Measures to Take

Even if you seek help from CryptoTracing, there are some tasks you must handle independently. This serves to protect you from further crimes and to aid in solving the offenses.

• Secure your bank accounts and cryptocurrency exchange accounts. Strong passwords and two-factor authentication (2FA) should always be used.
• Secure wallet files and keep them for analysis. It's best to create a backup on a separate USB stick.
• Install antivirus software and scan your PC.
• Save chat messages, emails, and phone numbers of the fraudsters. Every detail is important to prove the fraud.
• Cut off contact with the fraudsters and stop logging into the platform.
• Inform your bank and, if applicable, the cryptocurrency exchange about the fraud.
• Contact CryptoTracing and describe your case to us.

In addition there is the risk of identity theft, as victims are often required to verify their identity with the fake exchanges. This is intended to reinforce the impression that it is a legitimate provider conducting a so-called KYC (Know Your Customer) procedure with new clients. Now, further crimes may be imminent, as the perpetrators could misuse the personal information in the future. Together with our attorney, we can show you how to protect yourself effectively.

CryptoTracing offers a free initial assessment of your case.

The first step to recovering your money is initiating targeted investigations. CryptoTracing specializes in using blockchain forensics to trace the perpetrators, establish contact with law enforcement agencies and exchanges, and provide legal assistance through an attorney. We work closely with Dr. Maisch, who has extensive expertise in cases of crypto fraud. He can advise you on all legal matters and take legal action if needed.

Through the measures taken, it becomes difficult for the perpetrators to hide behind the supposed anonymity of the internet and cryptocurrencies. Every fraudster leaves digital traces, and in a metaphorical sense, the blockchain never forgets. This allows us to create a foundation to identify the recipients of the funds and, if necessary, legally demand the return of the stolen cryptocurrencies.

Feel free to describe your individual case to us via our contact form. We will get in touch with you promptly and provide an initial assessment, explaining what steps can be taken next.

FAQ on Crypto Fraud