4 clever crypto scams to beware — Dubai OTC trader Amin Rad – Cointelegraph Magazine

Aminhossein “Amin” Rad runs an over-the-counter trading desk in Dubai, United Arab Emirates. Searching for a business after dropping out of university, he started to style himself as a Bitcoin broker in 2016. Starting with his first deal after five months of wading through scammers and tire-kickers, Rad went on to found Crypto Desk, a business-to-business exchange that now deals millions of dollars of private crypto transactions among its 2,500 clients every day. 

But why do people use OTC desks when centralized exchanges offer lower fees, and what dangers come with the business? Rad spills the beans on a sector of the crypto world that flies under the radar for most retail traders.

 

 

Dubai OTC trader Amin is Rad by name and nature.

 

 

The devil is in the deal-tails

The crypto asset industry has its share of rampant unethical behavior that is encouraged by anonymity and a lack of regulation or enforcement. Having come across all types of scams over his years in the industry, Rad differentiates between what he calls soft scams and hard scams. The former are things such as indirect and impersonal rug-pulls, while the latter are more direct and targeted.

He says most buyers see “shitcoins and memecoins as a joke or a game,” and relatively few experience much emotional trauma when the game ends and prices take a nosedive. However, getting scammed is far from a joke when a serious investor is looking to invest a portion of their hard-earned wealth into the crypto market or cashing out to buy real estate.

“The psychological effects of hard scams are much more deteriorating” in part because they are direct, playing on the mark’s trust rather than greed, and the money is not always an amount that the victim can afford to lose. Rad goes on to explain the common scams.

 

 

Amin Rad, CEO of Crypto Desk, is at home in his office in downtown Dubai. Photo by Elias Ahonen.

 

 

Third-party scam 

A third-party scam involves a cybercriminal who finds a buyer and seller, introduces themselves as a broker, and offers an attractive deal to both. Rad explains that after building trust and “playing mind games,” the…

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