Crypto
Victim of a crypto scam? Here’s what to do next
Beware of various forms of cryptocurrency scams
Cryptocurrency scams can manifest in various forms, often preying on the lack of regulation and the complexity of blockchain transactions.
You must be aware of common tactics used in cryptocurrency scams. These include:
- Phishing scams: Attackers send fraudulent emails or messages that mimic legitimate cryptocurrency platforms. Victims may be tricked into providing sensitive information such as private keys or login credentials.
- Ponzi schemes: Promises of high returns with little to no risk lure investors into schemes that eventually collapse, leaving many with significant losses.
- Fake ICOs: Fraudulent projects present a compelling investment opportunity, only to disappear after collecting funds.
- Rug pulls: In decentralized finance (DeFi), developers of a project could suddenly withdraw all funds from a liquidity pool, leaving investors with worthless tokens. This malicious act is called a rug pull, and it typically occurs after a project has gained enough momentum and unsuspecting investors have bought into it.
- Social media impersonations: Cybercriminals impersonate reputable influencers or customer support accounts. They use social media to solicit investments or send links that compromise security. Always cross-check identities through official channels.
- AI-powered scams: AI-powered scams in the crypto space involve advanced tools like phishing bots, deepfakes and exploit bots, which can automatically create convincing fake messages or manipulate platforms to steal funds. These scams are increasingly sophisticated, making it harder for users to spot fraudulent activities and putting digital assets at greater risk.
Immediate steps: What to do after a crypto scam
If you suspect you have fallen victim to a crypto scam, taking prompt action is crucial.
Here’s a step-by-step guide on what to do after a crypto scam:
1. Secure your accounts:
- Change passwords and enable two-factor authentication (2FA) on your cryptocurrency accounts.
- Transfer the remaining funds to a secure wallet to minimize further risk.
2. Document the incident:
- Keep records of all communications, transaction IDs and any other relevant details. This documentation will be essential for recovery efforts and legal action against crypto scams, if possible.
3. Report the scam:
- Contact local law enforcement and financial regulatory bodies. Many countries have dedicated cybercrime units that can investigate such incidents.
- File a complaint with consumer protection agencies and report the scam on platforms like the Financial Conduct Authority (FCA) in the UK or the Internet Crime Complaint Center (IC3), a division of the FBI that handles internet-related crimes in the US. You can also report cryptocurrency fraud to Action Fraud in the UK, which will then escalate the case to the National Crime Agency (NCA), which is responsible for investigating major cybercrimes and financial fraud.
4. Seek professional guidance:
- Consult legal experts specializing in digital assets for legal action regarding crypto scams. They can help navigate the complex legal landscape and potentially assist in recovering lost funds.
- Engage cybersecurity professionals who can provide crypto fraud help and advice on strengthening your digital security.
5. Monitor and track transactions:
- Utilize blockchain explorers to trace the movement of your stolen assets. Although cryptocurrencies are designed for transparency, identifying the destination of funds can be challenging without professional assistance.
- Consider reaching out to companies specializing in blockchain analytics for a detailed investigation.
Did you know? Argentine President Javier Milei’s X post endorsing the LIBRA token briefly sent its market cap soaring to $4 billion — only for him to delete it hours later, triggering a crash that wiped out millions in investor funds.
How to report a cryptocurrency scam in the US
Reporting crypto scams in the US can be challenging because responsibility is spread across multiple agencies at the federal, state and local levels.
Before reporting any scam, keep all transaction records, screenshots, emails and any other communications related to the fraud. Determine if it was a phishing attack, fake investment or another form of fraud. This helps in categorizing the complaint accurately. The next steps in reporting the scam are as follows:
Federal reporting
- FBI’s Internet Crime Complaint Center (IC3): This is one of the primary platforms for reporting online financial crimes, including those involving cryptocurrencies. Although many victims report scams through IC3, feedback is often minimal, underscoring the need for a more responsive system.
- Additional Federal Agencies: Depending on the nature of the scam, you might also consider contacting regulators like the Securities and Exchange Commission (SEC) if the fraud involves investment scams.
State and local authorities
- Local law enforcement: File a report with your local police or cybercrime unit. They can sometimes offer immediate assistance or direct you to specialized resources.
- State regulators: Some states have dedicated offices for financial protection. For example, in California, authorities like the Department of Financial Protection and Innovation (DFPI) have been actively addressing emerging crypto scams, from fake mining schemes to fraudulent investment groups.
Given the fragmented crypto crime reporting system in the US, industry leaders have called for a streamlined, centralized reporting system that not only consolidates data from various agencies but also offers victims a way to track the status of their complaints. While this system is not yet in place, being aware of this need can help you set realistic expectations and encourage further advocacy.
Engage with specialized support
- Legal consultation: Many crypto scams are orchestrated from overseas, making cross-border cooperation essential. A lawyer specialized in cryptocurrency or cybercrime in your jurisdiction could help you navigate the legal system and work with the appropriate agencies.
- Blockchain analysis firms: Some companies offer forensic services to trace the movement of funds on the blockchain. However, ensure you thoroughly research these firms to avoid further scams.
Is it possible to recover crypto lost in scams?
It’s one of the toughest questions for anyone scammed in the crypto space: Can I get my lost crypto back? Unfortunately, the short answer is that recovery can be incredibly difficult, but it’s not impossible.
Crypto transactions, by nature, are irreversible. Once you send crypto to a scammer’s wallet, no central authority like a bank can reverse the transaction. However, there are still a few steps you can take to attempt recovery and minimize future risks.
First, report the scam by contacting local authorities, such as Action Fraud in the UK or the FBI’s IC3 in the US. While they may not be able to recover your funds directly, reporting the incident creates a record of the scam, which could help in more extensive investigations or lead to action against the scammers in the future.
Crypto exchanges and wallet providers may also be able to assist if the scam involves funds sent to or received by a platform they control. Contact their support team immediately. Although the likelihood of recovery from an exchange is slim, some platforms may freeze accounts or funds related to suspicious activities.
Use blockchain forensics services that specialize in tracing the flow of stolen cryptocurrency on the blockchain. They might help you track where your funds went, and sometimes, this information can be handed over to law enforcement to assist with investigations. However, if your funds were sent to a private wallet or mixed through services designed to obscure transactions, recovery becomes significantly more challenging.
While it may not always feel like there’s hope, acting quickly and understanding the complexities of crypto recovery can make a difference. Remember, the best recovery tactic is prevention; staying informed is your first defense.
Did you know? Elliptic, a blockchain analytics firm, traced funds stolen in the record-breaking $1.5 billion Bybit hack to the North Korean Lazarus Group, which laundered the assets through exchanges like eXch.
Preventative measures: Avoiding cryptocurrency scams
Preventing future scams is as critical as recovering from one. Avoiding cryptocurrency scams is all about staying informed and cautious.
Implement the following measures to reduce your risk:
- Do your homework: Before investing in any project or platform, take the time to research. Look into the team behind it, read the white paper and check out reviews from reputable sources. If you can’t find clear, verifiable information or something feels off, trust your instincts and steer clear.
- Stay updated on scam tactics: The tactics used by scammers are constantly evolving. Familiarize yourself with common scams like phishing, AI-powered or impersonation scams. Following crypto news and joining reputable online communities can keep you informed about the latest warning signs.
- Question “too-good-to-be-true” offers: If someone promises sky-high returns with little risk, it’s likely a red flag. In crypto, as in any investment, high rewards usually come with high risks. A legitimate opportunity won’t pressure you with unrealistic promises.
- Verify websites and emails: Scammers often create lookalike websites and send fake emails that mimic trusted services. Always double-check URLs and email addresses, and if something doesn’t match the official website or seems unusual, avoid clicking on any links.
- Secure your digital assets: Treat your crypto wallets like a personal safe. Use hardware wallets for long-term storage, enable 2FA on all accounts and never share your private keys or recovery phrases. Think of your private keys as the keys to your house — keep them secure and private.
- Take your time: Scammers love to create urgency with “limited-time offers” or “exclusive deals.” If you’re being rushed into a decision, pause and do your research. Legitimate opportunities will still be available after you’ve had time to verify the details.
- Diversify your investments: Never put all your money into one asset or project. Diversification helps manage risk and protects you if one investment turns out to be less secure than expected.
- Seek trusted opinions: If you’re unsure about an investment or an offer, ask for advice from knowledgeable friends or community members. Trusted crypto communities and forums can be great for getting second opinions — but always be cautious and cross-check the information.
By staying vigilant, questioning deals that seem too good to be true and taking simple security measures, you can significantly reduce the risk of falling victim to crypto scams. It’s all about being cautious and making informed decisions. Your future self will thank you!
The Delaware House of Representatives has passed a bill that would prohibit the operation of cryptocurrency ATMs across the state, citing growing concerns over fraud and consumer protection. The legislation, now headed to the state Senate for consideration, would require all existing crypto ATMs to be shut down and removed within 90 days of enactment.
What the Bill Proposes
House Bill 123, as reported by Decrypt, targets the proliferation of cryptocurrency kiosks that have become common in convenience stores, gas stations, and other retail locations. Lawmakers argue that these machines are increasingly used to facilitate scams, particularly targeting elderly and vulnerable residents who may not fully understand the technology. The bill would make it illegal to operate, maintain, or permit the installation of a cryptocurrency ATM anywhere in Delaware.
Why This Matters for Consumers
Cryptocurrency ATMs allow users to buy or sell digital currencies like Bitcoin using cash or debit cards. While legitimate users appreciate the convenience, regulators have flagged them as high-risk for money laundering and fraud. The Federal Trade Commission has reported a surge in scams where victims are directed to deposit cash into these machines under false pretenses. Delaware’s proposed ban reflects a broader state-level push to rein in unregulated crypto financial services.
Similar Actions in Other States
Delaware is not alone in taking a hard line. Indiana, Tennessee, and Minnesota have previously enacted comparable restrictions or outright bans on crypto ATMs. These measures often include licensing requirements, transaction limits, and mandatory disclosures. The trend signals a growing skepticism among state legislators about the consumer safety risks posed by unmonitored crypto kiosks.
What Happens Next
The bill now moves to the Delaware State Senate, where it will undergo committee review and potential amendments. If passed, Delaware would join a small but growing list of states with explicit bans. Industry advocates argue that such laws could stifle innovation and push transactions underground, while consumer protection groups praise the move as necessary to prevent financial harm.
Conclusion
Delaware’s legislative action highlights the ongoing tension between cryptocurrency adoption and consumer safety. As the bill advances, stakeholders on both sides will be watching closely. For now, the message from Dover is clear: protecting residents from crypto-related fraud is a priority that may outweigh the benefits of unregulated ATM access.
FAQs
Q1: What is a cryptocurrency ATM?
A cryptocurrency ATM is a kiosk that allows users to buy or sell digital currencies like Bitcoin using cash, debit cards, or other payment methods. Unlike traditional ATMs, they are not connected to a bank account.
Q2: Why does Delaware want to ban crypto ATMs?
Lawmakers cite a rise in fraud cases, especially among seniors, where scammers trick victims into depositing cash into these machines. The bill aims to eliminate this vector for financial exploitation.
Q3: What happens to existing crypto ATMs in Delaware if the bill becomes law?
Operators would have 90 days to shut down and remove all machines. Failure to comply could result in penalties. The timeline is designed to give businesses a reasonable window to adjust.
Key Takeaways
Word Play With a Warning
Robert Kiyosaki, the author of the best-selling personal finance book “Rich Dad Poor Dad,” is recasting a familiar piece of investing advice. In a post on X, he argued that many investors only believe they are protected, adding:
“De-Worse-ified means they think they are diversified, but they have all their diversified assets, such as gold, silver, Bitcoin, stocks, bonds, real estate, and oil, in one asset class.”
His point is that spreading money across many holdings does not help if those holdings all move the same way in a crisis. When a liquidity shock hits, correlations rise and supposedly diverse portfolios can fall in unison, leaving investors “de-worsified” rather than diversified.
The commentary is consistent with the stance Kiyosaki has pushed throughout 2026 as he recently named bitcoin among the safest investments for the year, grouping it with what he calls real assets. He has repeatedly listed gold, silver, oil, food, bitcoin, and ether as his preferred holdings, framing them as scarce stores of value that printed money cannot dilute.
He has paired that view with stark price calls, setting a target of $250,000 for BTC by year’s end alongside a longer-term goal of $1 million. At current levels, the move would require a gain of more than 230%. On the precious metals side of things, he recently suggested a possible $200-per-ounce silver level this year, calling the metal’s climb a signal of mounting financial stress.
Kiyosaki’s broader thesis is darker still, warning investors of a historic market crash that he ties to surging global debt and fragile private credit markets, urging followers to build income streams, learn trade skills, and accumulate hard assets before the storm.
Timing Is Everything
The “de-worsified” warning arrives at a tense moment for markets, especially as bitcoin posted its worst week since the 2022 collapse of Sam Bankman-Fried’s FTX exchange, sliding below $60,000 as record exchange-traded fund (ETF) outflows and risk-off sentiment gripped the sector.
That is exactly the kind of broad drawdown scenario (where bitcoin, equities, and other assets fall together) that Kiyosaki has used time and again to illustrate his point.
That said, he has become an increasingly polarizing voice within the broader economic landscape, with skeptics pointing out that his crash predictions are frequent and his price targets aggressive (and that he has issued similar warnings for years). Supporters argue his core message of owning scarce assets, avoiding hidden correlation, and preparing for volatility is a reasonable hedge against an era of heavy money printing and rising debt.
Whether or not his $250,000 bitcoin call lands, the distinction he is drawing is a real one, as true diversification really does depend on owning assets that behave differently (not simply owning many of them). In a market where everything from gold to crypto to stocks can move on the same macro headlines, that lesson may matter more than any single forecast.
North Carolina lawmakers on Tuesday advanced a bill to protect consumers from cryptocurrency kiosk fraud.
House Bill 920, which passed the House with a 115-to-0 vote, aims to regulate an industry that its author claims is unregulated in the state.
“It’s the wild, wild West,” Rep. Neal Jackson, R-Moore, said during a committee discussion on Tuesday. “There is no regulation whatsoever in North Carolina. That’s what we’re trying to do here.”
Lawmakers cited a growing amount of fraud as the reason for the bill. About $389 million in losses were reported last year through cryptocurrency ATMs, a 58% increase from 2024, according to the FBI. The majority of those impacted are 60-plus.
The bill now goes to the Senate for consideration. It seeks to:
- Require licenses for all kiosk operators under the Money Transmissions Act.
- Place operators under the supervision of the Commissioner of Banks.
- Require fraud warnings and transaction receipts for every transaction.
- Require compliance and consumer protection officers that are always available.
It also seeks to place limitations on transactions in an effort to reduce fraud, requiring a $2,000 daily limit for the first 30 days for new customers and a $5,000 daily limit for existing customers, who would qualify after 30 days.
While other states have service fees between 20% and 30%, Jackson suggests putting a cap at 14%.
State Rep. Tim Longest, D-Wake, expressed concern about having the kiosks at all in the state. He said the bill’s protections could be stronger.
“These machines can be the subject of fraud, basically facilitating fraud on seniors and other vulnerable individuals and in those cases,” Longest said. “… In crafting regulations, I think it’s important that we ensure consumers are adequately protected by those regulations and I do not believe that, under the language of the bill currently before you, those regulations are sufficient to protect consumers.”
Jackson pointed to this bill as an effort to regulate, not shut down, cryptocurrency kiosks in the state and said there are even more consumer protections in place.
David N. Tente, the executive director of the ATM Industry Association, said the bill — and others like it — is problematic because it requires operators to provide refunds to fraud victims in certain instances.
“In most cases, the cash in the ATM/kiosk does not belong to the operator, which means that returning any of it would be, technically, theft,” Tente said. “If you give someone cash for something, and you change your mind after they leave, you probably won’t get it back.”
He added: “We certainly feel sorry for those being scammed, but there are very simple things you can do to avoid it.”
Tente said these kinds of scams have existed for centuries, adding: “They are still here — just using different means of payment.”
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