Hurt by a Crypto Loss? Be Careful of Anyone Who Offers to Help You Win It Back

What Binance said, and what we don't know

On October 29, 2026, the crypto exchange Binance posted a "Security Incident Update." It estimated the impact at about $6.3 billion and said it would cover all losses from its SAFU fund and company funds. In a video posted on X on October 30, co-CEO Richard Teng said what was affected was "Binance's own hot wallet," and that "Your assets are safe." (A hot wallet is a crypto wallet kept online so an exchange can move money quickly.)

Binance says it has reserved over $6.34 billion of company funds to cover the incident. It also said that its first look suggested a compromised laptop, but that "subsequent investigation has uncovered additional points of breach." As of October 30, 2026, Binance said withdrawals were paused and deposits were not affected. These are the company's own statements, and we haven't seen them independently verified.

Here is what we don't know. Binance has not said that any customer lost money. BBC reported that Binance has not published a list of affected accounts. We also don't know of any official report of scams tied to this incident, and this article doesn't claim there are any.

Binance did add a warning of its own. Teng wrote on X on October 29 that users should "remain cautious of scams" and not trust unofficial links, messages, or requests for account information, and that official updates will come only through Binance channels. The company's announcement says the same thing in fewer words: "Please rely only on official Binance channels for updates."

So why write about scams at all? Because news like this stirs up old pain and new worry, and scammers are good at timing. The people most at risk may not be anyone who lost money in this incident, since we don't know that anyone did. They may be people who lost money in a crypto scam some time ago, and are quietly hoping for a way to get it back.

Why a loss makes the next pitch work

The Commodity Futures Trading Commission (CFTC), the federal regulator that oversees futures and derivatives markets, put the pattern in plain words in a 2020 advisory: "Recent market losses due to the impact of COVID-19 may motivate some traders to recoup losses, while others may seek safety. Fraudsters know this and design their pitches to appeal to these instincts."

The same advisory describes one of the traps: "Sunk cost bias. This is the willingness to put in more money, rather than cut losses, because we believe things will turn around or because we've invested much already." And it adds: "Fraudsters commonly use major news events, such as the spread of COVID-19, to add credibility to their cons or manipulate emotions."

That advisory was about a different event, and it came from one agency. No other agency we checked uses the words "sunk cost." But the idea runs through decades of warnings. In 2005, the SEC wrote: "While it's natural to want to recoup one's losses as quickly and as fully as possible, the SEC warns investors to be extremely skeptical of offers to exchange worthless or poorly performing stocks for blue chips or 'hot' performers." It described scammers who "prey on individuals who lost money once and are willing to invest even more in the hope of recovering their losses." And it said the fraud ends only "when you finally run out of patience or money to chase your losses."

Notice what that pitch is not. It isn't the fear of missing out, the "everyone is getting rich and you're not" feeling. It's the opposite. It's the quiet thought that says "I'm already down, so one good move could fix it." The scammer's job is to make that thought sound like a plan.

If you feel that pull, nothing is wrong with you. It's one of the most human things a person can feel after losing money. It just helps to know that someone out there is writing messages for exactly that moment.

How the "win it back" pitch usually runs

Here is the general pattern, assembled from what the FTC, the FBI and financial regulators describe. It isn't a real message, and any names, numbers and sites in a message like this would be made up.

1. They find you first. The FBI says crypto investment scammers "typically initiate contact through text messages, social media sites, advertisements, or dating applications and then quickly move the conversation to a messaging platform." The FTC's 2022 data on crypto losses says "nearly half the people who reported losing crypto to a scam since 2021 said it started with an ad, post, or message on a social media platform." The top platforms in those reports were Instagram (32%) and Facebook (26%). That was reports from 2021 to early 2022, and it says where people said they were first contacted, not that those platforms allow scams. The FTC adds that scammers who place ads "can even use tools available to advertisers to methodically target you based on personal details, such as your age, interests, or past purchases."

2. They promise a big, safe return. The FTC says "Investment scammers claim they can quickly and easily get huge returns for investors." A pitch aimed at someone who lost money often sounds like a fix: a "system," a "trader" or a "recovery plan" that can make up the difference.

3. They show you early wins. The FTC says some people "report making a small 'test' withdrawal." Seeing a little money come out makes the rest feel safe.

4. They ask for more. The FBI says that eventually, "when the victims try to withdraw their money, they will be charged taxes and fees as a final attempt to exploit money from the victims before the scammers disappear with all the victim funds." The FTC says people are told "to send more crypto for (fake) fees, and they don't get any of their money back."

5. They move you to a private chat. The SEC, CFTC, FINRA and the North American Securities Administrators Association (NASAA) warned in 2024 that scammers "might run advertisements or add targets to a group chat that the target didn't seek to join."

6. They want crypto. The same joint alert says "An investment might not be legitimate if the investor is required to pay for it with crypto assets." The FTC puts it more bluntly: "Nobody legit will require you to buy cryptocurrency."

How big this is

These aren't rare cases. The FBI's Internet Crime Complaint Center (IC3) reported that "Cryptocurrency investment fraud was the highest source of financial losses to Americans in 2025 with $7.2 billion reported in losses." That was 61,559 complaints. Across all complaints that involved crypto in 2025, IC3 counted 181,565 complaints and $11.366 billion in losses.

The FTC told Congress on March 25, 2026 that consumers reported $15.9 billion in fraud losses in 2025, and that investment scams were the top fraud by losses, with consumers reporting "over $7.9 billion in losses and an average individual loss of over $10,000." The FTC also said social media was the top contact method by losses.

These are reported losses, so they show only part of the picture. If you've been caught, you are in very large company.

Signs it's a scam

• Someone you don't know contacts you first about investing, or about getting money back.

• A guaranteed or "risk free" return. The FTC says "Only scammers will guarantee profits or big returns." The joint alert says "Promises of high investment returns, with little or no risk, are classic warning signs of fraud."

• Pressure to act fast. The CFTC says "Pressure to act quickly should signal you to tap the brakes."

• You're told to pay in crypto, or to buy crypto first.

• You're moved from an ad or a comment to a private chat.

• You can't find the person or the company in a registration check.

• You're asked to pay a fee, a tax or a deposit before you can withdraw or be repaid.

• You're discouraged from reporting it or talking to anyone.

Before you put in another dollar

The agencies' advice is plain, and none of it requires you to be an expert.

1. Slow down on purpose. The CFTC points to pressure as the tell. Give a new pitch a day before you answer, and talk to someone you trust first.

2. Don't make investment decisions based on a stranger. The joint alert says: "don't make investment decisions based on the advice of anyone who makes unsolicited contact with you online or through an app or text message."

3. Check that the person or firm is registered. The CFTC says to "check to first see if the person or company selling you advice or asking for your money is or has been registered with the CFTC." The SEC says to "Always verify whether the broker and the firm are properly licensed," and points to FINRA's BrokerCheck. If you can't find them, treat that as an answer.

4. Search the name with the word "scam." FINRA suggests "adding the term 'fraud' or 'scam' in your search."

5. Remember what no one can promise. The CFTC says "no person or program can guarantee future results." The FTC says "No cryptocurrency investment is ever guaranteed to make money, let alone big money."

6. Never send more money to get your money. The CFTC puts it plainly: "Never send more money to get what is yours."

7. Don't double down because you're already down. If a new plan only makes sense because of what you lost, that's a reason to stop and ask someone else.

The second pitch: "We can recover it for you"

The other thing scammers do with loss is sell you rescue. The FTC calls refund and recovery scams "the worst of the worst: scams that target people who have already lost money to a scam." It describes how they work: "someone says they can help get your money back or recover the prize or item you never got. You just need to pay them first. If you do, you'll lose more money."

Scammers can know your story. The FTC says "Scammers buy, sell, and trade these lists, expecting that people who have been scammed once are good targets for being scammed again." The FBI says the same about crypto: "Victims are also targeted in recovery scams, claiming to help recover lost funds."

FINRA, the securities industry's self-regulator, wrote in 2024: "Recovery offers can be tempting, especially if you've already lost a large sum of money and are anxious to reclaim any amount you can. But engaging with these scams will only further your losses." Its list of red flags is short: "Anyone who charges you up front for asset recovery, guarantees your money can be returned, or discourages you from filing a complaint with law enforcement about the loss is almost certainly a scammer." It also says "They'll then issue false press releases or engage in deceptive advertising through social media, boasting of their success in returning customers' lost funds."

None of this is new. In 1996 the FTC took action against a telemarketing "recovery room" that told people it would recover money lost in earlier scams, and said recovery rooms "generally provide false hope to victims who, ultimately, are victimized again." That case wasn't about crypto or investments. The SEC warned investors about recovery pitches in 2005. For crypto, the earliest official warning we found is an FTC consumer alert from November 16, 2022, written when a different major exchange had failed. It said the failure of a big exchange "could lead to potential scammers looking to cash in," and that you shouldn't "pay anyone who contacts you, offering to recover money you lost to a scam."

The rule is the same every time. Government agencies and legitimate organizations "will never ask for money to help you get a refund," the FTC says. The FBI says "Law enforcement does not charge victims a fee for investigating crimes."

Seed phrases and codes

A seed phrase is the string of secret words that unlocks a crypto wallet. Anyone who has it can take everything in the wallet, and it can't be undone. A real recovery service, exchange or support agent has no reason to ask for it.

Binance's own security pages say the same thing about its customers. Its anti-scam help page says "Binance will never ask you to move your funds to a wallet to 'secure' them." Its account security tips tell users to "Never share the 2FA codes" (the one time codes that confirm it's you), and to "Always access Binance from its official websites or App." A message that pushes you to do the opposite isn't from them.

What to do

1. Don't pay a fee to anyone who contacts you offering to recover crypto. That includes "taxes," "release fees" and "verification deposits."

2. Never share a seed phrase, a password, or a code you were sent. Not with support, not with a lawyer, not with a stranger who says they traced your funds.

3. Go to your exchange only through its official app or website. Don't use a link from a message, an ad or a comment. If your exchange posts updates, read them there.

4. Treat a hot tip on how to make it back the same way: pause, check registration, search the name with "scam," and tell someone before you move money.

5. Keep records. Save the messages, the website, any wallet addresses and payment details. You'll need them if you report.

6. Report it. The FTC takes reports at ReportFraud.ftc.gov, and the FBI's IC3 takes them at ic3.gov.

If you already paid

Take a breath. Getting caught doesn't make you foolish. Contact the company you paid through right away, whether that's your bank, a card issuer, a payment app or a crypto exchange, tell them it was fraud, and ask whether the payment can be reversed. The FTC is honest that crypto payments don't carry the same protections as cards, so it can be hard to get money back. Then report it. Expect more offers, because the FTC says scammers trade lists of people who've paid. Each new "recovery" offer gets the same answer: no.

If you are hurting

A loss can feel like shame, anger and panic at the same time. None of that is a sign you were careless. Scammers build pitches for smart, careful people too.

If you can, tell one person you trust what happened, even if it's only half the story. Carrying it alone makes a rushed decision more tempting. If the stress is heavy, a doctor or a counselor is a good place to take it, and your state's consumer protection office can help you figure out your options.

Helping a friend or a parent

If someone you love lost money to crypto, they may be getting these offers now, and they may not tell you. You don't need a lecture. One sentence can cover it: "If anyone offers to get your money back, or help you make it back, and wants money or a seed phrase first, it's a scam. Call me first."

Then offer to sit with them while they check the person or firm.

The Bottom Line

News about a crypto breach can reopen old losses, and scammers know it. They don't sell the fear of missing out. They sell the hope of getting it back: a guaranteed return, a "system," a recovery fee, a seed phrase "to secure your funds." Regulators have warned about this for years. Don't chase a loss with new money. Don't pay anyone to recover it. Don't share a seed phrase or a code. Check any new pitch yourself, slowly, with someone you trust.

Check Before You Put In Another Dollar

An ad, a group chat or a stranger's offer can look convincing when you're hurting. Get a second look before you send money or share anything.

For you. If a message, an ad or a screenshot about getting crypto back, or making it back, is what started this, FraudSentry checks it before you answer or pay: the red flags, how the scheme works and what to do next, in plain English. Get it on the App Store for iPhone or Google Play for Android. New subscribers: try every feature free for 7 days, then $24.99/year (or $3.99/month). Renews automatically, cancel anytime. No account needed. You stay in control.

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Frequently Asked Questions

Did customers lose money in the Binance incident?

Binance has not said that any customer lost money. It says it will cover all losses from its SAFU fund and company funds, and co-CEO Richard Teng said what was affected was Binance's own hot wallet. BBC reported that Binance has not published a list of affected accounts.

What is "sunk cost bias"?

The CFTC describes it as "the willingness to put in more money, rather than cut losses, because we believe things will turn around or because we've invested much already." In plain words, it's putting in more because you've already put in so much.

Can a company really recover my crypto for a fee?

Be very careful. The FTC says never to pay upfront for a refund or help with a refund. FINRA says anyone who charges you up front for recovery, or guarantees your money can be returned, is almost certainly a scammer. The FBI says law enforcement does not charge victims a fee for investigating crimes.

Is a crypto ad on Instagram or Facebook always a scam?

No, and we aren't saying that. The FTC's 2022 data shows where people who lost crypto to scams said it started: nearly half said an ad, post or message on social media, with Instagram and Facebook the top platforms named. The safer habit is to treat an investment pitch that finds you as unproven until you've checked it yourself.

Should I ever share my seed phrase?

No. A seed phrase unlocks the whole wallet. A real exchange, lawyer or recovery service has no reason to ask for it.

Sources

• Security Incident Update — Binance
• Binance on X: additional points of breach — Binance
• Binance on X: reserved company funds — Binance
• Richard Teng on X: video update — Binance co-CEO Richard Teng
• Richard Teng on X: caution on scams — Binance co-CEO Richard Teng
• BBC live coverage — BBC News
• Be on Alert for Frauds Seeking to Profit from Market Volatility Related to COVID-19 — United States Commodity Futures Trading Commission
• Litigation Release No. 16026 — United States Securities and Exchange Commission
• Worthless Stock: How to Avoid Doubling Your Losses — United States Securities and Exchange Commission
• It Can Be Hard to Recover from "Recovery" Scams — Financial Industry Regulatory Authority
• Relationship Investment Scams — SEC, CFTC, FINRA and NASAA joint investor alert
• Refund and Recovery Scams — Federal Trade Commission
• Reports show scammers cashing in on crypto craze — Federal Trade Commission
• Social media: a golden goose for scammers — Federal Trade Commission
• Worried about crypto exchange losses? Don't pay money for "help" recovering money — Federal Trade Commission
• Testimony on the rising scam economy — Federal Trade Commission
• FTC Halts Fraudulent Telemarketing "Recovery Room" — Federal Trade Commission
• 2025 Internet Crime Report — Internet Crime Complaint Center
• Increase in Companies Falsely Claiming an Ability to Recover Funds Lost in Cryptocurrency Investment Scams — Internet Crime Complaint Center
• Binance Withdrawal Anti-Scam Measures — Binance
• Binance Account Security Tips — Binance