Cryptocurrency Scam Assistance

If you are a victim of a cryptocurrency scam, contact us immediately! The FTXRecovery.com team can help you navigate the complexities of recovering from fraud.

Understanding Cryptocurrency Investment Fraud

Feeling confused about being scammed by an investment platform with cryptocurrencies like Bitcoin, Ether (related to Ethereum), or USDT? You are not alone. Before using or investing in cryptocurrency, understand how it differs from cash and other payment methods, and how to identify cryptocurrency scams or detect potentially compromised crypto accounts.

Knowledge About Cryptocurrency Investment Scams

• Being scammed while paying with cryptocurrency?
• How to avoid cryptocurrency scams
• How to report cryptocurrency scams

About Cryptocurrency

Cryptocurrency is a digital currency that typically only exists electronically. You usually use your phone, computer, or a cryptocurrency ATM to buy cryptocurrency. Bitcoin and Ether are well-known cryptocurrencies, but many different cryptocurrencies exist, and new ones are continually created.

How Do People Use Cryptocurrency?

People use cryptocurrency for various reasons—fast payments, avoiding transaction fees from traditional banks, or because it provides some level of anonymity. Others hold cryptocurrency as an investment, hoping its value will increase.

How Do You Obtain Cryptocurrency?

You can buy cryptocurrency through exchanges, apps, websites, or cryptocurrency ATMs. Some people earn cryptocurrency through a complex process called "mining," which requires advanced computer equipment to solve highly complex mathematical problems.

Where and How Do You Store Cryptocurrency?

Cryptocurrency is stored in digital wallets, which can be online, on your computer, or on an external hard drive. Digital wallets have a wallet address, usually a long string of numbers and letters. If something goes wrong with your wallet or your cryptocurrency funds—such as your online exchange going out of business, sending cryptocurrency to the wrong person, losing the password to your digital wallet, or your digital wallet being stolen or compromised—you may find that no one can step in to help you recover your funds.

How Does Cryptocurrency Differ from Dollars?

Because cryptocurrency only exists online, there are significant differences between cryptocurrency and traditional currency (like dollars).

• Cryptocurrency accounts are not government-backed. The cryptocurrency in your account is not insured by the government like dollars deposited in an FDIC-insured bank account. If something goes wrong with your account or cryptocurrency funds—such as the company providing your wallet going out of business or being hacked—the government does not have to step in and help you get your money back.
• The value of cryptocurrency is constantly changing. The value of a cryptocurrency can change rapidly, even by the hour. And the amount of change can be significant. It depends on many factors, including supply and demand. Cryptocurrency tends to be more volatile than more traditional investments such as stocks and bonds. An investment that is worth thousands of dollars today might only be worth hundreds tomorrow. And if the value goes down, there is no guarantee it will rise again.

Paying with Cryptocurrency?

Using cryptocurrency to pay is different from using credit cards or other traditional payment methods in several important ways.

• Cryptocurrency payments do not come with legal protections. Credit and debit cards have legal protections if something goes wrong. For example, if you need to dispute a purchase, your credit card company has a process to help you get your money back. Cryptocurrency typically does not have such protections.
• Cryptocurrency payments are usually irreversible. Once you pay with cryptocurrency, you can only get your money back if the person you paid sends it back. This is where hiring a professional blockchain law team for intrusion recovery is a viable option—they can trace and reverse some blockchain transactions.
• Some information about your transactions will likely be public. People talk about cryptocurrency transactions being anonymous. But the truth is not that simple. Cryptocurrency transactions are usually recorded on a public ledger called a "blockchain." This is a public list of every cryptocurrency transaction, including payment and receiving wallet addresses. Sometimes, transaction and wallet information can be used to identify the people involved in specific transactions. When you buy something from a seller that collects other information about you (such as a shipping address), that information can be used to identify you later on.

How to Avoid Cryptocurrency Scams

Scammers are always finding new ways to steal your money using cryptocurrency. To avoid crypto scams, here are some things to know.

• Only scammers demand payment in cryptocurrency. Legitimate businesses will not ask you to send cryptocurrency, though some may accept it. If someone demands you pay in cryptocurrency, they are likely a scammer.
• Only scammers will guarantee profits or big returns. Do not trust people who promise you can quickly and easily make money in the crypto markets.
• Scammers will load your social media feeds with fake testimonials. They might say a famous person supports a cryptocurrency investment, or that your friends endorse it. They might hack social media accounts or post online, pretending to be someone you trust. This is called "phishing." Beware of these scams and report them.

How to Report Cryptocurrency Scams

Report fraud and other suspicious activity involving cryptocurrency to the following entities:

• FTC at ReportFraud.ftc.gov
• Commodity Futures Trading Commission (CFTC) at CFTC.gov/complaint
• Securities and Exchange Commission (SEC) at sec.gov/tcr
• Contact the platform or exchange you used to send the money

If you are a victim of a cryptocurrency scam, do not lose hope. The team at FTXRecovery.com is here to assist you in these challenging times.