In brief. Crypto scams are fraudulent schemes that exploit the technical complexity of cryptocurrencies and the high speed of on-chain transactions to extract money from victims. In Italy they are prosecuted under Article 640 (truffa), Article 640-ter (frode informatica) and Article 615-ter (unlawful access to information systems) of the Criminal Code, with frequent overlap with money laundering under Article 648-bis. Recovery is technically possible but depends on whether the funds end up at a centralised exchange that cooperates with judicial orders.

At a glance

  • Crypto scams are not a standalone offence in Italy — they are prosecuted under art. 640 and art. 640-ter of the Criminal Code, often with money laundering charges.
  • The main families are investment scams with fake trading platforms, rug pulls on new tokens, fake exchanges, phishing wallets and giveaway scams.
  • Funds at a centralised exchange (CEX) can usually be frozen following a preventive seizure order; self-custody wallets are far harder to reach.
  • Speed matters: scammers typically move funds through mixers and multiple wallets within hours.
  • The CONSOB blacklist lists unauthorised platforms targeting Italian residents — checking it first is the most effective preventive measure.
  • For fraud (art. 640) the criminal complaint (querela) must be filed within three months from discovery; computer fraud involving a transfer of money or virtual currency (art. 640-ter, para. 2) is prosecuted ex officio. Filing promptly is advisable in every case.

Definition: what is a crypto scam under Italian law

A crypto scam is any fraudulent scheme that uses cryptocurrencies or digital assets as bait, payment channel or laundering layer. Under Italian law, the qualifications most often applied are:

  • art. 640 Italian Criminal Code (truffa) when the victim is deceived into transferring funds;
  • art. 640-ter (frode informatica) when the perpetrator interferes with a system — for instance manipulating dashboards or executing unauthorised transactions;
  • art. 648-bis (riciclaggio) when the proceeds are moved across wallets to obscure their origin.

The Italian legal framework on crypto also includes MiCA (Regulation EU 2023/1114) at EU level and the implementing rules on Crypto-Asset Service Providers, which set authorisation duties and consumer protection rules.

  • Art. 640 of the Italian Criminal Code — fraud (truffa).
  • Art. 640-ter — computer fraud.
  • Art. 615-ter — unlawful access to information systems.
  • Art. 494 — identity substitution.
  • Art. 648-bis — money laundering.
  • Art. 648-ter.1 — self-laundering.
  • Art. 321 of the Italian Code of Criminal Procedure — preventive seizure.
  • Regulation EU 2023/1114 (MiCA) — markets in crypto-assets.
  • Directive EU 2018/843 (5AMLD) — anti-money-laundering rules extended to crypto.
  • D.Lgs. 231/2007, as amended by D.Lgs. 90/2017 and D.Lgs. 125/2019 — Italian AML rules applying to crypto operators.
  • D.Lgs. 129/2024 — Italian implementing rules for MiCA.
  • CONSOB resolutions publishing the list of unauthorised platforms targeting Italian residents.
  • Budapest Convention on Cybercrime (Law 48/2008).

Main types of crypto scams

Investment scams with fake trading platforms. The most damaging type by aggregate losses. Victims are approached by a “broker” or “advisor” — often through social media or after a romance scam — and onboarded onto a platform that displays fake profits. Withdrawals are blocked with pretexts (tax fees, AML checks).

Rug pulls. Developers launch a new token or DeFi project, attract liquidity and then withdraw it, leaving holders with worthless tokens. Often the smart contract contains hidden functions allowing the developers to drain the pool.

Fake exchanges and clone websites. Sites that mimic legitimate exchanges to capture login credentials or accept deposits never to be returned.

Phishing wallets and approval scams. Malicious websites prompt the user to connect their wallet and sign a transaction that authorises the scammer to drain it. Often distributed via fake airdrop notifications.

Pig butchering (“sha zhu pan”). A long-running scheme combining romance scam and investment scam, with high cumulative losses.

Giveaway and impersonation scams. Fake celebrity giveaways promising to “double” any crypto sent. Frequent on X (Twitter) and YouTube live streams.

SIM swap and exchange account takeover. Sophisticated attacks where the perpetrator takes control of the victim’s phone number to bypass two-factor authentication and empty exchange accounts.

How to recover funds: the realistic landscape

Recovery is possible but constrained. It depends primarily on where the funds end up.

  • Centralised exchange (CEX). The most favourable scenario. With a preventive seizure order issued under art. 321 of the Italian Code of Criminal Procedure, and via mutual legal assistance if the exchange is foreign, funds can be frozen and eventually restored to the victim.
  • Self-custody wallet. Without the private key, the funds are technically inaccessible. Recovery requires identifying the holder of the wallet and obtaining personal recovery, typically through civil action against the identified party.
  • Mixers and privacy coins. The most adverse scenario. On-chain analysis (Chainalysis, TRM, Elliptic) can sometimes follow the flow despite mixers, but recovery is rare.
  • Fiat off-ramps. When the scammer cashes out at a regulated exchange, the cash-out account can be frozen and traced.

Speed is essential. Funds typically move through multiple wallets within hours. Filing a criminal complaint with an immediate request for preventive seizure is the only realistic path.

What to do if you are a victim

  1. Stop the bleeding. Do not transfer further funds — including for “withdrawal fees” or “tax clearances”, which are part of the scam.
  2. Preserve evidence: full transaction history, wallet addresses, transaction hashes, screenshots of the platform with URLs and timestamps, conversations with the scammer.
  3. Run an on-chain trace with a specialist where amounts justify it; this is what informs the seizure request.
  4. File a criminal complaint in Italy under art. 640 and art. 640-ter, with a request for preventive seizure of identified wallets.
  5. Coordinate with foreign counsel where the exchange is in another jurisdiction.
  6. Reject recovery scams. Anyone contacting you spontaneously to “retrieve your crypto” for an upfront fee is part of a secondary scam.

Case examples

(Illustrative examples: they do not refer to specific proceedings.)

Case 1 — Investment scam with CEX freeze. A victim transfers a substantial amount of stablecoin to a wallet linked to a fake trading platform. A complaint filed within hours, supported by an on-chain trace showing the flow to a major centralised exchange, allows the prosecutor to request a preventive seizure, routed via mutual legal assistance if the exchange is abroad. Whether and how much can be frozen depends on how quickly the funds are traced.

Case 2 — Phishing approval scam. A victim signs a malicious approval transaction that drains a hot wallet. If the on-chain trace identifies a cash-out at a regulated exchange, the criminal complaint can support a seizure request on the cash-out account; any recovery is usually partial.

FAQ

Are crypto scams a specific criminal offence in Italy? No. They are prosecuted under article 640 (fraud), article 640-ter (computer fraud) and, where the funds are moved through layered transactions, article 648-bis (money laundering) of the Italian Criminal Code.

Can stolen crypto be recovered? Sometimes, and often only in part. Recovery is most successful when the funds end up at a centralised exchange that cooperates with judicial orders. Self-custody wallets are much harder to access.

What is the time limit to file a complaint? Three months from the moment you discovered the fraud (article 124 of the Italian Criminal Code) for fraud under article 640, including the aggravated form committed remotely. Some cases (for example computer fraud involving a transfer of money or virtual currency) are prosecuted ex officio, but a prompt complaint is always advisable.

How can I check if a platform is legitimate? Verify the entity in CONSOB’s unauthorised platforms list and check whether the entity is licensed as a Crypto-Asset Service Provider under MiCA. Legitimate operators are listed in public registers.

Should I respond to a “crypto recovery service” contacting me? No. Spontaneous offers to “retrieve” crypto for an upfront fee are almost always secondary scams. Genuine recovery is run by lawyers and competent authorities.

When to contact the firm

If you have lost significant funds to a crypto scam — particularly if the funds may have ended up at a centralised exchange or if there are cross-border elements — contact the firm without delay. The first 24-72 hours are decisive: after that, on-chain dispersion makes recovery substantially harder.

Request a confidential consultation — response within one hour. 24/7 emergency line available.