A crypto-backed loan can be a real product, which is exactly why this scam works. A Toronto client deposited Bitcoin as collateral with Coinxide for a loan that was always one more payment away.
Every time I added more collateral, they said the loan was about to clear. It never did. MTI Expert explained the structure of the scam, traced my Bitcoin, and got freezes in place before it was cashed out.— Priya S., Toronto, ON
Reaching the exchange first
We traced the Bitcoin from the deposit address to a consolidation wallet and on to two exchanges, then filed freeze requests ahead of off-ramping. About 67% (CA$61,900) was recovered.
The tell is structural: a legitimate secured loan never requires you to keep adding collateral before any funds are released. For more documented outcomes, see our case studies.