Fake Crypto Exchanges and Trading Platforms
A professional-looking trading platform shows your balance growing fast, but withdrawals never work. How fake crypto exchanges operate and how to check a platform before depositing.
The website looks like a real exchange: live charts, order books, a dashboard with your balance. You deposit, trade on advice from a "mentor", and watch your profits climb. When you try to withdraw, something always goes wrong.
How fake platforms work
- You are introduced by a new online friend, a chat group or an ad. See online friends and investment platforms.
- You deposit crypto or cash, often by buying crypto elsewhere and sending it.
- The dashboard shows fast gains, which are just numbers on a screen.
- A small withdrawal may work, to build trust.
- Large withdrawals need fees, taxes or "verification deposits". See withdrawal fee scams.
Warning signs
- You found it through a stranger, not independent research.
- It is not on your regulator's register, or appears on a warning list.
- The web address is new or slightly different from a well-known exchange. See lookalike domains.
- Customer support only works through chat apps.
- Returns are far above anything realistic. See "guaranteed returns".
The test that matters is withdrawal. If you cannot withdraw your own money without paying first, it is not your money on that screen.
Related: AI crypto trading scams. For more, see investment and crypto scams.
Frequently asked questions
How can a fake platform show real-looking prices?
It can copy live price feeds from real markets. Your balance, however, is just a number the scammers control.
How do I check a crypto platform?
Check registration with financial regulators where you live, search for warnings, and be wary of platforms introduced by strangers or chat groups.
I made a small withdrawal successfully. Is it real?
Allowing a small withdrawal is a common trust-building step before larger deposits.
Sources
- What To Know About Cryptocurrency and Scams, US Federal Trade Commission
- Learn & Protect, US Commodity Futures Trading Commission
- ScamSmart, UK Financial Conduct Authority
