Crypto Exchange Scam: What It Is and How to Avoid It

When navigating the world of digital assets, understanding crypto exchange scam, a scheme where a platform deceives users by stealing deposits, manipulating trades, or disappearing with funds. It’s also called exchange fraud, and it often thrives on the lack of oversight in the sector. One of the biggest enablers is a unregulated exchange, a trading venue that operates without licensing, audits, or consumer protection policies. Without clear rules, scammers can set up shop, lure users with low fees, and vanish before anyone can intervene.

Why Exchange Shutdowns and Hidden Fees Matter

A sudden exchange shutdown, the abrupt closure of a platform often leaving users unable to withdraw their assets is a hallmark of many crypto exchange scam operations. The shutdown triggers panic, making it harder for victims to trace where their money went. Often these platforms hide massive withdrawal fees that eat up a user’s balance before they even realize something’s wrong. The pattern is simple: lure users with low fees, collect deposits, impose unexpected high withdrawal costs, then shut down the service. This cycle shows how a lack of regulation, opaque fee structures, and abrupt closures create fertile ground for fraud.

Below you’ll find a curated set of guides and reviews that break down real‑world cases of exchange scams, compare regulated versus unregulated platforms, and give you actionable steps to verify an exchange before you trust it with any funds. From detailed analyses of Hotbit’s 2023 shutdown to lessons learned from COINSPACE’s hidden fees, the collection equips you with the knowledge to spot red flags early and safeguard your crypto portfolio.