Common cryptocurrency investment scams to watch out for in 2025
Cryptocurrency continues to attract attention in 2025, not only from investors but also from scammers. With digital assets becoming more mainstream, so too have the scams evolved—some slick, some obvious, and others nearly undetectable. This article explores the most common cryptocurrency investment scams to watch out for in 2025. It includes examples, expert commentary, and insights to help protect investors in the United States.
1. Rug pulls are still a major threat
A “rug pull” refers to a situation where the developers of a new cryptocurrency or decentralised finance (DeFi) project suddenly drain all liquidity or investor funds and disappear. This type of scam has grown in scale and sophistication, especially within decentralised exchanges where oversight is limited.
In 2021, the infamous Squid Game token case became a global headline. Investors bought into the token, hoping to profit from its association with the hit Netflix series. The price skyrocketed to over $2,800, then crashed to nearly zero in minutes. The developers walked away with approximately $3.38 million in investor funds.
Fast forward to 2025, and these scams are increasingly carried out on newer decentralised platforms. They often include fake audit reports, impressive roadmaps, and anonymous teams. Telegram groups and X (formerly Twitter) posts with influencers paid to promote the token also help create a buzz.
Crypto analyst Eric Conner told Decrypt:
“Rug pulls usually target newer investors who are driven by hype. They see a token rising fast and think they’re early. In reality, they’re walking into a trap.”
Investors should be wary of tokens with anonymous developers, no verifiable code audits, or sudden token launches with massive pre-sales.
2. Phishing attacks via fake exchanges and wallets
Phishing scams in the crypto world have advanced far beyond simple email tricks. In 2025, scammers are building near-identical replicas of well-known crypto exchanges like Binance, Kraken, and Coinbase. These sites capture login credentials and two-factor authentication codes in real time.
Chainalysis’ Crypto Crime Report 2024 reported:
“Phishing schemes accounted for over $210 million in stolen funds during 2024. The most common method was through fake exchange portals and fraudulent wallet apps.”
In one case in early 2025, an investor lost over $45,000 after entering their private keys into a phishing site posing as MetaMask’s official portal. The site was promoted via a paid ad on a search engine, which appeared above the legitimate result.
Experts warn that scammers also distribute malware through fake wallet apps available on unofficial app stores.
Blockchain security specialist, Alon Gal, commented in a report by TechCrunch:
“In 2025, the scammers are using AI to mimic the branding, tone, and even chatbot responses of real exchanges. A novice user can barely tell the difference.”
To stay safe, always access wallet sites through bookmarked links, and avoid clicking on sponsored ads for crypto platforms.
3. Celebrity impersonation scams
Celebrity impersonation remains one of the most successful tactics for scammers. In 2025, this has evolved to include deepfake videos and AI-generated voices. Fake livestreams on YouTube and X showcase impersonated celebrities like Elon Musk or Mark Cuban promoting a crypto “giveaway.”
In these scams, viewers are encouraged to send Bitcoin, Ethereum, or other cryptocurrencies to an address with the promise of receiving double in return. Needless to say, nothing comes back.
According to the FTC’s Consumer Sentinel Network Data Book 2024:
“More than 46,000 people reported losing over $1 billion in crypto to scams since 2021, with celebrity impersonators being one of the top methods.”
One video in early 2025 featured a deepfake of investor Kevin O’Leary, apparently encouraging viewers to invest in a new token. The video included fake endorsements and misquoted interviews.
Chris Pierson, CEO of cybersecurity firm BlackCloak, told CNBC:
“These aren’t the poorly-edited scams of five years ago. The videos look real. The voices sound real. And the wallets, once your funds are sent, are untraceable.”
If you’re ever promised free cryptocurrency by a public figure, assume it’s a scam unless it’s announced through their official, verified channels.
4. Pump and dump groups on social media
In 2025, social media-driven pump-and-dump schemes are increasingly sophisticated and decentralised. Coordinated through Discord servers, Telegram channels, and TikTok influencers, these scams involve buying up low-cap coins, aggressively promoting them, and dumping them on unsuspecting buyers.
A former group moderator spoke anonymously to Vice:
“We’d build hype around the coin, telling people it was about to explode. The real goal was to sell our own tokens once the price peaked. It was over in hours.”
Victims often believe they’re part of an exclusive group. They’re encouraged to hold the token even as the price begins to drop, with slogans like “HODL” and “Diamond Hands” used to discourage selling.
One investor from Ohio shared his story with NBC News:
“I thought I was part of a secret project. I invested $8,000. It tripled in value. Then within 10 minutes, it dropped to zero. I couldn’t even sell.”
These scams are often promoted as “pre-sales” or “low market cap gems.” The key red flags include urgent calls to buy, promises of guaranteed profits, and vague whitepapers.
5. Ponzi schemes disguised as trading bots or staking platforms
A new wave of Ponzi schemes in 2025 is targeting investors through automated trading bots and staking platforms. These services often claim to generate daily profits through arbitrage or high-yield protocols.
In 2024, the U.S. Department of Justice prosecuted the team behind HyperFund, which had promised consistent daily returns. The platform raised over $1.7 billion before collapsing. The funds of new investors were being used to pay earlier investors—a classic Ponzi setup.
The U.S. Attorney’s Office stated:
“HyperFund claimed to offer passive income through crypto mining. In reality, new investor funds were used to pay off earlier investors—a classic Ponzi model.”
Despite this crackdown, newer platforms such as “QuantumX” and “BotProfit360” have surfaced in 2025, using influencer partnerships and flashy dashboards to build trust.
FINRA’s guidance warns:
“If an investment promises high returns with little or no risk, it’s likely a scam. Crypto is volatile. No legitimate platform can guarantee fixed daily earnings.”
Always be cautious of platforms that delay withdrawals, lack transparency, or use referral schemes to grow rapidly.
How to stay safe in 2025
In the ever-evolving world of cryptocurrency, scams will continue to adapt. But by following some essential best practices, investors can reduce their risk:
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Verify all URLs: Avoid clicking on crypto links from social media or email. Always go directly to the official site.
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Do your research: Look into the team, whitepaper, audits, and community discussions before investing.
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Use hardware wallets: Store your assets in cold wallets for maximum security.
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Avoid FOMO: If it sounds too good to be true, it probably is.
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Stay updated: Follow trusted sources like the FTC, Chainalysis, or CoinDesk for scam alerts.
With vigilance and awareness, investors can navigate the crypto space more safely in 2025.