Get your money back from Digital Currency Scams
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Table of contents
You can get your money back
Overview
The first step to protecting yourself from frauds and scams is to be knowledgeable of these threats and always be one step ahead of the scammers. But even if you were scammed, there’s no need to worry because we can help and show you how to get your money back.
What is digital currency?
Digital currency is a type of money that is exclusively available online or through electronic means. Fundamentally, it is intended to be a safe and decentralized medium of exchange, frequently recording transactions with blockchain technology. And in recent years, it has drawn a lot of interest as an investment instrument because of its potential for large returns. But it’s crucial to keep in mind that digital currency is extremely erratic and anonymous, making it a haven for scammers.
Three important Digital Currencies
Digital Coins:
Often referred to as “digital gold” because of its limited availability and promise as a store of value, this was the first and most precious digital money. It is increasingly being adopted by institutions and is widely acknowledged. It uses a decentralized blockchain network and was founded in 2009.
Ethereum
The most valued “Alcoin” (a term used to denote digital currencies other than Digital Coins) and the second-largest digital currency by market capitalization. Ethereum is a digital currency with its own distinct features and applications, but its underlying blockchain technology enables a wide range of projects, including decentralized finance (DeFi) applications.
Ripple
By market capitalization, it is the second-largest digital currency and the most valuable “Alcoin” (a term used to refer to digital currencies other than Digital Coins). Although a wide range of projects, including decentralized finance (DeFi) applications, are powered by its underlying blockchain technology, Ethereum operates as a digital currency with its own distinct features and applications.
Key Points
Digital currencies are a relatively new asset class that offer both significant risks and fantastic investing potential.
Watch out for promises of rapid wealth.
-Do your own due diligence and investigate wallets, websites, and information.
Steer clear of taking on debt you can’t afford to lose.
Is digital currency a scam?
Although digital currencies are not inherently fraudulent, they are similar to the Wild West of investing and speculation. For this reason, if you wish to invest in and trade in digital currencies, you should work with a trustworthy and ideally regulated virtual currency platform.
Fortunately, there are many options available to you; Coinbase is arguably the most well-known, respected, and trusted cryptocurrency exchange, with Bitstamp, Kraken, Binance, and Bittrex being other noteworthy and reliable exchanges. If you choose to use a different exchange, be sure to conduct thorough research before making any financial commitments.
Digital Coins mining scams
Digital currencies, such as digital coins, are produced by mining, a technique called Proof of Work. In order to complete extremely complex algorithms and record transactions on the distributed ledger, mining demands a substantial amount of processing power. The miner receives Digital Coins as payment for mining “blocks,” which are then added to the “chain.” Many frauds try to get people to “invest” in mining projects as a way to generate passive income because mining takes time, money, power, and infrastructure. Thanks to third-generation blockchains like Cardano, which employ a staking system rather than mining and don’t require a lot of power or infrastructure, this fraud is thankfully less popular. It also makes it much easier for people to generate passive revenue than it was with the old mining methods.
Digital Coins wallet scams
Digital wallets are used to store digital coins and all other digital cash. A private key and a public key are the two keys that are found in wallets. In essence, a public key is an address to which something can be sent. Permission to send or spend your digital currency is granted by a private key. Scams involving digital coin wallets are frequent and target new users of digital currency. Numerous digital currency fraud schemes have emerged, urging you to use their wallets since digital currency is stored in digital wallets. Don’t fall for frauds that want you to send your private key!
Pump and Dump scams
Pump and dump schemes are a type of scam that is practically ubiquitous in the world of digital currencies. Similar to stock scams, pump and dump scams occur when a person or organization buys a significant quantity of an alt-coin and then spreads false or genuine positive news to persuade as many others to purchase it as possible. Social media networks are the primary avenue that pump and dump operators utilize. The operators sell at the top once the price has increased, leaving everyone else to bear the consequences of sharply declining pricing.
Pyramid Schemes
Check out OneCoin for a great illustration of a pyramid scheme in the realm of digital currencies. The only difference between pyramid schemes and Ponzi schemes in the digital currency space is that scammers are now taking advantage of the market’s expansion to target you and trick you into thinking you’ll get rich overnight.
ICO Scams/Exit Scams
ICO stands for Initial Coin Offering. This is similar to the IPO (Initial Public Offering) process – but without the traditional regulatory process. Between 2016 and late 2018, the digital currency market was slammed with, literally, tens of thousands of new altcoins entering the market, all promising to be the next Digital Coins or Ethereum. Some of these new altcoins generated millions of initial investment from individuals, and when prices spiked, the owners sold. This is similar to a pump and dump, but it’s an exit scam when it involves an ICO. While the industry is still very new, it has matured some since 2008. It’s crucial that you do your due diligence and investigate, thoroughly, any new digital currency. This is especially true if you came across it on social media.
High-Interest Return Scams
A growing trend in the digital currency space, specifically the decentralized finance (DeFi) space, is high yield interest rates. There are many legitimate platforms that allow you to deposit or ‘stake’ various Digital Currencies and reward you with a high-interest rate. It is not uncommon to see regulated and legitimate projects offer up to 10% interest on stablecoins (essentially cash) or up to 15% for Digital Coins and Ethereum deposits! But be very, very cautious about any promise of return higher than 10% to 15%. And you must read the ‘fine print’ of even legitimate and regulated entities. There are some projects that require you to leave your deposit for up to 90-days in order to earn the highest yield.
Digital Currency Exchange Scams
When Digital Coins and others became a tradable market, there were few exchanges that were available. As time went on, more and more exchanges popped up. But not all of these Digital Currency exchanges were legitimate. Many were fronts that looked and appeared to be a place to buy and sell Digital Currency. The owners of the exchange would wait until a significant amount of people deposited and even began to trade on their platform until the owners would essentially pull the plug and take your Digital Currency investments. Along with Digital Currency exchange scams is the lack of security of some Digital Currency exchanges. The most infamous example of this occurred in 2014 when Mt. Gox (which processed over 70% of all traded Digital Coins) had 850,000 Digital Coins stolen (millions of dollars). Regarding fake Digital Currency exchanges, there are some that use fake volume to artificially inflate the trading volume and liquidity of the exchange. While this activity is still prevalent, a form of self-policing in the industry exists with the website coinmarketcap.com classifying every Digital Currency exchange as those with honest reported volume or dishonest volume.
Fall prey to a Digital Currency scam? how you can get your money back
If you’ve been the victim of Digital Currency or Digital Coins scams, don’t be disheartened. Due to the vast number of scams and the number of people hurt over the past five years, regulators worldwide have set their sights on any hint of impropriety in the crypto space. And take comfort in knowing that many people have recovered Digital Coins and other Digital Currencies – nothing is truly anonymous. A great first step is to utilize our fund recovery company: Payback, by filling out our contact request form . From there, we can start the process of crypto asset recovery, which will help you retrieve your stolen crypto. We will assign someone to your case who will work with you throughout this challenging process and try every possible method to get your money back.
What is Crypto Asset Recovery?
Crypto asset recovery is a specialized field that, as the name suggests, recovers stolen digital currencies with the use of cutting-edge blockchain technology. It involves tracing, identifying, and ultimately retrieving digital assets that have been lost or stolen due to theft, fraud, scams, or other malicious activities.
The Role of Blockchain Technology
Blockchain technology is a bit of a double-edged sword when it comes to recovering assets because of its nature. The good news is that transactions are transparent, which helps us track them. The tricky part is that users can be anonymous on the blockchain, which can complicate the process. But don’t worry – our team uses special tools to navigate those issues and find the best way to get your assets back.
Legal Frameworks and Regulations
The legal landscape surrounding crypto asset recovery is always changing but we make sure to stay at the forefront of regulatory developments and only use strategies that are compliant and effective. We work within the existing legal frameworks to help our clients pursue every available avenue to remedy their situation.
A Tailored Approach
Every digital currency scam is unique, and so is every investigation. That’s why we take a personalized approach to every investigation and tailor each Investigation Report and Action plan to the specific case and client. With these two in hand, you’ll be able to go after your scammers and have the tools and evidence you need to retrieve your money.
Crypto scam FAQ
Can you get scammed on Digital Coins?
Scammers and fraudsters exist everywhere, and this is especially true when it comes to Digital Coins. As a brand new asset class, be very careful when it comes to opportunities in this investment space.
How can you spot a Digital Coins scammer?
Digital Coins scammers are just like any other scammer. They will use high-pressure tactics, make you feel like you are missing out on a once in a lifetime opportunity, and show you false promises of riches and results. They will make it all seem too good to be true.
Can you lose money on Digital Coins?
Absolutely! As with any investment in any speculative market, the loss of value and your money is always at an inherent risk. But that is different from losing money because someone scammed you. Loss of value and market gyrations are one thing – but fraud is another.
How We Empower You to Take Action
At ReclaimBridge, we specialize in helping victims of digital currency scams. We’ll investigate your case, gather evidence, and provide you with the tools and resources you need to go after what was taken from you.
