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List of Fake Crypto Exchanges: Beware and Stay Protected
The popularity of cryptocurrency trading has skyrocketed in recent years, offering lucrative opportunities for investors. Unfortunately, it has also attracted scammers who establish fake crypto exchanges to exploit unsuspecting users. These fraudulent platforms lure victims with promises of low fees, high returns, and lucrative offers, only to steal their funds and personal information. Recognizing these fake exchanges is critical to staying safe in the volatile crypto market. Below, we explore common red flags and list some known fake crypto exchanges.
Red Flags of Fake Crypto Exchanges
Unrealistic Offers
Fake exchanges often promise no trading fees, guaranteed profits, or exclusive access to top-performing cryptocurrencies. Be cautious of deals that sound too good; legitimate exchanges do not guarantee returns.
Absence of Regulation
Authentic crypto exchanges are regulated by authorities like the SEC in the U.S. and FCA in the UK. Scammers rarely comply with these regulations, so always verify the platform registration status.
Fake Reviews and Testimonials
Scammers use fabricated user testimonials and ratings to appear credible. Always cross-check reviews on independent platforms.
No Withdrawal Options
Fake exchanges may allow you to deposit funds but prevent withdrawals. This tactic traps users and forces them to lose their investments.
Examples of Fake Crypto Exchanges
Binance Global (Imposter) – While Binance is a legitimate and renowned exchange, scammers often create fake websites by altering the domain slightly. These copycat platforms aim to steal user credentials and funds.
BitKRX – This fraudulent exchange impersonated the Korean financial exchange, KRX, to trick users into thinking it was a legitimate platform. The scam was exposed when users could not access their funds.
CoinsbitEX – This platform promised high yields for crypto investors but vanished after collecting substantial deposits. It offers returns that are unrealistic and unsustainable.
Trade99 – Trade99 presented itself as a global cryptocurrency exchange with advanced trading tools. However, it operated without regulation and eventually disappeared after locking user accounts.
ProBit Digital – Not to be confused with the legitimate ProBit Global exchange, this scam leveraged the name to deceive users into transferring funds. Users later discovered they could not withdraw their assets.
How to Protect Yourself from a List of Fake Exchanges?
Research the Platform
Always check reviews and feedback from trusted sources. Verify the platform’s reputation on forums like Reddit or Trustpilot.
Check for Regulation
Confirm that the crypto exchanges are registered with regulatory authorities in their operating country. Look for compliance certifications and licenses.
Enable Security Features
Use exchanges that offer two-factor authentication (2FA) and encrypted transactions.
Avoid Suspicious Domains
Double-check the domain name for subtle spelling variations. Bookmark official exchange URLs to avoid accessing imposter sites.
Reporting Fake Exchanges
In Europe, the European Consumer Centre or local financial regulators. In the U.S., file a complaint with the SEC or the FTC.
Conclusion
Fake crypto exchanges are a growing threat in the digital finance landscape. By recognizing the signs of fraudulent platforms, conducting thorough research, and using verified exchanges, you can protect your assets and avoid costly mistakes.
If you suspect you’ve encountered a fake crypto exchange, don’t wait—take action now. Report suspicious platforms, learn how to stay protected, and access expert assistance. Let CryptoScams.com.au help you recover lost funds and safeguard your future in the crypto market. Contact us for a free consultation today!