RealOpen Certified · Lesson 3 of 8

Qualifying crypto buyers and avoiding scams

After this, you can tell a legitimate crypto buyer from an unqualified one and from a scam victim in the first conversation, and ask for verification without accusing anyone.

After this lesson you can

  • Sort a prospect into one of three kinds: holds crypto, has been promised crypto, or is being robbed and does not know it.
  • Recognize the mysterious-partner story and the advance-fee demand, and explain why the prospect's sincerity is not evidence of buying power.
  • Tell a legitimate restriction (staked, exchange hold, multisig, entity-owned, vesting) from an excuse, by asking for the verifiable fact behind it.
  • Run the ten-question first conversation and place the answers on the green, yellow, red screen.
  • Ask for verification before showings, in words that do not accuse anyone of lying.

By Johnny Schiro, licensed real estate broker in Texas, New York and Florida. Updated 2026-10-10.

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Three kinds of prospect

Every prospect who says "I'm buying with crypto" is one of three people.

  • The holder. The crypto exists, they control it, and they can tell you what it is and where it is without looking anything up. Verification is a fifteen-minute errand to them. Most of this course is about serving this person well.
  • The unqualified buyer. The crypto may exist, but it is not theirs to spend today or it is not enough. Staked with a two-week unlock, pledged on a loan, owned by an LLC that needs a second signature, or simply $300,000 short. Nothing dishonest here. The deal has a timing or a size problem, and you solve it or you wait.
  • The victim. The crypto does not exist, or exists in a wallet they do not control, and someone has spent months convincing them otherwise. They are sincere. They have paperwork. They may have already paid money to "release" funds that were never coming. The house is where the story collides with reality, and you may be the first person to notice.

The job of the first conversation is to find out which one you have, and the only reliable way is to ask about facts, not to judge the person. Sincerity, confidence, a nice car and fluent vocabulary are present in all three groups. Scammers coach their victims well.

The verification-first rule

Here is the operating rule for this whole credential: do not invest substantial time showing property to a crypto buyer whose purchasing power has not been verified or otherwise demonstrated.

This is not an insult to the buyer. It is the same standard you apply to a financed buyer (pre-approval first) and to a cash buyer (proof of funds first). The difference is that a crypto proof of funds is a verification, not a letter from a bank, and a screenshot is not one.

The rule has a second half that matters just as much: when you are uncertain, the answer is verification, not a better read of the person. You will not out-think a fraud that has survived a year of the buyer's own scrutiny. Ask for the fact that settles it.

The first conversation: ten questions

Ask these in order, plainly, the way you would ask a financed buyer about their lender. Write the answers down.

#QuestionRoutine answerDig deeperStop and verify first
1What crypto do you currently own?Named coins you have heard ofA token you cannot find anywhere"It's complicated" or a token they created
2Roughly what is it worth?A number, with a shrug about the price movingA precise figure to the dollar quoted from a platformA number they have never checked themselves
3Where is it held: exchange, wallet you control, custodian, or something else?Names a wallet or a well-known exchangeA platform you have never heard ofCannot say, or "my partner handles that"
4Do you personally control it, or does someone else?"I do"An LLC, a trust or a custodian with authorized signersA partner, advisor, trader or broker controls it
5Is it available today, or expected from another party?AvailableStaked, vesting or on an exchange hold, with a dateExpected: a distribution, a payout, a release
6If someone else controls it, what is their relationship to this purchase?Not applicableA business partner with signed documentsAn investor, trading associate or overseas contact
7Is any of it staked, locked, pledged or restricted?"No" or "yes, this much, until this date""Some of it, I'd have to check""It's locked until I pay the release fee"
8How much of the purchase will be crypto?A share they can stateDepends on what a partner releasesAll of it, from funds not yet received
9Is this all cash or financed?A clear answerNot sure yetDepends on the funds arriving
10Can the available funds be verified before we start showings?"Sure, how?""What does that involve?"Repeated postponement, or a reason it cannot be done

A holder answers nine of these in two minutes and asks you what verification involves. A victim answers them with a story, and the story has a partner in it.

The mysterious partner

This is the scenario you will meet more than any other.

Scenario. A prospect wants a $2.4 million home. He has an LLC, formed eight months ago with a business partner he met online, who trades crypto. He has signed investment and partnership agreements. He receives statements showing the LLC's account at more than $5 million. The partner has promised him a distribution of $3 million in Bitcoin, which is "being processed." He has been told the final step is a compliance fee of $38,000, or a tax that must be paid before the exchange will release the funds. He has already paid two smaller fees. He has been talking to the partner, by text and video call, for over a year. He is calm, organized and sure.

Nothing in that paragraph is evidence of buying power. An LLC takes an afternoon to form. Agreements can be signed by anyone. Statements can be generated by anyone with a website. A video call proves a person exists, not that the money does. The one thing that would prove buying power, a verification of a wallet the buyer himself controls, is the one thing that keeps getting postponed.

Two mechanics make these schemes work:

  • The fabricated platform. The balance lives on a website or app the scammer controls. It shows any number they like, pays small "withdrawals" early to build trust, and then invents a fee when a large withdrawal is requested. Every fee paid is simply gone.
  • The real transaction, wrong wallet. Sometimes the victim is shown genuine blockchain transactions, on a real explorer, into a real address holding real money. The address is not theirs. They are being shown someone else's wallet and told it is theirs, or told it will be theirs once the fee is paid.

The prospect's sincerity is real. That is exactly why it is not evidence. Your job is not to decide whether he is honest. It is to ask for verification of funds he controls today, and to notice that it cannot be produced.

Fees to release money that does not exist

A payment demanded before promised money can be delivered is the oldest fraud there is, and crypto gave it new vocabulary. Teach yourself to hear these as one pattern:

  • Crypto "awaiting release," "pending clearance" or "in processing."
  • An activation payment, an account upgrade, or a verification deposit.
  • A blockchain unlocking fee, a wallet synchronization charge or a "node" fee.
  • A tax that must be paid before a withdrawal is permitted.
  • An AML or compliance clearance fee.
  • Gas fees wildly out of proportion to a real network fee.
  • An escrow release fee, an insurance fee or a "regulatory bond."
  • A request for an additional deposit before a withdrawal is permitted.
  • Funds trapped on a trading platform until the balance reaches a threshold.

Here is the distinction that lets you sort these in a sentence. A real network fee is paid from the sending wallet to the network itself, in the network's coin, and it is small: cents to tens of dollars on most networks, more on Bitcoin when the network is busy, never a percentage of the balance. A real exchange withdrawal requirement is a daily limit, an identity check or a holding period, and it never involves sending money to a third-party wallet. A fabricated fee is a demand to send thousands of dollars to an address controlled by someone else so that millions can be unlocked. Real money does not work that way. No exchange, custodian or blockchain charges a fee to a separate wallet to release a balance. If a buyer describes one, the balance is not real, and every dollar sent toward the fee is lost.

Other patterns you will meet

Stay inside the real estate transaction. You are not running a cybersecurity course. These are the patterns that show up between a first call and a closing.

  • Fake exchanges and investment platforms. Slick websites and apps with support chat, charts and statements. Tell: the buyer cannot withdraw to a wallet they control without a fee or a threshold.
  • Fabricated balances and screenshots. Trivial to produce. Tell: the buyer offers a screenshot in place of verification, or a balance that never moves.
  • Fake proof-of-funds letters. A letter on a letterhead, sometimes RealOpen's. Tell: the contact details on the letter do not match the issuer's published ones, or the issuer cannot confirm it. Module 4 covers how a RealOpen letter is checked.
  • Impersonated OTC desks, escrow companies and institutions. A "desk" or "escrow" that asks the buyer to send crypto to it directly. Tell: a deposit address that did not come from the buyer's own RealOpen account, or a request to wire anywhere but the title company's confirmed instructions.
  • Wallet-draining websites and malicious signing requests. A link that asks the buyer to "connect wallet" and approve a transaction. Tell: any request to sign or approve something to "verify," "claim" or "unlock." Verification with RealOpen happens inside the buyer's own dashboard, with a plain message or a small transfer the buyer initiates.
  • Seed phrase and private key theft. Any request for the phrase, by anyone, for any reason: "support," "recovery," "backup," "verification." Tell: the request itself. No legitimate party ever needs it.
  • Business email compromise and substituted wiring instructions. An email, often from a real-looking address, with "updated" instructions for escrow. Tell: a change by email, especially near funding. Confirm by phone at a number you already trust before anyone acts.
  • Worthless tokens dressed as assets. A token with a familiar-sounding name, or a "stablecoin" nobody has heard of, in a wallet the buyer does control. Tell: you cannot find it on any major exchange. Real control of a worthless asset is still zero buying power.
  • Romance, relationship and confidence scams. The partner, mentor or new friend who taught the buyer to invest. Tell: the money, the advice and the platform all trace back to one person the buyer has never met in person.
  • Fraudulent mining and staking platforms. Guaranteed yields, daily payouts, a balance that climbs. Tell: withdrawals need a fee or a bigger deposit.
  • Recovery scams. A "firm" that promises to recover funds a victim already lost, for an upfront fee. Tell: upfront payment. Victims are targeted twice.

Legitimate restrictions versus excuses

Not every inaccessible balance is a fraud. Plenty of real wealth is temporarily locked, and a buyer who says so is being candid, not evasive. The difference is whether the assets exist, who legally owns them, who controls them, and what objectively verifiable condition governs their availability.

SituationLegitimate whenThe verifiable factWhat to do
StakedThe position is in a wallet the buyer controls, with a known unstaking periodThe staking position shows on the ledger and on a RealOpen verificationCount it, note the lead time, plan funding around the unlock
Exchange withdrawal hold or limitThe account is the buyer's, at a known exchangeWithdrawals to the buyer's own wallet work, just slowlyStart withdrawals early; verify the receiving wallet
Multisignature walletThe buyer is one of the signers and can name the othersA transfer from the wallet can be made with the required signaturesVerify by transfer; confirm the signers are available for funding
Institutional custodyA regulated custodian with authorized signers, including the buyerThe custodian can produce statements and move funds on instructionPreferred: move the assets to a wallet the buyer controls and verify it. Otherwise RealOpen's manual path: a custodian statement reviewed by staff. Ask who can instruct and how long a withdrawal takes
VestingTokens from an employer or project on a published scheduleThe vesting contract or grant letter, with datesCount only what has vested; the rest is not buying power yet
DeFi positionThe buyer deposited it and can withdraw itThe position shows at the buyer's address; a withdrawal can be madeAsk for the withdrawal before the proof of funds is needed
Held by an LLC or trustThe buyer is a member, manager or trustee with authorityThe operating agreement or trust instrument, and the person holding the keysMatch the signer on the contract to the authority over the funds. Module 4

Now the same table, from the other side. A story has no verifiable fact behind it: the partner will release it, the platform is processing it, the tranche unlocks next week, the advisor has it, the fee has to be paid first. Each is a promise about the future made by someone other than the buyer. A restriction is a present fact that can be checked.

A buyer who owns $2 million in staked Ether is not the same as a buyer expecting $2 million from a partner next Thursday, even though both say "I can't move it right now."

Green, yellow, red

Use this as a screen, not a verdict. Green means proceed. Yellow means proceed with specific questions answered first. Red means stop showing property until verification exists. None of these is a finding that anyone committed fraud.

GreenYellowRed
The assetsExist and are controlled by the buyer todayExist but are temporarily restricted: staked, on an exchange hold, vestingAre promised, pending, or exist only on screenshots and statements
Who controls themThe buyerAn entity, a custodian or a multisig the buyer is part of, with documentation to gatherA partner, advisor, trader or contact the buyer has not met in person
Where they areA named wallet or well-known exchangeAn exchange with limits, or an institutional account needing authorizationThe buyer cannot name the wallet, exchange or custodian, or names a platform you cannot find
What it would takeVerification, which the buyer welcomesDocuments and timeAn upfront payment to anyone
The asset itselfA coin or token on RealOpen's accepted listA less common but real asset, to check with RealOpenA token you cannot find, or one the buyer or partner created
VerificationAvailable nowAvailable once the restriction clears or the authority is documentedPostponed repeatedly, or declared impossible
Purchasing powerCovers cash to close with a cushionCovers it narrowly, or once the restricted part unlocksDepends on money not yet received

A decision tree

  1. Does the buyer personally control crypto today?
    • Yes: go to 2.
    • No, it is held by an entity or custodian the buyer has authority over: yellow. Gather the documents, then go to 2.
    • No, it is expected from someone else: red. Stop at the next step.
  2. Is any payment required before the funds can be used?
    • A network fee paid from the buyer's own wallet, or an exchange's ordinary limits: fine, go to 3.
    • A fee, tax, deposit or charge paid to anyone else to release the balance: red. The balance is not real. Treat the buyer the way you treat one who cannot get approved for a loan: no showings until there is a proof of funds letter from funds the buyer controls.
  3. Can the funds be verified now?
    • Yes: green. Send the buyer to get verified today, before showings.
    • Not yet, because of a restriction with a date and a fact behind it: yellow. Verify what can be verified now, count the rest with its lead time.
    • Not now, not later, or the buyer keeps putting it off: red. No showings until it changes.
  4. Does verified purchasing power cover cash to close with room for price movement?
    • Yes: write offers.
    • Narrowly: write offers with the cushion in mind, or adjust the price range.
    • No: adjust the search, or wait for the restricted part to clear.

Asking for verification without accusing anyone

You will use this script on honest people far more often than on anyone else, so it has to sound like a normal part of your process, because it is.

"Before I set up showings for any buyer, I get their financing or their funds confirmed. For a bank buyer that's a pre-approval. For crypto it's a quick verification: you prove your identity and show that the wallet is yours, and it produces a proof of funds letter that goes out with your offer. It takes about fifteen minutes and your crypto doesn't go anywhere. Can you do that this week, and then we'll look at homes?"

If the buyer asks why: "Because a screenshot can't be checked and a seller's agent won't take one. The letter can be."

If the buyer says the funds are coming from a partner: "Then let's verify the partner's wallet, or wait until the funds are in yours. I can't show homes against money that isn't in your control yet, and no listing agent will take an offer on it either."

If the buyer describes a fee: "That's not how exchanges or blockchains work. Nobody charges a fee to a separate wallet to release a balance. Here's where I land, and it's the same thing I tell a buyer waiting on loan approval: I can show homes once the funds are in a wallet you control and verified. When that happens, call me first."

What you never ask for, and what you never do

  • Never ask for, accept or store a private key, seed phrase, exchange password or two-factor code. Not to "check the balance," not for safekeeping, not for any reason.
  • Never take custody of a buyer's crypto, receive it on their behalf, or give them your own wallet address.
  • Never send a buyer a deposit address. The only addresses a buyer sends to come from their own RealOpen account, and escrow's wire instructions come from escrow, confirmed by phone.
  • Never recommend a platform, a trader or a "recovery" service.

When the money isn't there

Sometimes the ten questions make it clear that the money the buyer is counting on is not coming, or is not theirs. You are not an investigator, and it is not your job to prove that to them. Handle it the way you handle a buyer who cannot get approved for a loan.

  • Say what every buyer hears: "I can show homes once you have a proof of funds letter from funds you control. Until then, I can't." No diagnosis, no verdict on the partner or the platform.
  • Do not argue the details. The buyer has been trained to defend both, and you will not win the argument or the client by trying.
  • Do not recommend a platform, a trader, or anyone who promises to recover money.
  • Leave the door open. Some of these buyers hold real assets too, and some come back as real buyers once the story ends.

Then move on. The standard is the same one you apply to every buyer, and it protects your weekends and your buyer alike.

RealOpen Certified is a private designation issued by RealOpen. It is not continuing education credit and is not issued or endorsed by any state licensing authority. How certifying works.