Introduction

The rapid growth of crypto assets has opened new opportunities for innovation and investment — but also new avenues for criminal activity. Because crypto transactions are borderless, irreversible, and often anonymous, they have become a fertile ground for fraud schemes. Understanding how these schemes work and what legal steps can be taken is crucial for both investors and service providers.

This article outlines the most common fraud methods in the crypto ecosystem, evaluates their legal implications under Turkish law, and provides guidance for victims on how to respond effectively.

1. Fake Exchanges and Phishing

Fraudsters often build websites or mobile applications that closely imitate legitimate crypto exchanges. Users who log in through these fake platforms unknowingly share their credentials with the criminals, allowing them to access and drain their real accounts.

While some exchanges use advanced security measures such as two-factor authentication, newly launched or poorly secured platforms are particularly vulnerable to such attacks.

2. Ransomware and Social Engineering

Ransomware involves malicious software that locks users out of their devices and demands crypto payments for restoration. In addition, attackers frequently use compromised e-mail or social media accounts to impersonate trusted individuals and request crypto transfers.

Victims, believing they are sending funds to friends or colleagues, transfer their assets directly to the fraudsters’ wallets.

3. Fake Shops and Token Rug Pulls

Some fake e-commerce sites accept crypto payments but never deliver goods. Similarly, fraudulent token projects raise funds through pre-sales and disappear once they collect enough capital.

These schemes rely heavily on creating a false sense of legitimacy through flashy marketing campaigns, misleading whitepapers, and fake endorsements.

4. Scam Tokens and Market Manipulation

In these schemes, criminals create new tokens, retain a large share of the supply, and artificially inflate the price through aggressive marketing, influencer promotions, and false news. Once the price peaks, they sell their holdings, causing the price to collapse and leaving investors with worthless assets.

Because crypto assets are not classified as securities under Turkish law, such manipulative actions often fall outside traditional capital market supervision, making early detection and due diligence essential.

5. Ponzi Schemes and Pyramid Models

Ponzi schemes promise high returns with little or no risk, paying early investors with funds collected from new participants. In the crypto version, platforms often freeze withdrawals or disappear once a certain amount of money is collected.

The Thodex and Vebitcoin scandals in Turkey illustrate how quickly such schemes can cause widespread harm.

6. Cryptojacking (Hidden Mining)

In cryptojacking, attackers secretly use victims’ computing power to mine crypto assets without consent. This method not only causes energy and equipment costs for the victim but also constitutes a criminal act under the Turkish Penal Code’s provisions on unauthorized access and fraudulent use of services.

Legal Framework Under Turkish Law

Although the Turkish Penal Code (TCK) does not specifically define “crypto asset fraud,” these acts can be prosecuted under general and aggravated fraud provisions:

• Article 158/1(f): Fraud committed through information systems.

• Article 158/1(g): Fraud committed through media or broadcasting channels.

• Articles 243 & 163: Unauthorized access to information systems and unlawful benefit from services.

Depending on the circumstances, penalties can range from three to ten years of imprisonment, and fines may be doubled if committed by an organized group. Additionally, determining the Turkish Lira equivalent of the crypto asset at the time of the offence is key to calculating sanctions.

Legal Steps for Victims

1. Immediate Account Freeze: Contact the relevant exchange or wallet provider to freeze transfers and secure the account.

2. Evidence Preservation: Save transaction hashes, communication records, e-mails, and screenshots of fraudulent activities.

3. Criminal Complaint: File a detailed complaint with the public prosecutor, including the chronology and all supporting evidence.

4. International Cooperation: Since many fraudsters operate abroad, mutual legal assistance may be necessary.

5. Legal Counsel: Due to the complexity of these cases, working with experienced legal professionals can significantly improve the chances of recovery.

Conclusion

Crypto asset fraud is evolving rapidly, leveraging new technologies to exploit legal and regulatory gaps. While current Turkish criminal law provides a framework to address these crimes, effective prevention requires stronger regulatory measures, cross-border cooperation, and investor awareness.

Victims should act quickly, document everything, and seek legal assistance to maximize their chances of recovering their losses and holding perpetrators accountable.