Crypto Fraud: Nothing Is What It Seems, and Often More Complex Than People Realize

Crypto fraud is not simple deception

Those who think it always involves romantic scam scenarios, like the well-known “romance scams”, are mistaken. These certainly exist, but the reality is much broader. At Paucitas, we encounter countless other variants of crypto and investment fraud. The examples below are just a few from real-life cases:

• Professional fake platforms that are nearly indistinguishable from legitimate ones
• Telegram groups sharing investment tips and signs of investment fraud, with thousands of ‘members’ (often bots)
• Friendly or business relationships built through WhatsApp, Telegram, LinkedIn, or other social media
• Technically complex wallets or tokens that appear legitimate but are fake

It is important to understand that these scammers rarely act quickly. Most fraud schemes develop gradually. They build trust, present themselves as acquaintances, coaches, or business partners, and cleverly tap into existing success stories in the market. We described this pattern earlier in the truth behind crypto fraud.

Why it seems so believable

The appeal of crypto partly stems from the enormous profits people have genuinely made in the past. In 2016 and 2017, many made significant returns with so-called ICOs. New waves followed: in 2020 and 2021 with DeFi projects, and more recently with fortunes made on meme coins. These stories are legitimate: friends, acquaintances, or influencers who multiplied their investments tenfold in a short time.

Fraudsters know this. And they use the exact same language and promises: “This is the next big opportunity.” By leveraging hype coins, fake tokens, or even imitating real platforms, they create a believable narrative. Sometimes crypto is even “held” by a platform, which initially looks like fraud but turns out to be a standard client verification process. This happens too.

This illustrates that even when people believe they have been scammed, it is not always the case. The world of crypto is technically, legally, and emotionally complex. And it is precisely in these grey areas that scammers thrive.

The danger of shame

What we see time and time again is that victims remain silent. Not because they do not want to talk, but because they feel ashamed. They are afraid to tell their loved ones. Fearful of judgment, misunderstanding, or being laughed at. Some wait months, or even years, before seeking help. By that time, the money is often long gone, and the emotional damage can be immense.

This shame is unjustified. The techniques fraudsters use are sophisticated. They are organized, international, and often operate in teams with clearly defined roles. They have playbooks, scripts, even fake customer service desks and false company information.

The fact that someone falls for this says nothing about their intelligence, but everything about how far these criminal networks have evolved. The Dutch AFM also increasingly warns about this type of fraud.

Why we share this

At Paucitas, we see it as our responsibility to bring clarity to a world that is overwhelming and technically complex for many. Not to spread fear, but to provide structure, insight, and realism in situations dominated by confusion and uncertainty.

There are also cases where it turns out not to be crypto fraud at all, but where confusion arises due to unclear communication or complex processes. Consider platforms with legitimate but difficult-to-understand legal requirements such as KYC, AML, or source-of-funds verification. In such situations, in-depth knowledge and experience are essential to reach the right conclusion.

Our insights are based on hundreds of cases we have carefully investigated, and on conversations with people who often had nowhere else to turn.

That is why we will now begin publishing blogs. This is the first of many. Not only about crypto fraud, but also about the many other situations we encounter within the broad world of blockchain and cryptocurrency, including insights, examples, and lessons from real-life practice.

Do not hesitate to ask for help

You may be reading this because you have experienced something similar, or perhaps you are in the middle of it right now. If so, know this: you are not alone. At Paucitas, we are available 24/7 by phone at +31 (0)20 244 5774. You can also reach us by email at paucitas@paucitas.com or through the contact form below.

Whether you need immediate help, have questions, or are simply done with the uncertainty and want clarity, please feel free to reach out. Do not wait, and above all, do not carry this burden alone.

In brief: recognising patterns of crypto fraud

• Crypto fraud often follows recognisable patterns: guaranteed returns, pressure to deposit quickly and unknown platforms without a licence.
• The Dutch AFM regularly warns about crypto investment fraud and publishes a warning list that can be consulted at any time.
• Early signals include unsolicited approaches via social media, exceptional promises about returns, and the impossibility of withdrawing money quickly.
• Anyone who doubts the authenticity of a platform or provider can ask Paucitas for independent blockchain investigation of the counterparty and money flows.
• Fast action increases the chance that traces can still be followed on-chain; waiting reduces that chance significantly.

Key terms

Boiler room fraud is an organised form of investment fraud in which call centres sell high-quality investments that do not exist.

Pig butchering is a long-running trust-based fraud in which the victim is first approached emotionally before the financial harm is inflicted.

AFM warning list is a public register in which the Dutch Authority for the Financial Markets lists parties offering investment services without a licence.

Red flags are signals pointing to fraud, such as guaranteed profits, pressure to decide quickly and a lack of transparency about corporate structure.