Common Fraud In Crypto Banks

Published in
2 min readNov 21, 2022


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It is more and more clear on how all crypto banks collapse one by one…

From Luna, 3AC, Celsius, Voyager, FTX, BlockFi, and many more, those banks are making themselves vulnerable to the unstable market because they manufacture the money and create fake valuations.

Here are early signs of the fake valuation:

1 — create your own tokens

This is a red flag. Any own token creation is a way to siphon users’ money to plug a blackhole of their previous money issues.

2 — lending services

This is a red flag. Where the yield comes from, maybe users’ money without any real yields.

3- licensed business

Any licensed crypto business requires verification on the issuers and clearly stated what license can protect users’ money. Without any clear explanations, it is a red flag.

4- illiquidated assets

Any crypto companies with illiquidated assets are red flags that their valuation can be inflated.

5- unclear balance sheets

No transparency on their financial records is a red flag. Likely their assets are inflated.

6- audited is not helping

Verify audited companies and who performed auditing. Even audited crypto firms can be gone because their audit is overrated.

Crypto investors are not protected and it is not you but the industry to bring up investors’ protections to prevent all these bank run.

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