Case file · CH-2026-006 · Fake crypto exchange
$115,000 frozen on an “exchange” that turned out to be a shell
VectorFake crypto exchange
InstrumentBTC / USDT
Reported loss$115,000
Recovered22%
Reported operator: ETHBTC ↗ · Client: Startup founder, Austin, TX
How it started
Marcus moved his crypto to ETHBTC for its advertised yield product. Deposits and the dashboard worked smoothly for two months.
Where it went wrong
When he tried to withdraw, the exchange demanded a “tax clearance” deposit, then froze the account entirely. The funds had already been swept out through mixers.
“By the time I realised, the money had been moving for weeks. Speed is everything, and I was slow.”
What we did
- Traced the outbound flow through several hops and a mixing service.
- Identified the limited fraction that landed at a compliant exchange.
- Filed a freeze request with that exchange and a law-enforcement report.
- Gave Marcus an honest, early read that most of it was likely unrecoverable.
22% recovered
Only the fraction that reached a regulated exchange could be frozen and returned. The mixed portion was gone.
Red flags, in hindsight
- A “tax” or “clearance” deposit required to withdraw.
- Yield products with no verifiable custodian.
- Delay between the problem and getting help.
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