Investment & Crypto
Crypto & Digital-Asset Fraud
Fraud built on cryptocurrency and other digital assets: fake exchanges and tokens, rug pulls, wallet-draining 'approvals,' and investment platforms that show fictional returns until the victim tries to withdraw.
01 — How it works
- 01
Attract
Advertise a platform, token, or 'sure' trading system.
- 02
Onboard
Guide the victim through buying and depositing crypto.
- 03
Display
Show paper profits and allow small withdrawals.
- 04
Block
Freeze the account and demand fees or vanish.
02 — Lifecycle
From first contact to detection.
Groomed
Trust built online over days or weeks.
Deposited
Victim buys and sends crypto to the platform.
Frozen
Withdrawals blocked or made conditional on fees.
Gone
Operator and funds vanish.
03 — Common variants
- Pig butchering
- Fake exchanges
- Rug pulls
- Wallet drainers
04 — Statutes & penalties
18 U.S.C. § 1343 (Wire Fraud), § 1956 (Money Laundering); 15 U.S.C. § 78j
10–20+ years and restitution; the largest schemes are prosecuted as wire fraud plus money laundering with full asset forfeiture.
05 — How people are drawn in
Victims are groomed through social media, dating apps, or 'investment groups' with live chats, testimonials, and small early withdrawals to build trust.
06 — Examples
- Fake trading platforms that display paper profits and block withdrawals.
- Rug pulls where developers drain liquidity from a new token.
- Pig-butchering operations that steer victims into fraudulent crypto apps.