Stay Safe: Watch Out for “Crypto Reselling” Scams

As part of our #SafetySeries, we’re breaking down common scam tactics to help you stay alert and protected. Today’s topic: the growing threat of crypto reselling scams on platforms like Telegram.

How the Crypto Reselling Scam Works:

When you post a message in a public Telegram group, your profile becomes visible to other members. Scammers watch these groups closely, searching for new targets. Shortly after posting, you might receive a private message from a stranger — often friendly and persuasive — offering a “guaranteed opportunity” to earn easy money by reselling cryptocurrencies.

The scammer claims to have “insider information” about a coordinated crypto “pump,” where many participants will buy a specific token at the same time to drive up its price artificially. After a sharp increase, everyone supposedly sells for big profits.

This might sound exciting, but it’s important to recognize:

Pump-and-dump schemes are illegal in many countries and can expose participants to both financial losses and legal consequences.

If you show interest, you’ll typically be added to a private group where a “mentor” and other supposed “investors” show fake screenshots of large profits. This is all part of the setup to make the operation seem real and trustworthy.

Soon, the mentor will assign you a special trading account that they manage “for your benefit” and ask you to make an initial deposit to start participating. Once you send money, you’ll see impressive but fake reports showing your “growing profits,” encouraging you to invest even more for bigger returns.

But here’s the trap:

• Once you transfer a larger amount, the scammers disappear.

• You get kicked out of the group.

• The account is wiped, and no further communication is possible.

• Your funds are irretrievably lost.

Behind the scenes, the scammers controlled the entire environment: the group, the “mentor,” the trading account, and the fabricated success stories.

How to Protect Yourself:

• Be Skeptical of Easy Money: If someone promises fast, guaranteed returns with zero risk, it is almost certainly a scam.

• Know the Law: Participating in pump-and-dump schemes is illegal in many countries and can have serious legal consequences even for small participants.

• Stay in Control: Never hand over your trading accounts, crypto wallets, or funds to strangers, self-proclaimed asset managers, or financial “mentors.”

• Avoid Unfamiliar Platforms: Be cautious if someone urges you to join unknown websites, private groups, or apps — it’s often a red flag.

• Use Trusted Channels: Only interact with verified, trusted projects and services in the crypto space.

Final Reminder:

Crypto investments are high-risk by nature. Always perform your own research (DYOR) and never trust unsolicited offers, especially from strangers online.

This communication is not intended for persons located in the United Kingdom and is provided for educational and entertainment purposes only, not as investment advice.