Introduction

People are more active in crypto trading in 2025, hence this increases the risks involved with crypto.  

There are trillions of dollars being spent on digital assets, DeFi platforms, and prop trading firms. This has allowed scammers to come up with numerous modern crypto scams. Modern crypto scams are more convincing, more widespread, and more dangerous than anything we've seen before.

With new set of regulations in place security tools, and an increased awareness among traders, scammers 

continue to take advantage of:  

• FOMO (Fear of Missing Out)
• Little to no education for new traders
• The pseudo-anonymous nature of the blockchain

These have all come to a loss of thousands of dollars while falling victim to broad schemes/fraud. 
Another reason is daily scam schemes that are easily started at give away prices on the internet, under Domain names, AI generated content, or paid promoters.  

Let’s dive in and help you trade freely, smarter, and with full confidence.

Why Crypto Scams Keep Rising in 2025

Why do you think they are still growing with tighter security? The major reason standing out to counter this is;

1. Minimal Entry Barriers:  

Launching a fake NFT project, DeFi tokens, and trading website is well within the grasp of all individuals looking to launch these scams easily. 

Doing so step by step, anyone can pose to be legit and reap profits.

  2. Expansive International Market  

As Crypto expands globally, the reach of scammers has also grown larger than ever, including:  

• Mobile wallet or DEX users who are new traders  
• Users pursuing high-yield passive income on TikTok or Telegram  
• Prop trading applicants looking for easy money with little expertise

Understanding the Modern Crypto Trading Ecosystem

To avoid scams, you need to know what real crypto trading looks like. In 2025, traders operate across:

• Centralized exchanges (CEXs): e.g., Binance, Kraken, Coinbase
• Decentralized exchanges (DEXs): e.g., Uniswap, PancakeSwap
• Prop trading firms: where you pass a funded challenge, then trade with the firm’s capital on a trusted trading platform

These proprietary trading firms let you access large, funded accounts using their money. In return, you follow strict trading rules and receive a profit split if you succeed. 

It's one of the safest ways to scale your trading skills, assuming you find the best prop firm with transparent rules, scaling plans, and a fair fee structure.

Common Types of Crypto Scams in 2025

As the crypto market grows and adoption increases, scams are evolving rapidly. In 2025, fraudsters are using increasingly clever and deceptive tactics to target both beginner and seasoned traders. Whether you are trading DeFi tokens, buying NFTs, or exploring funded accounts with a prop trading firm, everywhere the risk is real.

Below are the common crypto scams:

1. Phishing Scams

What it looks like:

• Fake websites or apps mimicking trusted platforms like Binance, MetaMask, or Trust Wallet.
• Victims are tricked into entering their seed phrase, private keys, or login credentials.

How to avoid it:

• Always verify URLs (look for HTTPS and the correct domain).
• Never click links from unsolicited messages.
• Use two-factor authentication (2FA) and KYC-compliant platforms for added security.

2. Rug Pulls

What it looks like:

• A flashy DeFi project or meme coin gains rapid hype, collects investor funds, and then the developers vanish with the liquidity.
• Common in yield farming, NFT marketplaces, and newly launched tokens.

How to avoid it:

• Check for smart contract audits, locked liquidity, and real team profiles.
• Be wary of projects with no clear roadmap or anonymous founders.

3. Fake Prop Firms

What it looks like:

• Scammers create convincing websites claiming to offer funded trading accounts.
• They charge a challenge fee, then ghost you after passing, or fabricate your results.

How to avoid it:

• Look for verified trader reviews, payout proof, and transparent challenge rules.
• Trusted firms will clearly state:Max drawdown,Profit targets and Platform details (e.g., MT5, cTrader)

4. Pump-and-Dump Schemes

What it looks like:

• Influencers or Telegram groups hype up low-cap coins with misleading claims.
• They then sell their holdings at a peak, leaving others with massive losses.

How to avoid it:
 

• Avoid coins that gain attention solely from social media hype.
• Research project fundamentals, team background, and tokenomics before buying in.

Red Flags That Scream “Scam” in Crypto Prop Trading

Here's how to differentiate between a scam and genuine prop trading firms.

1. Guaranteed Profits or Risk-Free Returns

If a firm claims you’ll earn a guaranteed profit in a volatile market, it’s time to walk away.

No true provider of signals or prop firm will assure risk-free returns.

Real firms focus on evaluation metrics, risk management, trading psychology, and compliance disciplines.

2. No Company Information or Legal Transparency

Lack of a verifiable:

• Founding team
• Registered business address
• Legal structure

...is a serious warning sign.

3.  No KYC or Identity Verification

It is a major red flag if you can open a funded account without any form of identity verification.  

Reputable firms will use KYC to help mitigate fraud and comply with legal obligations tied to the industry.  

The absence of KYC means that there are no systems in place to ensure responsibility is taken, which increases prevalence and exposure to scams.  

4. Aggressive Marketing  

“Last chance to join!”  
“Only 3 spots left!”  
“Exclusive access expires in 15 minutes!”  

Statements of this nature seek to invoke FOMO (fear of missing out) and rush your decision.  

A trustworthy prop firm gives traders time to fully comprehend each term properly like the:  

• Trading rules  
• Profit split structure  
• Challenge fee details  

5. Drawings including vague or hidden trading rules  

If one is unable to easily access or understand the following:  

• Drawdown limits  
• Risk parameters  
• Profit targets  
• Trading hours or restrictions  

Before paying any challenge fees, properly walk away until presented with the full rulebook.  

What to Do After Getting Scammed in crypto Trading

Nobody starts trading crypto with the mindset of getting scammed. Everyone enters trading with the hope of learning, growing, and building something worthwhile.

Unfortunately crypto scams do take place.
You don’t deserve the blame. This is a new era; scammers like these are everywhere, and even an experienced trader can get trapped. 

Steps to Take After You’ve Been Scammed in crypto Trading:

1. Report the Scam at Once to Your Payment Provider

React immediately if the payment was made through PayPal, Stripe, Razorpay, your bank, or a credit card.
Elaborate on every point correctly by explaining what went wrong and providing them with transaction IDs, emails, and screenshots.

Your chances of a refund improve dramatically the sooner you take action.

2. Collect Every Document You Have

Your information may not get you your money back, but it can protect others and contribute to a case against the scammer.

Collect:

1. Correspondences with the broker, prop firm, or chat with them via email
2. Screenshots depicting the website and account dashboard, or any promises that have not been kept.
3. Social media accounts, telegram usernames or other urls associated with the scammers.
4. Make sure to back these up as printed copies or via cloud storage for legal purposes.

3. Report to The Appropriate Authority for Cybercrime or Cyber Regulatory Crime Counters  

Financial fraud is considered a crime in most jurisdictions, and so is cybercrime. 

Depending on where you live, you can report online financial fraud to your country’s cybercrime unit or financial regulator.

4. Share Your Story to Warn Other Traders

As a scam victim, you now have the opportunity to safeguard others.
By sharing your narrative, you dismantle evil systems that scammers have put in place to shield their nefarious deeds.

Where to post:

• crypto and prop firms subreddits
• Trustpilot, crypto Peace Army, or Scamadviser
• Any Facebook or Discord group you are part of or general group created on telegram
• Be factual, not emotional. Include specific names, dates, screenshots, and URLs.

Final Thoughts

Crypto trading is one of the most exciting opportunities of the digital age. But with rapid growth comes increased risk.
You are free to choose any prop trading challenge or a funded account, but before that, ask these questions:
Is there clarity concerning rules and fees from the prop firm’s side?
Does the prop firm have scaling and a reasonable profit share?

Start with The Trusted Prop and explore:

• Our list of verified prop firm reviews.
• Head to our Best Prop Firm Discount page to save on your challenge fees.

Start your next crypto funded account with full confidence.