7 Ways How to Report a Scam Exchange

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In this article we will look over the 7 ways how to report a scam exchange.

So you have been scammed by a shady exchange. This is nothing new in the cryptocurrency field, and many of us have been there. Precedents like BiteBTC, Coinsmarkets.com, Bitconnect, Bitpetite and many more have “exit-scammed” and stole their users’ funds. Although previous practice shows that there is not much you can do about this situation, we stress it’s not all that black and white. Here’s what you can do if your exchange of choice exit-scammed, locked you out of your funds, doesn’t let you withdraw your funds, closes their website and etc.

1. Contact your local authorities

The first thing you can do is to contact your local authorities. You go to your local police station and file a complaint about an internet fraud. From that point on, it is up to them if they want to get in touch with their international colleagues and address the situation. It’s almost the same practice what you would do if your bike got stolen or any other everyday theft. Of course, it is up to you if you want to help the investigation by actively getting involved.

2. Let everyone know of your situation publicly

Next, you can do a series of posts, blog posts, twitter threads about your particular case online. Use social media like Facebook, Twitter, LinkedIn, Reddit, Bitcointalk or any others. Make sure you tag in the subject which scammed you. Also, tag in your local authorities pages or profiles. Use hashtags like #scam #fraud and similar to raise more awareness of your situation. Also, make sure to attach any visual material you have. Try to find similar cases to yours and engage with other people who are in the same position as you are. Maybe somebody got further in the case than you and knows something you don’t.

3. Contact your bank

If you sent your funds to the exchange with the help of your local bank account, and these funds are 100% legal and you can prove it, you can contact your local bank. Contact them by explaining your situation and providing bank accounts or addresses where the money was sent. You can raise awareness by letting the bank know that this particular bank account defrauded you. This is done so that the bank can identify these bank accounts and probably interfere their future operations. Maybe they’ll even black-list this account.

4. File a complaint at the U.S. Commodity Futures Trading Commission

While the previous three options were related to your local authorities, this is where international authorities come in. CFTC is an international establishment and their mission is to protect users from internet scams. You can report a scam on their website. Their mission reads:

“The mission of the Commodity Futures Trading Commission (CFTC) is to foster open, transparent, competitive, and financially sound markets. By working to avoid systemic risk, the Commission aims to protect market users and their funds, consumers, and the public from fraud, manipulation, and abusive practices related to derivatives and other products that are subject to the Commodity Exchange Act (CEA)”

In this link you can report your scam exchange by describing the situation, telling about the firm/individual you are complaining about, telling about yourself, and the instruments that you used. Also, you can upload additional files which would help the investigation. 

5. Federal Bureau of Investigation: Internet Crime Complaint Center (IC3)

Another international option is to file your complaint to the FBI special Internet Crime Complaint Center. Their mission is to ensure positiveness and safety environment in online advertising, freeware, mobile apps, and even virtual currency. In the past couple of years, the FBI IC3 Center has received thousands of complaints about more than $15 million stolen in crypto scams combined. You can file your complaint by filling out the complaint form.

Previously their primary focus was on Telephone, online advertising, phishing e-mails, and pop-up messages, but now they have involved cryptocurrency-related scams as well.

6. Better Business Bureau

BBB is a trust marketplace where buyers and sellers trust each other. Although this company is mainly focused on U.S., Canada, and Mexico, it handles international companies and is willing to guide a scam victim through the process of filing a complaint. Also, they have their own database where you can search whether the company have any other complaints.

Just visit their webpage and follow the instructions. 

7. USA.GOV’s Online Safety

Although you might not be from the United States, you can contact them to find out which exact agency you should contact for your specific case. The page consists of a few links of government authorities which could handle your case. They mention government authorities such as the FBI, the Federal Trade Commission (FTC), EConsumer.gov and the Department of Justice (DOJ). In addition, they have put out some pointers on how to protect yourself on the internet.

Visit their webpage for more information.

Conclusion

We contacted many lawyers and people who are connected with law and finance. They all say that you should better forget about your money/investment which you lost because there is literally nothing you can do. The main reason being that these companies have a hidden true beneficiary and they choose specific countries where to register. Mostly those are countries with high risk jurisdictions which aren’t cooperating with international organizations. In addition, it is relatively easy to become a licensed registered agent within these countries. The competition has grown fierce, costs have gone down, and it’s easy to start a reselling business and still offer attractive pricing while raking in a nice margin.

You can check the list of some of these countries here and here.

In this article we kind of proved the opposite. Actually, there is so much you can do. You can report a scam to these authorities. Those are your funds. Nobody likes to lose money. These cryptocurrency scam exchanges always seem legit judging by their UI and special offers they provide. That is a clear consumer deception, and the authorities should properly address these cases. Hey, at least it is better to sit around and do nothing about your money. Even if you will not get your funds back, you will have the feeling that you did everything you could. 

Source:

https://www.lifewire.com/how-do-i-report-internet-scams-fraud-2487300
https://forms.cftc.gov/Forms/TipsAndComplaints.aspx
https://www.cftc.gov/About/MissionResponsibilities/index.htm
https://complaint.ic3.gov/default.aspx?
https://www.bbb.org
https://www.usa.gov/online-safety
https://www.cryptovibes.com/editors-choice/where-to-apply-if-you-got-scammed-by-exchange-or-fake-cryptocurrency/
https://www.streber.org/2015/10/jurisdiction-spotlight-seychelles/
http://www.fatf-gafi.org