Fake trading bot scam

Trading bot scams target users who want passive crypto income but don't want to learn trading. A "bot" claims to use AI, statistical arbitrage, or Maximal Extractable Value (MEV) strategies to generate consistent returns. You're shown impressive backtests, slick dashboards, and (usually) small early payouts.

Variants:

• Custodial deposit bot. You send funds to the operator's wallet for the bot to "trade with." Funds are taken outright.
• Smart contract bot. You "connect your wallet" and approve a contract that drains your tokens via the standard wallet-drainer pattern.
• Telegram-bot trading. You're added to a Telegram group where a bot posts "winning trades." Often Ponzi structure underneath.
• MEV "arbitrage" bot. Promises to capture MEV opportunities; the JavaScript actually drains the wallet you paste into it.

Real algorithmic trading exists but is concentrated in hedge funds, prop firms, and a handful of professional retail traders — not retail-pitched "guaranteed return" bots.

• Guaranteed daily/weekly returns.
• "AI" or "MEV" used as marketing buzzwords without technical specificity.
• You're asked to send deposits to a custodial wallet.
• The bot only works if you connect your wallet and approve a contract.
• Telegram-only support and admin team.
• Tutorial videos with stock-photo presenters.
• "Free trial" requires depositing first.
• Withdrawal requires hitting a minimum balance that keeps moving.

1. Real algorithmic trading produces volatile returns, not consistent 0.5%/day.
2. Verify the team. Real prop traders have track records on Twitter, in podcasts, in established firms. Anonymous Telegram admins do not.
3. Open-source bot code is verifiable. Closed-source "AI" bots are not.
4. Read smart contracts before connecting your wallet. Most "trading bots" require unlimited token approvals — that's the drainer pattern.
5. Apply the rule: if a strategy genuinely produced guaranteed returns above market rates, it would be in major hedge funds, not on Telegram.

• Withdraw any remaining balance.
• Revoke smart-contract approvals at revoke.cash.
• Move remaining funds in your wallet to a fresh wallet generated on a clean device.
• Capture transaction hashes and contract addresses.
• Report to IC3.
• Expect recovery scams.

• Do not deposit more to "increase tier."
• Do not approve unlimited contract allowances.
• Do not trust testimonial videos in Telegram groups.
• Do not continue to use the bot "until you can withdraw."

• FTC: reportfraud.ftc.gov — the broadest US fraud intake; reports flow to thousands of law-enforcement agencies.
• FBI IC3: ic3.gov — the right destination when the scam is internet-enabled (phishing, BEC, romance, crypto).
• CFPB: consumerfinance.gov/complaint — for complaints about banks, money transmitters, payment apps, credit cards, debt collection.
• IdentityTheft.gov — if any identity information (SSN, driver's license, account credentials) was shared.
• Your bank or payment platform. Call the number on the back of your card or use the app's in-product help. Time matters — wires can sometimes be recalled within hours; ACH and Zelle are harder but worth trying.