How to detect crypto scams before you lose your money.

How to detect and avoid crypto scams

Cryptocurrency continues to attract global attention, promising freedom from traditional finance and the potential for fast profits. But with this popularity comes a dark side: the rise of crypto scams that leave ordinary investors financially ruined. Trinidad and Tobago is no stranger to this, with the recent Trillions Systems Ltd (TSL) scandal exposing thousands of citizens to severe financial loss and emotional distress.

As regulators, media, and law enforcement dig deeper into the TSL case, it offers a painful but necessary opportunity to educate the public. This article outlines 10 practical ways to spot crypto scams, using Trillions Systems Ltd as a cautionary case study.

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A glimpse into the Trillions Systems Ltd disaster

By mid-2024, almost 3,000 people across Trinidad and Tobago invested in what they believed was a lucrative crypto and forex trading platform, operated by Trillions Systems Ltd. Run by James Kerron Timothy Junior Rose and other directors, TSL promised returns that were not just high but suspiciously high 10% per week or even tenfold returns.

The campaign to attract investors was aggressive. Rose flooded social media with pitches and created Telegram groups to coordinate the scheme. People from all walks of life bought in: lawyers, doctors, construction workers, and even vendors.

But by mid-2024, complaints began to emerge. Investors could no longer access their money through the company’s portal. Some reported account values up to TT$2 million (approx. US$296,296) but were unable to withdraw a single dollar. What appeared to be investment success was now nothing more than a digital mirage.

This example underscores why education about scam detection is so important. Below are ten critical red flags and preventive tips.

1. Unrealistic promises of high returns

Any platform offering guaranteed or outsized returns especially on a weekly basis is a major red flag. TSL promised 10% per week or 10x multipliers, which defy the norms of even the most aggressive financial instruments. No legitimate investment vehicle can consistently produce such gains without extreme risk or outright fraud.

2. Pressure to “get in early”

Scammers often use FOMO (fear of missing out) to lure people. In the TSL case, many were told they needed to “get in early” to maximise returns. This language is designed to rush decisions before due diligence is done. Real investments provide time to understand the risks and don’t rely on urgency.

3. Lack of regulatory oversight

TSL operated without meaningful oversight from financial authorities. It’s essential to check if the platform is registered with relevant bodies like the Trinidad and Tobago Securities and Exchange Commission or international equivalents, see full list below. Legitimate crypto platforms operate with licensing and regulatory compliance.

4. No transparency or verifiable trading records

Rose claimed to be trading crypto and forex personally but provided no proof. Legitimate platforms usually allow access to trading history, audit trails, or blockchain transaction IDs. TSL’s platform merely showed numbers, which according to investors, could not be verified or withdrawn.

5. Broken or manipulated withdrawal systems

A clear warning sign is the inability to access your own money. TSL investors were redirected to a homepage whenever they attempted a withdrawal. Later, the option was disabled entirely. Any system that limits access to your capital without notice is highly suspect.

6. Mystery pools and shifting terms

Investors reported their money being moved without consent into “10x mystery pools”. Original agreements for weekly payouts were replaced with vague promises and complex systems. Changing terms without investor input is unethical and often illegal.

7. Use of buzzwords without clarity

TSL used technical jargon like “build bank”, “earn on that bank”, and “run the figures” that sounded impressive but lacked clarity. When asked direct questions, Rose gave long-winded, evasive answers. A legitimate investment should be explained in simple, transparent terms.

8. Emotional manipulation and excuses

As complaints mounted, Rose used emotionally manipulative tactics, saying people could be “robbed at Christmas” and needed to “wait a week”. Later, he blamed losses on market volatility, even when crypto markets were surging. Scammers often use these excuses to delay the inevitable collapse.

9. History of failed ventures

Rose was previously involved in Rose Capital Investments Ltd, which collapsed in 2018. Investors lost large sums, including one person who hoped to fund pilot training. Scammers often resurface under different business names. Always research founders and check for past issues.

10. No independent audits or physical verification

TSL also claimed to hold physical assets like a quarry. Journalists and investors sought proof but received none. Promoters should be able to verify both digital and physical assets through third-party audits. If claims can’t be independently verified, assume the worst.

Impact on victims: Real people, real losses

The ripple effect of the Trillions scam is severe. One investor, hoping to fund university, lost TT$50,000. Another, a food vendor, couldn’t afford Christmas expenses or vehicle repairs due to lost funds. The mental toll is also real constant anxiety, depression, and a sense of betrayal plague those affected.

Some, like the legal sector investor, felt their trust had been exploited: “It’s frustrating I was trying to make up some extra money. I felt conned.”

Another from the construction industry called it what it was: “It unravels the same way as every Ponzi scheme in Trinidad and Tobago.”

Lessons for the future

Regrettably, Trillions Systems Ltd may not be the last such scam to emerge in the Caribbean. Fraudsters are increasingly targeting smaller economies, knowing that regulatory oversight is often limited and financial literacy varies widely. Education and vigilance are the only long-term defences.

Here are some steps investors can take to protect themselves:

Research thoroughly. Use tools like CoinMarketCap, Reddit, and government business registries to investigate platforms.
Avoid influencer-driven investments. Popularity on social media is not proof of legitimacy.
Stick to known exchanges. Use Binance or Kraken over unknown entities.
Ask for documentation. Demand trading histories, audit reports, or proof-of-reserve.
Consult a financial adviser. If you’re unsure, get professional input before investing.

The DSS connection: A pattern in Trinidad and Tobago?

The TSL scandal echoes similarities to the Drugs Sou Sou (DSS) operation, which also used community trust, the allure of high returns, and cryptic language to draw in thousands. Both cases show how quickly financial schemes can spiral out of control when driven by secrecy, charisma, and unchecked promises.

Stay informed, stay safe

Crypto and forex investments can be legitimate tools for wealth generation. But they come with risk and that risk multiplies when scammers prey on the uninformed. By learning from the painful lessons of the Trillions Systems Ltd collapse, current and future investors can guard against falling into the same trap.

Don’t chase dreams. Chase facts. Verify everything. And if something sounds too good to be true, it probably is.

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National regulatory authorities

Trinidad and Tobago

Central Bank of Trinidad and Tobago (CBTT)
Oversees financial institutions, banking regulation, and stability through its Financial Institution Supervision Department.
www.central-bank.org.tt
Trinidad and Tobago Securities and Exchange Commission (TTSEC)
Regulates securities, capital markets, and investment firms; operates under the CBTT’s supervisory framework.
www.ttsec.org.tt
Financial Intelligence Unit of Trinidad and Tobago (FIUTT)
Monitors financial transactions for anti-money laundering (AML) and counter-terrorist financing (CFT); collaborates with CBTT and TTSEC.
fiu.gov.tt

United States

Securities and Exchange Commission (SEC)
Regulates securities markets, enforces securities laws.
www.sec.gov
Commodity Futures Trading Commission (CFTC)
Oversees derivatives markets (futures, swaps).
www.cftc.gov
Federal Reserve Board (FRB)
Central banking system; regulates monetary policy and large financial institutions.
www.federalreserve.gov
Financial Industry Regulatory Authority (FINRA)
Self-regulatory organisation for brokerage firms.
www.finra.org
Consumer Financial Protection Bureau (CFPB)
Protects consumers in financial sectors (banking, credit, etc.).
www.consumerfinance.gov

United Kingdom

Financial Conduct Authority (FCA)
Regulates conduct of financial firms and markets.
www.fca.org.uk
Prudential Regulation Authority (PRA)
Supervises banks, insurers, and major investment firms (part of Bank of England).
www.bankofengland.co.uk/prudential-regulation

European Union

European Securities and Markets Authority (ESMA)
Enhances EU market integrity and investor protection.
www.esma.europa.eu
European Banking Authority (EBA)
Maintains EU banking sector stability.
www.eba.europa.eu
European Central Bank (ECB) – Banking Supervision
Oversees eurozone banks via the Single Supervisory Mechanism (SSM).
www.bankingsupervision.europa.eu

International

International Organization of Securities Commissions (IOSCO)
Global standard-setter for securities regulation.
www.iosco.org
Financial Stability Board (FSB)
Monitors global financial system and recommends policies.
www.fsb.org
Basel Committee on Banking Supervision (BCBS)
Sets global banking standards (e.g., Basel Accords).
www.bis.org/bcbs

Asia-Pacific

Japan Financial Services Agency (JFSA)
Regulates banking, securities, and insurance in Japan.
www.fsa.go.jp
China Securities Regulatory Commission (CSRC)
Oversees securities and futures markets in China.
www.csrc.gov.cn
Hong Kong Securities and Futures Commission (SFC)
Regulates Hong Kong’s securities and futures markets.
www.sfc.hk
Australian Securities and Investments Commission (ASIC)
Enforces corporate, market, and financial services laws.
asic.gov.au

Canada

Office of the Superintendent of Financial Institutions (OSFI)
Regulates banks, insurers, and pension plans.
www.osfi-bsif.gc.ca
Canadian Securities Administrators (CSA)
Umbrella organisation for provincial securities regulators.
www.securities-administrators.ca

Switzerland

Swiss Financial Market Supervisory Authority (FINMA)
Supervises banks, insurers, and financial markets.
www.finma.ch

Key Global Entities

International Monetary Fund (IMF)
Promotes global monetary cooperation and financial stability.
www.imf.org
World Bank Group
Provides financial and technical assistance to developing countries.
www.worldbank.org

Notes:

Jurisdiction: Links are current as of 2024. Always verify regulatory requirements for specific activities.
Regional Coverage: For country-specific regulators not listed (e.g., Germany’s BaFin, India’s SEBI), consult national government portals.
Multi-Jurisdiction Operations: Firms operating globally often engage with multiple regulators (e.g., U.S. SEC + EU ESMA).

For further details, visit the International Association of Insurance Supervisors (IAIS) for insurance regulation: www.iaisweb.org

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