Every recovery tells a story — and this one reminds us that even the most professional-looking crypto exchanges can be elaborate scams.
Earlier this year, a client from Singapore reached out to Lost Coin Rescue after being defrauded by what appeared to be a fully operational crypto exchange. The website showed live prices, customer support, and even trading history. But behind the polished interface was a fraudulent operation built to steal.
How the Scam Worked
The client had deposited over $74,000 in USDT over two weeks. Each transaction showed up on their “account balance” page, and fake customer representatives guided them through “trading sessions” that seemed real.
When the client tried to withdraw profits, the platform requested a “liquidity verification fee” — a common tactic to extract more money. Once the client refused, the website suddenly went offline.
Our Investigation
Upon receiving the case, our forensics team immediately began blockchain tracing using the provided transaction hashes (TXIDs).
We discovered that the stolen funds had been funneled through several wallet layers and eventually landed in a custodial wallet linked to a regional exchange in Singapore.
Working with our compliance partners and legal counsel, we submitted a chain-of-custody tracing report and a formal recovery request to the exchange’s legal department. Within days, the custodial account was flagged and frozen pending verification.
The Outcome
After review and cooperation with relevant financial authorities, $74,000 in USDT was successfully recovered and placed under custody pending final clearance. The client’s case was then processed through our disbursement intermediary, ensuring lawful release.
This case demonstrated the power of immediate reporting and transparent tracing — key factors in making any crypto recovery possible.
Key Lessons for Crypto Users
- Always verify the exchange’s license before depositing funds.
- Be cautious of platforms requesting “verification” or “release” fees.
- Never rely solely on visual legitimacy — scams can look incredibly convincing.
- If something feels wrong, stop transactions and seek professional help right away.
Lost Coin Rescue’s Role
Our team’s expertise in tracking multi-hop wallet activity and coordinating with legal authorities allows us to handle complex cases across jurisdictions. Whether it’s a fake trading platform or a social-engineered investment scam, our approach is always evidence-based, professional, and compliant.
If you’ve been scammed by a fake exchange, don’t assume it’s too late.
Even partial recovery can make a difference — and taking action quickly is the first step.
At Lost Coin Rescue, we combine blockchain forensics with legal strategy to help victims reclaim what’s rightfully theirs.
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