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Binance Sentry Report Goes Detailed In How Crypto Scams Operate

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.


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One of the world’s biggest crypto exchanges, Binance, has recently issued out a report. This report went into detail as to how various scams that target crypto investors try to gain increased credibility to operate effectively.

A Warning Of High Sophistication

This report, published on the 30th of June, 2020, went into detail as to how Binance Sentry, the risk investigation service of the exchange, observed various reports regarding fraudulent investment schemes. These schemes typically promised a quick or even exponential return to their crypto investments. These frauds do not focus purely on crypto, however, and usually expand into binary options, forex, and contracts of difference (CFDs), as well.

This report was published shortly after a recent Bitcoin (BTC) scam. This scam, in particular, targeted the Canadian residents of Winnipeg back in late June this year.

Many-Headed Snakes

Scam organizations, at large, are the frequent subject of warnings from various regulators. Even so, they use a broad array of different, seemingly unrelated brands, as well. As a testament to this, it’s quite expected to have literal dozens of projects be all various faces of one singular operation. In particular, these brands may prioritize a single type of scam or focus, such as one brand focusing on crypto, while the other focuses on CFDs, or even forex.

Some of these fraudulent operations may even entail creating an entire “consumer organization” in order to squeeze the victims of even more money before suspicions start to rise that this was a scam, subsequently trying to report it. These sort of operations fabricate governmental agencies and regulating bodies on the regular. This includes things such as corporate registers, all in a bid to earn the trust of the investors to steal their money.

A Complicated Legal Process

Furthermore, Binance Sentry took note that a lot of these scams are global in nature. What this means, is it’s a lot harder to take action against them. The simple matter is, that these victims could be situated in a jurisdiction that’s different from where this scam is situated. As one would predict, this causes a very large level of complexity when it comes to trying to push legal action against these groups. Furthermore, it becomes harder to establish connections between victims, as there’s no clear-cut communication in regards to these cases spread so far apart.

With the sheer amount of money flowing through the crypto industry at large, it’s more a matter of time before another crypto scam pops up. Regulators and law enforcement can’t prevent a scam from occurring but plays more like a damage control entity, trying to keep the chaos to a minimum.

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