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Lesson 24 of 25 · 6 min read

Crypto scam red flags: 12 warning signs

12 crypto scam red flags, from guaranteed returns to withdrawal fees, each tied to a real case like FTX or OneCoin – plus a 60-second check before you send.

On this page

In this lesson

  • get a checklist of 12 warning signs that showed up again and again in the cases of this course
  • see which famous collapse or scam each sign comes from
  • learn a 60-second check to do before you send any money or crypto

In short: almost every crypto scam in this course showed the same handful of warning signs long before it collapsed – guaranteed or daily returns, pressure to hurry, rewards for recruiting friends, fees to withdraw your own money, a platform no regulator has heard of, and a stranger who started the conversation. One red flag is a reason to slow down. Two or more mean: do not send anything.

Scammers change the costume every year – Ponzi scheme, "AI trading bot", memecoin, romance – but the plot stays the same. It is like a horror film where the villain keeps the same mask and just changes the hat.

AMAZING OPPORTUNITY200 % GUARANTEEDIgnore the decorations!
Scams rarely hide their red flags – they just hope you will take them for decorations.

What are the warning signs of a crypto scam?#

  1. Guaranteed returns. Nobody can guarantee a profit in a market that can fall 50 % in a month – Celsius advertised high, safe-looking yields until it froze withdrawals in 2022 (Celsius and crypto lenders).
  2. A fixed daily or monthly percentage. Steady "1 % a day" is not investing, it is arithmetic paid for by newer depositors – exactly how BitConnect worked.
  3. Pressure to act now. Countdowns, "last spots", "the price launches in an hour" – the hype around the Squid Game token and countless pump & dumps lived on minutes, not on facts.
  4. Rewards for recruiting friends. If you earn mainly by bringing in other people, the people are the product – OneCoin paid commissions through levels of recruiters.
  5. You cannot withdraw, or you must pay to withdraw. A "tax", an "unlock fee" or a "verification deposit" before you get your own money is the classic ending of pig butchering and fake exchanges.
  6. The platform is not in any regulator's register. In the EU, crypto providers need a MiCA licence; a platform that no regulator lists (and maybe appears on a warning list) is not an exchange, it is a website with a balance counter.
  7. A stranger started the conversation. A "wrong number" text, a friendly match on a dating app, a helpful investor in a Telegram group – in pig butchering, the friendship is the scam.
  8. A celebrity endorses it. Famous faces in ads are often deepfakes or paid promoters; even real celebrities promoted FTX, and that did not make its books any better.
  9. "Send crypto to receive more back." No one doubles your coins. In July 2020 hackers took over famous Twitter accounts and used exactly this line in a fake giveaway.
  10. Someone wants remote access to your device. "Support" that asks you to install AnyDesk or a similar app, or to share your screen, is after your wallet, not your problem.
  11. The platform's own token holds everything up. FTX leaned on its FTT token, Terra on LUNA, Celsius on CEL – when the home-made token fell, so did the house (FTX collapse, Terra/Luna crash).
  12. Secrecy and no independent audit. OneCoin never had a real public blockchain; at QuadrigaCX, according to Ontario's securities regulator, the founder alone controlled the customers' money. "Trust us" is not a balance sheet.

A good scam rarely shows all twelve. One or two are enough to slow down; a combination of three like "stranger + guaranteed returns + fee to withdraw" is practically a signed confession.

The 60-second check before you send anything#

Do this every time someone asks you to send money or crypto – even when you feel sure:

  1. Who contacted whom? If they found you, assume a scam until proven otherwise.
  2. Is the platform registered? Look it up yourself (not through their link) in the regulator's register – in the EU the ESMA register of MiCA providers, in Czechia the ČNB lists, in Spain the CNMV, in the US the SEC and FINRA – and check the regulator's warning lists.
  3. Search "name + scam" or "name + review". Look for complaints on independent sites, not testimonials on their page.
  4. Does it promise a fixed return or require a fee to withdraw? Then stop. That is the whole check.
  5. Would I be fine telling a friend about it right now? If you feel you should keep it secret, that is the scammer's voice, not yours. Tell the friend.

If anything fails, close the chat. Waiting a day costs you nothing – a crypto transaction cannot be reversed.

A small successful withdrawal proves nothing

Many scams let you withdraw a small amount first so you trust them with more. Ponzi schemes pay early investors with newer investors' money, and fake platforms show huge profits that do not exist. Judge a platform by who regulates it and how it makes money, not by the first payout or the number on the screen.

Common myths#

  • "It has a professional website and an app, so it is real." A convincing site and app cost scammers a few hundred dollars. FTX had a beautiful app too.
  • "My friend made money with it." Early members of Ponzi schemes really do get paid – with the money of those who come later.
  • "It is on a blockchain, so it is transparent." Only if there is a real blockchain you can check and an independent audit of the reserves.

Summary

  • Guaranteed or daily returns, pressure, recruiting and fees to withdraw are the loudest red flags.
  • Unknown platforms, strangers who contact you, celebrity endorsements and "send to receive" offers come next.
  • A home-made token as the backbone and no independent audit were behind FTX, Terra and OneCoin.
  • Before sending anything, run the 60-second check – and when in doubt, do not send.

Sources#