Free Forex Signals

Cryptocurrency’s rise in popularity has unfortunately been accompanied by numerous fraudulent schemes.

Here are 10 of the most notorious scams that have left investors with massive losses:

—

1. OneCoin (2014-2017)

One of the largest crypto scams, OneCoin was a massive Ponzi scheme led by Ruja Ignatova. Promised to be the next Bitcoin, it lured investors with fake documents and claims of large returns. Estimated losses stand at over $4.4 billion.

2. BitConnect (2016-2018)

BitConnect promised high returns by using a trading bot to trade Bitcoin. It became infamous for its aggressive marketing and multi-level referral system, which led many to invest. It collapsed in 2018, leaving investors with significant losses.

3. Mt. Gox (2014)

Once handling 70% of global Bitcoin transactions, Mt. Gox, a Japan-based exchange, declared bankruptcy after losing 850,000 Bitcoins, worth about $450 million at the time. The hack raised questions about exchange security and transparency.

4. PlusToken (2018-2019)

PlusToken was a high-yield investment program that promised users huge profits. It raised over $3 billion from investors in a scam that used Ponzi mechanics. The platform eventually collapsed, and the founders disappeared with the funds.

5. QuadrigaCX (2018-2019)

Canadian exchange QuadrigaCX’s CEO, Gerald Cotten, mysteriously died in 2018, taking the passwords to the exchange’s cold wallets with him. As a result, users lost access to $190 million in crypto assets. Questions remain about whether Cotten’s death was part of a larger fraud.

6. BitPetite (2019)

BitPetite was a fake cryptocurrency investment platform that promised high returns with little risk. After accumulating funds, the site abruptly disappeared, leaving investors without recourse.

7. WoToken (2015-2018)

Similar to PlusToken, WoToken was a Ponzi scheme that targeted Chinese investors. It promised returns for staking crypto assets. In total, the scam raised over $1 billion before it was exposed in 2018.

8. My Big Coin (2013-2018)

My Big Coin offered a cryptocurrency with no blockchain backing it up. The founder, Randall Crater, was convicted of fraud after tricking investors into thinking it was a legitimate currency. Losses from this scam totaled $25 million.

9. WoWToken (2019)

Not to be confused with WoToken, this scam involved a fake token in the gaming world that claimed to allow players to earn real-world rewards. After promising large returns, the creators vanished with millions of dollars.

10. Plustoken (2018-2020)

Plustoken operated under the guise of a high-yield investment program, promising huge returns to investors. It is estimated that over $5 billion was defrauded from investors before the founders disappeared.

—

These scams highlight the dangers of the cryptocurrency world. Despite the vast potential of blockchain and digital assets, they continue to attract fraudsters. Always do thorough research, use trusted exchanges, and be wary of offers that seem too good to be true.