Cryptocurrencies have gained a lot of traction recently. Several investors have started building their portfolios in the crypto market. However, this has also led to a significant rise in the number of scams. According to reports, cybercrime led to a loss of around $14 billion in cryptocurrency in 2021. Of this, crypto scams alone accounted for $7.8 billion, increasing by 82% compared to the previous year.
Among several types of scams used by criminals, crypto Ponzi has recently made the headlines. Ponzi also referred to as the Ponzi pyramid, is a fraud where scammers steal money from investors by promising high returns. The criminals then return the money from the funds collected from new investors. They also keep a portion for their personal use.
Scammers ask for investment in the market, usually in bitcoin, since it is the biggest cryptocurrency. Victims often think that they’ve lost their bitcoin. However, the good news is that there are a few ways to get it back. So, if you too have been the victim of the crypto Ponzi scam, here are a few bitcoin scam recovery methods to get back your lost coins.
Recovery Options Available in Your Arsenal
There are three typical ways of crypto Ponzi scam recovery, which are:
Hire Professional Fund Recovery Experts
If you are a victim of a crypto pyramid scam, professional fun recovery service providers should be your first option. They are the experts who know the in and out of the crypto market. Hence, they are in the best position to help you strengthen your case. Here’s how they work.
- Review your case: Review your case to determine if it is winnable or not based on previous experiences
- Gather evidence: Gather all the possible pieces of evidence to make your case strong
- Confront the entities: Confront all the parties involved across the chain of illicit funds transfer
- Get the money back: Going to great lengths to get your money back within record time
The best thing about hiring fund recovery experts is that they can help trace your coins in the market and get them back to you by confronting all the entities involved.
Log a Formal Complaint
While you have the option to log a formal complaint, it is usually limited to the nations that legally allow crypto trading. If your country does not allow trading in the crypto market, there’s no point in filing a complaint. Even if you do complain, the chances of getting back your coins are far less as the crypto market is highly unregulated.
Yes, you can hire hackers for bitcoin or other crypto scam recovery. But there’s a significant problem in hiring hackers. The thing is that most of these hackers are individual entities who won’t reveal their identities. Moreover, there are even chances that they scam you by promising recovery.
Suppose you lost 25 bitcoins due to a crypto pyramid scam. The hacker might tell you to transfer one bitcoin as a fee to get back your lost coins. But once you make the payment, the hacker will vanish, scamming you again.
Identifying a Crypto Ponzi Scam
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Every scam shows some red flags that you can identify to avoid becoming a victim. Some of these flags include:
- Every trading industry is volatile. Hence, if someone promises 100% high returns, and that too within a short time, the chances are that he or she is a fraudster.
- If someone promises you free cryptocurrency, it is a red flag
- When you don’t get appropriate answers to your questions, it is a scam
Essential Tips to Avoid Crypto Pyramid Scams
- Use only reputable exchanges that are legal and validated by regulatory authorities
- Conduct ample research about the websites and everyone involved in the trade
- Consult with your financial advisor or an expert before investing any money
- Trade or invest in cryptocurrency only if you know how it works
- Don’t fall for sophisticated websites, fake testimonials, or false promises
- Try to gather genuine reviews by connecting with other investors who have used the platform
- If you are planning to invest in cryptocurrency and not trade, hold the cryptocurrency in well-reputed wallets that can keep them safe
Several crypto Ponzi scams, like Onecoin, Bitconnect, PlusToken, GainBitcoin, etc., have been witnessed in the past. These scams have lured investors into investing billions into cryptocurrencies. The primary reason behind the growing cryptocurrency scams is the lack of education among investors. Hence, you must collect all the required information and knowledge before investing in a crypto coin. However, you know whom to connect with if you still get scammed.