How Not to Invest into Crypto Ponzi Scheme?

A Fictional Story from the Real World

One day, Martina noticed stories from her friend on Instagram celebrating her “newly gained financial freedom.” She wrote that thanks to exclusive crypto signals from a Telegram group, she was earning hundreds of euros a day – all “from the comfort of home.” When Martina showed interest, she was added to a closed group where members shared positive reviews, screenshots of high profits, and motivational quotes.

During the first month, Martina paid €150 for access to the Telegram group where the signals were shared. It didn’t take long before the group began encouraging her to “build her own team,” since the top-earning “leader” was reportedly making thousands of euros per week in commissions. Martina then reached out to her colleagues, family, and friends. All of them paid entry fees – from which Martina received a generous commission.

One day, however, the leaders of the entire “project” announced that signal sharing would be suspended indefinitely due to an ongoing audit. At the same time, payouts stopped, and even the website and mobile app ceased to function. The affected investors lost access to their accounts and were left without any possibility of withdrawing money from the project.

Ponzi Schemes in 5 Steps

1. The scam often spreads through people you know – friends, colleagues, or family. They may already be part of the system and genuinely believe they are “just helping.”
2. Telegram or WhatsApp groups tied to such scams are filled with fake statements showing fabricated profits, testimonials, and photos of a luxurious lifestyle. Scammers use these to create the illusion of a real, profitable business.
3. Members are motivated to pay an entry fee for access to “trading signals” that promise “easy and guaranteed earnings.”
4. Recruitment is the key – the more people an investor brings in, the more they “earn.” This creates a classic pyramid structure. Older investors are paid using the money from new ones – not from trading or any real investment returns.
5. One day, the group disappears, the platform stops working, and the administrators vanish. In some cases, the scheme rebrands and continues under a new name.

Explanation of the Scam

The so-called “exclusive crypto signals” scam is, in reality, a modern version of a pyramid/Ponzi scheme. Participants are first approached through social media or messaging apps such as Telegram and WhatsApp – often by someone they trust, like a friend, colleague, or family member. Scammers offer victims access to a private group, where for a relatively small fee (e.g., €100 – €300), they can receive “trading signals” supposedly generating profits without the need for any knowledge or effort. These profits are claimed to be guaranteed, often reaching tens of percent per month (or several percent daily).

However, the real mechanism behind the scheme is not trading profits but constant recruitment of new members. Participants are motivated to create their own “team” – the more people they recruit, the more commissions they earn from their deposits. The scheme thus forms a network in which the profits of higher-level members depend solely on the contributions of new investors. Meanwhile, the platform publishes fake screenshots, fabricated reviews, and success stories to create an illusion of prosperity and lure in more victims.

Such systems may appear legitimate for some time, as the early participants actually receive payouts – but these come from the deposits of new victims, not from any real investment returns. Once the influx of new members slows down, the platform collapses or “rebrands” under a new name, while the administrators disappear. Participants are left without their entry fees or any additional money invested in the project.

Advice from the National Bank of Slovakia

The National Bank of Slovakia warns against the growing number of scams based on referral systems and false promises of financial freedom. You can recognize them by the following signs:

• Offers of “passive income” without work or knowledge.
• Promises of guaranteed or risk-free profit.
• Pressure to build a team or attract new investors.
• Payouts funded by the deposits of previous investors.
• Manipulation through fake success or wealth stories.

If you suspect a scam, contact the Slovak Police (Polícia SR).

Last updated on 20 Nov 2025