When you hear crypto exchange warning, a red flag raised by users who lost money to fake or unregulated trading platforms. It’s not just a cautionary phrase—it’s a survival tip in a space where over $1.2 million has vanished in a single exit scam. Not every platform that says "exchange" actually is one. Some are just tokens wrapped in fake UIs, designed to look real until your funds disappear.
Take BITKER, a platform that vanished in 2021 after stealing from users and leaving no trace. It had trading pairs, fake customer support, and even a polished website—everything you’d expect from a legit exchange. But it was never licensed, never audited, and never meant to last. Then there’s Moonit, a token traded on decentralized platforms like Uniswap, not a centralized exchange. Many users think they’re signing up for a new exchange when they’re really just buying a token with no backing, no team, and no future. Confusing a token for an exchange is like thinking a grocery bag is a supermarket. Both hold things, but one is a container and the other is the whole store.
These aren’t rare mistakes. In 2025, regulators in the UK, Singapore, and Dubai are cracking down on platforms that mislead users with fake names, fake licenses, or fake promises. The Payment Services Act, a strict regulatory framework requiring exchanges to hold cold storage, report transactions, and prove they’re not shell companies. And in Dubai, VARA, the Virtual Asset Regulatory Authority, bans tokens with no real utility and shuts down platforms without proper capital. If a crypto platform doesn’t clearly say what license it holds—or hides behind a vague name like "CryptoWorld" or "TradeHub"—you’re already in danger.
Real exchanges like Kraken or Coinbase use HSM key management, hardware systems that keep private keys locked away from hackers. If a platform doesn’t mention security infrastructure, or claims to offer 100x leverage without explaining how it protects your funds, walk away. No legitimate exchange hides its security practices. They advertise them.
And don’t fall for the bait of "free tokens" tied to a fake exchange. Scammers use airdrops like WagyuSwap or Bit Hotel as fronts to collect your wallet address, then drain it later. Even if the airdrop itself is real, the platform asking you to connect your wallet might not be. Always check: is this exchange listed on CoinMarketCap or CoinGecko? Does it support real withdrawal methods? Is there a public team with LinkedIn profiles? If the answer is no, you’re not using an exchange—you’re playing Russian roulette with your crypto.
Below you’ll find real cases of what went wrong—platforms that vanished, tokens that were never meant to be traded, and warnings that came too late for some. These aren’t hypotheticals. They’re documented losses. Learn from them before you become another statistic.
Coinhub.io is not a real crypto exchange - it's a scam site mimicking a legitimate portfolio tool. Learn the red flags, why it's dangerous, and which exchanges to use instead.