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Got a Spam Text From a Crypto Exchange? What You Can Do About It

Receiving a spam text from a crypto exchange without your permission isn't just annoying, it may be illegal. Under a federal law called the Telephone Consumer Protection Act (TCPA), you could be entitled to compensation of $500 per illegal text message. If a court finds the company knowingly or willfully violated the law, that amount can increase to $1,500 per text. This law was specifically designed to protect consumers like you from unwanted marketing communications sent using automated technology. The rise of cryptocurrency has led to a surge in aggressive marketing tactics, and many exchanges use automated systems to send promotional texts. If you never explicitly agreed to receive these marketing alerts, you may have a valid claim for significant financial damages.

What Does the TCPA Say About Crypto Spam Texts?

The TCPA places strict rules on how companies can contact consumers on their mobile phones. For marketing messages, the law requires businesses to obtain your "prior express written consent" before sending you texts using an automated telephone dialing system, or autodialer. This means a company cannot simply start sending you promotional offers just because you created an account or used their service. The consent must be a clear, unambiguous agreement specifically authorizing them to send you marketing texts.

Many companies, including crypto exchanges, use autodialer technology to send out mass texts about new coin listings, price alerts, and promotional bonuses. These unsolicited crypto texts are the primary target of TCPA regulations. Importantly, the burden of proof is on the company to demonstrate that they have your valid consent. If they cannot produce a record of you clearly agreeing to receive marketing messages, any promotional texts they sent you could be a violation of federal law, putting them at risk of a TCPA lawsuit.

Is Every Crypto Text a TCPA Violation?

Not all texts from a crypto exchange are illegal. The TCPA primarily targets marketing messages, not purely informational or transactional ones. For example, a two-factor authentication (2FA) code that you requested to log in is a transactional message and is perfectly legal. However, a text message encouraging you to buy a specific cryptocurrency or advertising a new trading feature is considered marketing. If you did not provide prior express written consent for marketing, these texts are likely violations.

Furthermore, even if you did consent at one point, you always have the right to revoke that consent. The easiest way to do this is by replying "STOP" to the message. A company must honor your opt-out request within a reasonable time, which is generally considered to be around 10 business days. If you reply STOP and the cryptocurrency marketing messages continue, each text you receive afterward is a new and likely willful violation. This article is for informational purposes only and does not create an attorney-client relationship.

How Much Money Can You Get for Illegal Crypto Texts?

The TCPA provides for clear statutory damages, which means you do not have to prove you suffered financial harm to recover money. For each text that violates the law, you can seek $500 in damages. This amount can be tripled to $1,500 per violation if you can show that the company acted willfully or knowingly. For example, if a crypto exchange continued to text you after you replied "STOP," a court would likely see that as a willful violation.

These damages are calculated on a per-text basis, so the total amount can add up quickly. If an exchange sent you five illegal texts, you could be looking at $2,500 in damages, or up to $7,500 if the violations were willful. You can learn more about how these amounts are determined by reading our guide on potential TCPA payouts. The goal of these penalties is to deter companies from engaging in invasive marketing practices. Keeping track of settlements through resources like the TCPA Settlement Tracker shows that major companies regularly pay substantial sums for these violations.

Real Examples of Potential Violations

Illegal marketing texts can take many forms. They often create a sense of urgency or promise significant returns to entice you to click a link. Here are a few realistic examples of what a spam text from a crypto exchange might look like:

CoinVerse Alert: The price of $DOGE is soaring! Don't miss out on the next big move. Trade now: co-verse.ly/trade Reply STOP to opt out.

CryptoMax: Your portfolio needs a boost! We've just listed 5 new altcoins with 100x potential. See them here: bit.ly/cm-new Txt HELP for help.

(From a new number): Hey, saw you're into crypto. My exchange, BitFutures, offers 50x leverage. Sign up and get a $100 bonus! click.b-futures.io/bonus

These messages are clearly promotional. Unless you explicitly signed up to receive these specific types of alerts, they may be violations of the TCPA.

How to Check Your Phone for Violations

Many people receive illegal texts without realizing they have a potential claim. You can quickly check your phone for evidence of TCPA violations by following a few simple steps. This process can help you identify messages that could be worth $500 to $1,500 each.

Check Your Phone Right Now

Take a minute to search your phone. The evidence you need could be just a few taps away.

Open your messages and search the word STOP.

Many automated marketing texts contain language like "Reply STOP to unsubscribe." This language is often an admission that the sender is using an autodialer. If you received a text like this from a crypto exchange that you never gave permission to contact you, it could be a violation of federal law. Collecting this evidence is the first step toward holding them accountable.

Submit screenshots at SpamClaims.com

Frequently Asked Questions

Can I sue a crypto exchange for sending me texts?

Yes, you can file a lawsuit against a crypto exchange for sending you unwanted texts if those messages violate the TCPA. A successful claim typically requires showing three things: the exchange sent you marketing messages using an autodialer, they did not have your prior express written consent, and the texts were sent to your cell phone number. The federal statute of limitations for TCPA claims is four years, so you can claim damages for any illegal texts you received within that timeframe. Our consumer intake platform can help you evaluate your evidence for a potential claim.

Does having an account with a crypto exchange count as consent?

Not automatically. Simply creating an account or agreeing to a company's general terms of service does not usually count as "prior express written consent" for marketing texts. Under the TCPA, the consent must be a separate, unambiguous agreement where you specifically authorize a company to send you promotional messages. Often this is a checkbox that is separate from the main terms and conditions. If consent is buried in fine print or you were required to agree to receive marketing to use a service, it may not be valid.

What if the crypto text is a scam, not from a real exchange?

The TCPA applies to the entity that sent the text. While it can be difficult to sue anonymous Cscammers, many scam-like texts are sent by lead generation companies working for legitimate businesses. In these cases, the company that ultimately benefits from the marketing may be held liable. It is always worth investigating the source of these messages. Documenting everything is crucial, as even seemingly anonymous texts can sometimes be traced back to a responsible party who can be held accountable for the TCPA violations.

I replied STOP but still get texts. What now?

Continuing to receive texts after you have replied STOP is very strong evidence of a willful TCPA violation. Companies are legally required to honor opt-out requests promptly. Each marketing text you receive after a reasonable period following your STOP request constitutes a new, separate violation, which could be worth up to $1,500 instead of the standard $500. Be sure to save screenshots of your STOP reply and all subsequent messages you receive. This documentation is critical for building a strong case and maximizing your potential compensation.

TLDR

Submit your spam screenshots for attorney review

This article is for informational purposes only and does not create an attorney-client relationship.