Codex/Cryptocurrency Scams/Cryptocurrency Investment Scam
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Cryptocurrency Scams

Cryptocurrency Investment Scam

Critical Risk

Fake crypto trading platforms, signal groups, and investment opportunities that steal your cryptocurrency deposits.

Reported Losses

$2.5 billion in crypto investment fraud (FTC 2024)

Primary Targets

Crypto curious investors, new crypto users

Last Updated

2026-01-06

Also Known As

Bitcoin Scam

How Scammers Contact You

Social mediaDating appsTelegramWhatsApp

How This Scam Works

Scammers create fake cryptocurrency investment opportunities:

**Fake Trading Platforms:** - Professional-looking website - Shows fake gains on your "investment" - Allows small withdrawals initially to build trust - Blocks large withdrawals or demands fees/taxes

**Signal Groups:** - Telegram/Discord groups promising profitable trading signals - Run by fake "expert traders" - Early signals work to build trust - Eventually pump-and-dump or rug pull

**Celebrity Endorsements:** - Fake news articles about celebrity crypto investments - Deepfake videos of Elon Musk, Jeff Bezos, etc. - Links to fraudulent investment platforms

Red Flags to Watch For

  • ⚠️Guaranteed returns or "risk-free" investments
  • ⚠️Platform not on official app stores
  • ⚠️Can't find regulatory registration or company info
  • ⚠️High pressure to invest more
  • ⚠️Must pay fees or taxes to withdraw
  • ⚠️Celebrity endorsements (usually fake)
  • ⚠️Contacted through unsolicited message
  • ⚠️Only accepts crypto deposits, no fiat

📝 Real Victim Account

"An Instagram ad showed how to turn $500 into $5,000 trading Bitcoin. The platform looked legitimate and showed my balance growing. When I tried to withdraw my $10,000, they said I needed to pay 15% taxes first. I paid $1,500. Then they said I needed more fees. I lost my original investment plus the fees — $6,500 total."

CFTC Consumer Alert

How to Protect Yourself

  1. 1Use only well-known, regulated exchanges (Coinbase, Kraken, etc.)
  2. 2Never invest through links sent in messages
  3. 3Research any platform — search "[name] + scam"
  4. 4Don't trust celebrity endorsements without verification
  5. 5Never pay fees to withdraw your own money
  6. 6Be skeptical of guaranteed returns
  7. 7Keep crypto in self-custody wallets when possible

🆘 What to Do If You're a Victim

  1. 1Stop sending money/crypto immediately
  2. 2Document everything — screenshots, transactions, communications
  3. 3Report to FBI IC3 at ic3.gov
  4. 4Report to FTC at ReportFraud.ftc.gov
  5. 5Report to CFTC if futures/options involved
  6. 6Contact the blockchain's official support if applicable
  7. 7Be wary of "recovery services" — many are scams targeting victims

🔗 Related Scams

📚 Sources & References

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