travel_exploreOSINTGuide
Intermediateschedule~40 min

How to Investigate a Cryptocurrency Scam or Rug Pull

A method for tracing a crypto scam — from the fraudulent token or address to the wallets, exchanges, and people behind it — using public blockchain data.

Crypto scams — rug pulls, fake tokens, giveaway fraud — leave a permanent trail, because public blockchains record every transaction forever. Investigating one means following the money on-chain and connecting it to off-chain identities, a task where the ledger's transparency works firmly in your favour.

What you'll need

Steps

  1. Confirm and document the scam address. Pin down the exact token contract or wallet, capture the promotional site and posts, and record everything before it disappears.
  2. Read the ledger. Use a blockchain explorer to inspect the address — its balance, holders, and every transaction in and out.
  3. Follow the funds. Trace where the stolen money flowed, watching for the classic pattern of liquidity being pulled and dispersed across many wallets.
  4. Watch for obfuscation. Note when funds enter a cryptocurrency mixer or bridge — the clean trail may end there, but that entry is itself significant.
  5. Pivot to identity. Follow funds to exchange deposit addresses (which carry KYC), and link the scam's domain and social accounts to the operators through off-chain OSINT.

Common pitfalls

  • Interacting with the scam. Never connect a personal wallet or sign anything — you can lose funds or expose yourself.
  • Assuming a mixer is a dead end. It often is for the coins, but the entry is a finding, and other trails may remain.
  • Confusing volume with theft. Not every large transfer is loss; understand the contract before concluding.

Verify your result

You have a solid investigation when you can show the flow of funds from victims to cash-out points, mark where the trail was obscured, and support any real-world attribution with documented off-chain evidence.

Tools for this method

Key terms