While cryptocurrency offers legitimate investment opportunities, fraudsters have designed elaborate schemes masquerading as educational programs to separate victims from their money. These scammers don’t even try to be subtle anymore. They create fake investment foundations, WhatsApp groups filled with “professors” and AI bots, all promising risk-free trials and guaranteed returns. Spoiler alert: nothing’s guaranteed except their plan to rob you blind.
The playbook is simple. Victims get lured through social media ads into WhatsApp groups where a so-called “professor” delivers investment wisdom. Next comes an introduction to a “revolutionary” crypto exchange. Your account shows profits—amazing ones! Then reality hits. When you try to withdraw, your account freezes faster than your computer when you have 37 browser tabs open.
When you try to withdraw, they’ll ghost you faster than your ex after borrowing money.
The numbers are staggering. Crypto scams took $5.6 billion from victims in 2023—up 45% from the previous year. Not chump change. Regulators are frantically waving red flags. The SEC, CFTC, NASAA, and multiple state agencies have issued warnings about these education schemes. They’ve seen too many people lose everything.
Red flags are everywhere if you know where to look. Unsolicited messages promising wealth? Run. Claims of risk-free investments? Yeah, right. Pressure to act immediately? Classic manipulation. These scammers are masters of social engineering, building trust before the kill. They’ll even encourage victims to take out loans for “more investing opportunities.” These schemes prey on people seeking financial inclusion but deliver the opposite of the security promised by legitimate cryptocurrency networks. Scammers often register as Exempt Reporting Advisers with the SEC to create a false appearance of legitimacy. How thoughtful.
When victims try to withdraw funds, surprise fees appear. Victims may be referred to fake loan providers on Telegram platforms who deposit funds directly to the exchange rather than to the investor. Can’t pay? Expect threats of legal action or worse. These aren’t your friendly neighborhood investment advisors.
Victims aren’t alone, though. Resources exist for reporting: the FBI’s Internet Crime Complaint Center, local law enforcement, financial institutions, and state securities regulators. Documentation is vital—save everything.
The crypto landscape isn’t all scams, but it’s crawling with predators wearing educational costumes. They’re counting on your FOMO and financial dreams. And unfortunately, business is booming.
