Cryptocurrencies have become the new target of scammers since the day they were released.
Cryptocurrency scams are among the events that have always shaken the industry in history. In this article, we discussed the 5 most sensational crypto scams in crypto history.
Top 5 Crypto Scams in History
Cryptocurrency has continued to be the focus of attention of scammers since its existence. Crypto scams have always had a huge impact on the industry. In this article, we discussed the top 5 crypto scams.
1. BitConnect Crypto Scam
BitConnect was a lending and exchange platform powered by BitConnect Coin, founded by Satish Kumbhan. Advertisements for too many profits were licked to attract users. So much so that BitConnect’s annual ceremony in 2018 turned into a meme when investor Carlos Matos gave a performance on BitConnect that could only be described as a very enthusiastic performance.
However, BitConnect soon came under suspicion of being a Ponzi scheme. Ultimately, the system proved to be a ponzi scheme. In February 2022, the BitConnect founder was charged with running a $2.4 billion global Ponzi scheme.
2. OneCoin Crypto Scam
OneCoin is another Ponzi scheme offered as a cryptocurrency worth investing in. The story of this project run by Ruja Ignatova from Bulgaria, known as Cryptoqueen, who became one of the most notorious scammers, leaves everyone in a state of horror.
Cryptoqueen disappears in 2017, never to be seen again, after defrauding investors for $4 billion. The scammer is currently on the FBI’s most wanted list. A $100,000 bounty has been placed to help find him.
3. Bitclub Network Crypto Scam
The Bitclub network was presented to users as “the most innovative and profitable way to earn digital currency”. In the beginning, it was a community of people who wanted to make money with Bitcoin and other currencies.
However, it didn’t take long for the Bitclub Network to be revealed to be a scam scheme. According to the IRS, “BitClub Network was a fraudulent scheme that demanded money from investors in exchange for shares of so-called cryptocurrency mining pools and rewarded investors for attracting new investors to the scheme.”
Bitclub network disappeared, defrauding its users exactly 720 million dollars.
4. Axie Infinity Hack
In July 2022, the popular win-win game Axie Infinity was hacked. A fraudulent job offer is believed to have led to the attack, and it is believed to be linked to Lazarus, a known cybercrime group. Hackers took control of the network and extorted $600 million from users. The US government managed to get back $30 million and refunded players who lost their funds with Sky Mavis.
5. Pincoin Scam
Pincoin was a cryptocurrency project focused on asset sharing. It promised an incredibly high ROI of up to 312 percent. This situation did not cause any question marks in users, but this situation was quite meaningless. In addition, the project had a recruitment system and multi-level structure that screamed the Ponzi Scheme. This is proven to be true by financial fraud guide Behindmlm. In the Pincoin Scam, $600 million was stolen from investors, making it one of the biggest scams in Pincoin history.
Since the day cryptocurrencies existed, frauds have not been missing from the agenda. Investors should always consider several situations.
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