Fraud Recovery · Fake Exchange
Trace & Recover

Fake exchange or OTC
scam?

You deposited crypto to what appeared to be a legitimate exchange or OTC broker — professional-looking website, customer support, even a mobile app. But when you tried to withdraw, the platform demanded fees, went unresponsive, or disappeared entirely. The exchange was fake, but the blockchain transactions are real — and traceable. We follow the money through the blockchain, identify where it landed, and pursue recovery through legal channels. Many fake exchange operators eventually move funds to legitimate exchanges where they can be frozen.

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Fake Exchange Scams

How fake exchanges work

The fake exchange playbook: Scammers create professional-looking exchange websites — sometimes clones of real exchanges (Binance, Coinbase, Kraken) with slightly different URLs, sometimes entirely fabricated platforms with original branding. They may have functional-looking order books, charts, and even customer support. Some go as far as creating mobile apps distributed outside official app stores.

How you end up there: Social media ads promising exclusive trading features, search engine ads for popular exchange names, recommendations from online "friends" or "investment advisors" (often part of pig butchering operations), or Telegram/Discord groups promoting "the next big exchange."

The withdrawal trap: The fake exchange lets you deposit freely and may even show "profits" growing. When you try to withdraw, they deploy escalating demands: "withdrawal fees," "tax clearance deposits," "insurance premiums," "anti-money laundering bonds." Each payment goes directly to the scammers. The exchange never intended to let you withdraw.

OTC broker scams: Similar pattern but through a personal "broker" — someone who offers to buy/sell crypto at favorable rates, escrow services that don't actually escrow, or P2P traders who disappear after receiving payment.

Recovery approach: (1) Trace your deposits on-chain — every transaction is recorded, even to a fake platform. (2) Follow the funds through the scammers' wallet network. (3) Identify when funds hit legitimate exchanges (where they can be frozen). (4) OSINT investigation on the fake platform — domain registration, hosting providers, social media footprints. (5) Legal action — court orders to freeze funds, compel exchange disclosure of scammer identity, and recover assets.

How it works

How fake exchange and OTC scams work

  • Fake exchange websites: Professional-looking websites that mimic real exchanges or present themselves as new exchanges. Users create accounts, deposit crypto, and see fake trading interfaces. When they try to withdraw, they're told they need to pay 'verification fees,' 'withdrawal fees,' or 'taxes' first.
  • OTC desk scams: Fake over-the-counter trading desks that offer to buy large crypto holdings at premium prices. The victim sends crypto to the 'OTC desk,' which simply steals it. The fake OTC desk may have a professional website, LinkedIn presence, and even fake regulatory registrations.
  • Referral bonus scams: Fake exchanges offer sign-up bonuses or referral rewards. Users deposit crypto to 'activate' their account and receive the bonus. The bonus is fake, and the deposit is stolen.
  • Airdrop scams: Fake airdrops require users to connect their wallets or send a small amount of crypto to verify their address. The connection grants the attacker access to the wallet, or the 'verification' transaction drains the wallet.
  • Verification fee scams: After a user deposits crypto on a fake exchange, the platform demands 'KYC verification fees,' 'AML compliance fees,' or 'withdrawal processing fees' before allowing withdrawal. Each fee payment is stolen, and withdrawal is never enabled.
Immediate response

What to do after discovering a fake exchange

Fake exchange scams are designed to extract maximum funds before the victim realizes the platform is fraudulent. Immediate steps: (1) Stop sending any funds to the platform — no 'fees,' 'taxes,' or 'verification payments.' These are all part of the scam. (2) Document everything — the platform URL, registration details, chat logs, transaction records, and wallet addresses you sent funds to. (3) Contact us — we trace the stolen funds through blockchain analytics. If funds reached a legitimate exchange, we can request freezing. (4) File a police report and report to financial regulators. (5) Check if the exchange is listed on any scam-warning databases (CoinMarketCap's unverified list, BitcoinAbuse, Chainabuse). (6) Report the website to hosting providers and domain registrars for takedown. (7) Beware of recovery scams — anyone offering to recover your funds for an upfront fee is almost certainly a secondary scammer. A legitimate recovery process involves legal proceedings, not guaranteed upfront-fee recovery.

FAQ

Fake exchange recovery FAQ

The exchange is still online — does that mean it's real?

Not necessarily. Many fake exchanges stay online for months or years — they continue accepting new deposits while refusing withdrawals. An operational website doesn't indicate legitimacy. Red flags: no verifiable regulatory registration, withdrawal demands for "fees" you didn't agree to at deposit, support that responds only with fee demands, no presence on major crypto data sites (CoinGecko, CoinMarketCap).

They're asking me to pay a "withdrawal fee" — should I?

NO. This is the scam within the scam. Legitimate exchanges deduct withdrawal fees from the withdrawal amount — they never require separate upfront payments. "Withdrawal fees," "tax clearance," "insurance deposits," and "AML bonds" are all tactics to extract more money. Every payment goes to the scammers. Do not send any more funds. Contact us instead.

Can funds sent to a fake exchange be traced?

Yes — every crypto transaction is recorded on the blockchain permanently. Even though the exchange is fake, your deposit went to a real blockchain address controlled by the scammers. We trace where they moved the funds — through their wallet network to legitimate exchanges where they cash out. When funds reach a real exchange, they can be frozen through compliance requests and court orders.

What if your real exchange account was also frozen? Fake exchange victims who sent funds from a real exchange may find that account flagged. Our crypto account unlock practice can restore access to your legitimate funds. Before engaging any recovery service, read our recovery scam warning — fake recovery services target scam victims.

Related resources

Related resources

Crypto account unlock

If your exchange account was frozen after the fraud, we unfreeze it in parallel with the recovery.

Complex cases practice

Unusual fraud scenarios — inherited wallets with stolen funds, shared accounts, cross-jurisdictional theft.

Recovery scam warning

After losing crypto, fake 'recovery services' target victims. Read this before paying anyone.

Scam database

Search known scam addresses, fake exchanges, and phishing domains. Check before you send.

Crypto scam recovery guide

Tracing, legal options, timelines, and what to expect when recovering stolen crypto.

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Swiss lawyersBlockchain forensicsCourt orders