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 Philippines
Report the loss to your bank or e-wallet provider straight away, to the PNP Anti-Cybercrime Group or the NBI Cybercrime Division, and to the Securities and Exchange Commission where an unlicensed investment offer was involved.
In the Philippines, the Bangko Sentral ng Pilipinas consumer redress mechanism covers banks and e-money issuers such as GCash and Maya, and the SEC pursues unregistered investment offerings. Where funds moved overseas or into crypto, civil recovery usually depends on identifying a regulated party, an exchange or a local intermediary that can be pursued.
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