How arbitrage scams work
The pitch is unusually persuasive because real arbitrage exists: prices for the same asset can differ between exchanges. The scam borrows that respectable idea and attaches a promise real arbitrage never makes — a fixed, guaranteed daily return with no risk.
In practice you are asked to fund an account, or to connect a wallet, or to buy crypto and send it to a platform that will "run the arbitrage for you". The trades do not happen. What happens is that your funds are moved on.
- A fixed daily percentage, often 1-3%, described as risk-free
- A requirement to hold or buy a specific token before you can participate
- Wallet-connect requests that grant unlimited spending approval
- Referral bonuses for bringing in friends and family
- Withdrawals that stall once the balance reaches a meaningful size
What can realistically be recovered
Where funds left in crypto and were laundered through mixers, prospects are poor and we will say so plainly. Where they passed through an exchange that performs identity checks, or where fiat was bought through a regulated on-ramp, there is a documented chain and often a party with obligations.
Blockchain tracing can establish where funds travelled and whether they reached a service that can be approached. Tracing is useful evidence; on its own it is not recovery, and any firm that presents it as recovery is overselling.
What we do
We assess the payment route, the parties involved and the realistic prospects before you commit to anything. If the honest answer is that the money cannot be recovered, you will get that answer for free.
Reporting and redress in United Kingdom
Report the loss to Action Fraud and to your bank immediately, and ask the bank to attempt a recall of any payment. If a regulated UK firm was involved, the Financial Ombudsman Service and the Financial Conduct Authority both matter to the outcome.
In the UK, several routes can run in parallel: a reimbursement claim against the sending bank under the mandatory APP reimbursement rules, a Financial Ombudsman Service complaint against any regulated firm in the chain, a chargeback or Section 75 claim where a card was used, and a civil claim against advisers or professionals whose negligence contributed to the loss.
Warning signs of an arbitrage scheme
- Guaranteed daily or weekly returns described as risk-free
- A closed platform that holds your funds rather than trading on your own exchange account
- Wallet approvals requested for unlimited amounts
- Rewards for recruiting other participants
- Support that is only available through Telegram or WhatsApp
- Fees demanded to "unlock" or "upgrade" the account before withdrawal