Fake Crypto Exchange: How to Spot Scams and Avoid Lost Funds

When you hear about a new fake crypto exchange, a platform that pretends to let you trade cryptocurrency but is designed to steal your money. Also known as scam exchange, it often looks professional—complete with fake reviews, fake trading volume, and even fake customer support. But behind the polished website is a shell with no real infrastructure, no custody of funds, and no path to withdrawal. These platforms don’t just vanish overnight—they’re built to disappear the moment you deposit.

Most fake crypto exchanges, platforms that mimic real services like Binance or Kraken but operate without licenses or security. Also known as sham trading platforms, they rely on one thing: your trust. They show fake price charts, inflate trading numbers, and promise high returns on tokens that don’t exist. Some even create fake airdrops or limited-time bonuses to rush you into depositing. Once you send crypto, the site freezes, the support emails bounce, and your funds are gone. Platforms like LocalTrade, an unregulated exchange linked to user scams and lost funds and PayCash Swap, a platform with zero reviews and no verifiable history are textbook examples. They don’t just fail—they’re designed to fail you.

How do you tell the difference? Look for three things: real trading volume, verified team members, and public audits. If a site claims to have 10,000 daily trades but shows no order book history, it’s fake. If the team has no LinkedIn profiles or public track record, it’s fake. If there’s no third-party security audit or wallet address transparency, it’s fake. Real exchanges like Coinbase or Kraken publish their compliance details. Fake ones hide them. Even some crypto exchange shutdowns, legitimate platforms that failed due to mismanagement or fraud like EQONEX had at least some public records before collapsing. Fake ones never had any to begin with.

You’ll find posts here that expose exactly how these scams work—from coins with zero circulating supply to exchanges that vanish after a single airdrop. We’ve covered projects like DDM, UniWorld, and BCZERO, all of which were never real. We’ve also broken down how regulators track these platforms and why using unregulated exchanges puts you at legal risk. This isn’t theory. These are real cases, real losses, and real lessons. If you’ve ever wondered why your favorite crypto site feels "off," this collection will show you exactly what to look for—and what to run from.