A crypto exchange scam is a fraudulent scheme where scammers create bogus crypto exchanges that appear legitimate and offer attractive incentives, such as high returns or low trading fees. These scams target individuals looking to buy or sell cryptocurrency, luring them into depositing their funds on the fake exchange. Once the scammers receive the deposit, they disappear with the funds, leaving the victims without any recourse. In some cases, the scammers will double down by claiming that the initial deposit has been delayed due to technical issues or other reasons, and then ask the victim to send another transaction to expedite the process. This ploy is used to convince the victim that their deposit is being processed, while actually encouraging them to send additional funds.