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:
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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
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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.
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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.
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!
STARKVILLE – Potentially higher utility bills and sound pollution topped the list of concerns raised by six residents who addressed the board of aldermen Tuesday about a cryptocurrency mining facility proposed for Industrial Park Road.
Vice Mayor Roy Perkins, who represents Ward 6, said he has fielded similar concerns from constituents following the board’s June 12 work session, during which members heard a presentation about the potential project.
Roy A. Perkins
“I know these things need to have full accountability, full transparency and different things,” Perkins said. “… Well you can rest assured the vice mayor is going to be on assignment. I’m going to do my part. I’m not going to do anything that’s going to negatively impact this community.”
The proposed facility would be a specialized type of data center designed to mine cryptocurrency, a digital currency that operates independently of government-backed financial systems. It is stored in digital wallets and fluctuates in value.
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Mining facilities use specialized computers that draw large energy loads to secure the digital transactions that take place. The center proposed in Starkville would be much smaller than “hyperscale data centers” that store and process data for large tech companies.
Utility usage topped the concerns of most residents with Pam Jones, the first to speak, set the tone.
“I understand that this is on a smaller scale than the hyper-scale facilities, and I just wanted to be sure that we had ordinances in place that will count the noise, especially at night and that there will be water and power management,” Jones said.
Other residents took issue with what they see as a lack of transparency around the proposed project.
“I was quite disappointed to learn (the mining facility) was not an agenda item today,” said Eadie Keenan, a Ward 7 resident. “… Quite frankly, I have more questions than can fit in three minutes.”
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Tiffany Womack, another Starkville resident, echoed Kennan’s concerns, adding utility usage and market volatility to her own list of issues.
“If (the center was) to go bankrupt or something like that, would that possibly fall back on the responsibility of Starkville citizens?” Womack asked.
Mayor Lynn Spruill did not answer each question individually, instead encouraging those with questions to watch the June 12 presentation. Due to the project’s early stage, she noted the board does not yet know answers to all the questions raised during Tuesday’s meeting.
Lynn Spruill
“I brought (the center) to the board as an opportunity for us to begin that process of learning so we are nowhere near making a decision,” Spruill said. “Which is why it isn’t on the agenda and won’t be on the agenda for some time.”
Spruill said the proposed center is currently going through the staff vetting process. Once the process is complete, staff will make a recommendation to the board on whether to pursue the center. At that time, Spruill expects to be able to answer residents’ remaining questions.
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Spruill said transparency is important to her and the board while going through the process of vetting the mining center.
“Nothing is being hidden. It’s all out there for everybody to see, and we’ll make decisions based on facts not on Facebook craziness,” Spruill said. “… We want facts, and we want all decisions to be made with facts. And so hopefully that will put some of your concerns (to rest), at least to the extent that this is nowhere near something that will be on the agenda.”
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Quality, in-depth journalism is essential to a healthy community. The Dispatch brings you the most complete reporting and insightful commentary in the Golden Triangle, but we need your help to continue our efforts. In the past week, our reporters have posted 24 articles to cdispatch.com. Please consider subscribing to our website for only $2.30 per week to help support local journalism and our community.
Robert Kiyosaki said a manuscript shared by Jim Rickards changed how he views global finance.
Kiyosaki warned commonly held financial assets could face pressure as financial rules shift across markets.
His claims remain warnings, with evidence and future market developments still central.
Why Did One Manuscript Change Robert Kiyosaki’s View?
Robert Kiyosaki, the author of the best-selling personal finance book Rich Dad Poor Dad, said an advance manuscript of “The Entropy Trap” shared by Jim Rickards prompted him to rethink how he views global finance. Rickards is an economist, lawyer, and financial commentator known for writing about currencies, debt, and systemic market risk. Kiyosaki said the early reading changed his perspective on where the financial system may be headed.
The reaction was framed around a warning about financial change. The book, written by Mickey M. Maini, “blew my mind and opened my eyes to what & why global financial change is coming,” Kiyosaki described. His comments focused on what he described as a shift in the rules behind wealth, assets, and trust.
The central claim is that wealth could move away from people relying on traditional financial assumptions. Kiyosaki asserted:
“The informed will be tomorrow’s ULTRA RICH. Todays uniformed operating by the old rules of money… will become the new poor.”
The Warning Behind the Claim
The warning centers on assets that depend on trust, including U.S. bonds, exchange-traded funds (ETFs), and mutual funds. Kiyosaki framed those instruments as vulnerable under the financial shift he says is coming, placing commonly held investment products at the center of the risk.
That claim is severe, but he presented it as a warning rather than a proven outcome. He also pointed to large bondholders, including Japan, saying they have already started dumping U.S. bonds. He did not provide supporting data in the statement.
The acclaimed author shared:
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“Message from book… ‘All assets that require trust, assets that most people have… such as U.S. bonds, ETFs, mutual funds will be flushed down toilets, all over the world.’”
The broader conflict is whether traditional financial assets remain reliable under the conditions Kiyosaki described. His framing divides investors between those preparing for a changed financial system and those still operating under assumptions he says may no longer hold.
What Still Needs to Be Proven
A planned August study session could clarify the warning Kiyosaki described. He said his study team would examine the message and that Rickards may join, though the evidence behind the claims has not yet been laid out.
For now, the warning rests on Kiyosaki’s account of a manuscript that changed his view. He urged readers to prepare, writing:
“I want you to be one of the world’s new rich.”
What remains unknown is whether market data, policy moves, or investor behavior will confirm the risk he described.
His recent commentary has focused on what he describes as fragility in the global monetary system, particularly around the U.S. dollar. He has pointed to rising debt, central bank policies, and inflation as risks that could trigger a sharp market downturn.
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Alongside those concerns, he has repeatedly highlighted bitcoin, gold, and silver as alternative stores of value. In his view, those assets may help reduce exposure to traditional financial instruments during periods of currency weakness and market turbulence.
Strategy Is No Longer Just Going to “Inoculate the Market,” Selling Crypto May Be Much More Common. Here’s What That Could Mean for the Stock | The Motley Fool
When Strategy (MSTR 0.69%) sold a modest amount of Bitcoin earlier this year, it was a noteworthy development given that the company’s business has centered around buying up as much of the cryptocurrency as it can, and vowing to never sell. And it often boasts of being the largest corporate holder of the digital currency.
The company brushed off the sale of 32 Bitcoins, with management saying it simply wanted to “inoculate the market.” Well, now it appears that Strategy is doing much more than just that, and there could be more significant cryptocurrency sales in the future.
Image source: Getty Images.
Strategy unveils a Bitcoin monetization program
On June 29, Strategy released a framework going forward that it says will “enhance liquidity, preserve long-term Bitcoin exposure, and support long-term value creation for shareholders.” Among the notable components is its Bitcoin monetization program.
Within that program, the company says it may sell some of its cryptocurrency holdings for multiple reasons, including to fund a USD reserve, fund dividends or interest expense, or to fund repurchases of digital credit securities or common stock.
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While the company says it remains committed to Bitcoin for the long term and it’s the company’s “primary treasury reserve asset,” it’s a significant change of course for Strategy, which was previously heavily against ever selling the digital asset.
Today’s Change
(-0.69%) $-0.69
Current Price
$100.08
Key Data Points
Market Cap
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$35BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.Market cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.
Day’s Range
$96.97 – $102.19
52wk Range
$81.81 – $457.22
Volume
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248.6K
Avg Vol
21.3M
Gross Margin
68.11%
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The stock is as risky and volatile as ever
Whether or not Strategy buys or sells Bitcoin doesn’t change the fact that this is a highly risky and speculative stock to own. While crypto fans may be disappointed in the company’s change in strategy, selling Bitcoin will likely not be enough to make the business any better or worse as an investment.
In just the past 12 months, the stock has plummeted a whopping 75% as volatility in digital assets has drastically weighed on its earnings, with the company incurring $12.8 billion in losses over the trailing 12 months, on revenue of $490 million.
That’s not likely to change significantly, even if Strategy offloads some of its crypto holdings, because with such a large exposure to Bitcoin, how the cryptocurrency performs will inevitably impact the company’s bottom line in a big way. This year, the leading cryptocurrency is down 28% as investor excitement around it has largely cooled off, which has proven disastrous for Strategy’s stock as well. And at this stage, there’s little reason to anticipate a recovery anytime soon.
