As blockchain technology grows and the crypto market expands rapidly, cryptocurrencies like Bitcoin and Ethereum have gained massive public attention. However, with great opportunity comes risk. Various cryptocurrency scams have become more sophisticated and diverse. DJK LLP, a law firm specializing in financial fraud and cybersecurity, highlights the top five latest crypto fraud methods and provides legal advice to help investors avoid becoming victims.
1. Fake ICO (Initial Coin Offering) Scams
Scammers fabricate blockchain projects using flashy websites and buzzwords, promoting revolutionary “whitepapers” to lure investors into participating in fake ICOs. Once they collect enough money, the team disappears.
Common Signs:
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No working code or GitHub repository
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Team identities are fake or unverifiable
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Unrealistic return promises and time-limited offers
DJK LLP Tip:
Always verify open-source code, founder credentials, and whether third-party audit reports exist.
2. Insider-Run Fraudulent Exchanges
Some unregulated crypto exchanges appear legitimate but manipulate prices and control user funds from behind the scenes. After users deposit funds, the system crashes or locks access.
Common Signs:
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Unknown company registration or license
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Difficult withdrawal process and unresponsive support
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Account issues, login errors, or data anomalies
DJK LLP Tip:
Use exchanges regulated in countries like the U.S., Singapore, or EU jurisdictions.
3. Fake Celebrity Endorsements
Fraudsters impersonate celebrities or influencers (e.g., Elon Musk, Warren Buffett) to promote “exclusive coins” via hacked or fake social accounts.
Common Signs:
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Claims of “free airdrops” or “double your crypto instantly”
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Slightly altered usernames mimicking real accounts
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Comments flooded with fake praise
DJK LLP Tip:
Never make decisions based solely on social media posts. Any “send and get back” schemes are highly suspicious.
4. Crypto Mining Investment Scams
Scammers claim to manage mining machines or offer “managed” crypto mining services, promising daily profits. In reality, this is a Ponzi scheme.
Common Signs:
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Recycled or suspicious photos of mining farms
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Guaranteed returns or passive income promises
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No official contracts or payment receipts
DJK LLP Tip:
Only trust mining projects with legal infrastructure, electric contracts, and transparent management.
5. AI-Generated Deepfake Video/Audio Scams
Using AI, scammers create fake voices or faces of friends, bosses, or celebrities to pressure victims into quickly transferring crypto.
Common Signs:
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Robotic facial expressions or awkward movements in videos
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Voice sounds realistic but context is off
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Urgent calls demanding instant payment
DJK LLP Tip:
Always double-check identity when receiving suspicious calls or messages. Never transfer crypto without verification.
Legal Advice
1）Keep All Evidence: Save chat logs, wallet addresses, platform links, and screenshots.
2）Report Immediately: Contact local law enforcement and provide blockchain transaction data.
3）Seek Legal Help: DJK LLP has expert teams to assist in asset tracing, freezing, and cross-border prosecution.
4）Stay Informed: Follow regulatory announcements and scam alerts from trusted sources.
Final Words: Guard Your Wealth, Outsmart the Scams
Crypto investment offers exciting opportunities—but with them come high risks. DJK LLP（https://www.djkllp.com） urges all investors to prioritize security and legal compliance. In today’s fast-evolving digital finance landscape, having fraud awareness and risk control skills is essential to protect your crypto wealth.
