What to Do If You Were Scammed During a Crypto Exchange

Short Answer

Immediately move remaining funds to a new wallet, collect evidence, trace transactions to an exchange, and file an official report — this is your only real chance of recovery.

Lost your crypto in an exchange? Welcome to the club of deceived optimists. In blockchain there is no "cancel" button: every transaction is like a bullet — once fired, it won’t return.

Security

First, the facts: your coins live at addresses controlled by your private key. A confirmed transaction is irreversible — this isn’t a bank where you can call and complain to an operator.

You only have four options:

1. Voluntary refund (about as likely as winning the lottery).

2. Freeze on a centralized exchange (if the funds landed there).

3. Report to the police → request to the exchange.

4. Prevent further thefts (revoke approvals, transfer remaining funds).

Immediately cut ties with a compromised wallet. If your private key or seed phrase is leaked — transfer all remaining assets to a new wallet with a new seed. And no, don’t show it to a “support agent” promising to recover your funds.

Revoke all approvals. If tokens were drained via a malicious smart contract, immediately revoke approvals using Etherscan Token Approvals or Revoke.cash. It’s like changing locks after a suspicious “technician” visit.

Collect Evidence

• TXIDs (transaction identifiers).

• Sender/receiver addresses.

• Screenshots of chats and websites.

• Payment details (cards/fiat).

This is your armor in the upcoming fight. Without it, you’re naked against the tank of bureaucracy.

Tracing

You need to follow the transaction chain like a detective following footprints. Use:

• Blockchair for basic analysis.

• Breadcrumbs for transaction graphing.

If funds hit an exchange — that’s your chance. Like catching a thief running into a building with guards and cameras.

Time is critical. The first few hours after theft are golden. Your goal: find the receiving exchange and notify them + obtain a police case number for potential freezing.

Notifications

• If funds landed on an exchange — immediately contact support and the law enforcement team. Major exchanges have dedicated portals for this (e.g., Binance LERS).

• File an official police report at your place of residence.

Without a formal report, exchanges often ignore requests — they need paperwork, not just your story.

Fiat Aspect

• If you paid by card — initiate a chargeback with your issuing bank.

• Remember: chargebacks only apply to card transactions, not blockchain transfers.

• This may return your fiat funds, but not your crypto.

Add your case to the global complaint registry — Chainabuse. Sometimes public exposure accelerates exchange response.

Statistics

• The volume of “illicit” crypto transactions reached about $46.1 billion in 2023 (Chainalysis, Crypto Crime Report 2025).

• Investment fraud is the largest category of complaints in the U.S.: $5.6 billion in losses in 2023, of which $3.96 billion were crypto investment scams (FBI IC3 Annual Report 2023).

• Losses from hacking incidents totaled $2.2 billion in 2024 (Reuters).

• The largest theft — ByBit hack worth $1.5 billion (linked to Lazarus Group) (The Guardian).

• International cooperation is still weak: Travel Rule adoption remains slow (FATF, 2024).

Practice

Prepare a document package for exchange/police:

• A descriptive note (who/what/where/when/how).

• TXID, addresses, amount, network.

• “Seller” contact details.

• Card payment slips.

• Screenshots.

The more structured your report, the less likely it will get “lost” in the flood of complaints.

Mistakes

• Trusting “recovery agents” (9 out of 10 are scammers).

• Sending extra funds for “verification.”

• Trying to move coins around yourself to “confuse” the trail.

• Ignoring approval revocations.

• Not filing a police report.

Prevention

• Use only trusted exchanges with a solid reputation. See also: Security.

• Double-check addresses before sending; use test transactions.

• Never trust “great offers” from strangers.

• Get a hardware wallet.

• Regularly check and revoke unnecessary smart contract approvals.

• Use separate wallets for different purposes. See: What is Cryptocurrency.

• For cash withdrawals, consider using a Cryptomat or review all crypto-to-cash exchange methods.

• Enable two-factor authentication.

Remember: in crypto you are your own bank, guard, and insurance. No one will protect your funds better than you.

Immediate Action Checklist

1. Move remaining funds to a new wallet.

2. Revoke all approvals.

3. Collect evidence.

4. Trace funds, find the exchange.

5. Notify the exchange + file a report (IC3/police).

6. Add your case to a public registry.

7. Establish new operational hygiene.

Verdict

Transactions can’t be reversed, but you can buy time and a chance: fast exchange notification + official report = the only effective approach. Beyond that, discipline and a cool head are key. Trying to “negotiate” with a scammer is pointless — only law and speed work.