Fake CEX Mining Pool Scam: How Bitrace Helps Victims Recover Losses

Fake CEX mining pool scams are a long-standing type of cryptocurrency investment fraud. By creating fake exchange “official communities” targeted at specific groups and impersonating official customer service personnel, fraudsters claim to allow victims to purchase exchange platform tokens at lower rates, thereby defrauding victims of their cryptocurrencies.

Fake HT Arbitrage Scam

In April 2020, Bitrace received a call for help from a victim. Criminals invited the victim to join a Telegram group called “HT Arbitrage Chinese Group Community”. Within the group, they posted “arbitrage tutorials” and many group members shared their experiences of making profits by following these tutorials.

The group administrator promised investment returns by stating, “Users will receive 60 HT for every ETH deposited into a designated account, resulting in a rough profit margin of around 8%.” Initially, victims found that they could indeed receive real HT after depositing a small amount of ETH. However, upon depositing a large amount of ETH, they discovered that they no longer received the returned HT or that the returned HT was worthless fake coins. By the time they realized they had been scammed, it was too late.

Bitrace tracked and recovered losses

Bitrace’s on-chain investigators swiftly identified numerous fraudulent addresses employed by the perpetrators, and quickly mapped out the initial financial structure and hierarchical relationships of the criminal group. They successfully pinpointed the key suspect’s related address information, aiding victims in recovering their lost assets.

This case marks the first instance of a fake cex mining pool scam to be solved by law enforcement in Asia.

Current Situation, Not Optimistic

Fake cex mining pool scams remain one of the most prevalent fraud methods today, but as the industry evolves, the companies being impersonated are constantly changing to maximize the trust of victims.

Bitrace has accumulated years of experience and knowledge in combating such fraudulent activities. If you encounter such a scam and unfortunately suffer losses, please contact Bitrace immediately. Our investigators will assist you.

Contact us:

Website: https://www.bitrace.io/

Email: bd@bitrace.io

Twitter: @Bitrace_team

LinkedIn：@bitrace tech