The 10 biggest crypto frauds in crypto history

The 10 biggest crypto frauds

 The human race seems to have been scamming since the beginning. At least since modern civilisation. With every new finding and technology, scams have seemed to abound. Crypto has not been exempt from this trend. Crypto brought about the realization that it was easy to copy legitimate projects' open source code and create new cryptocurrencies. Some of these are good and some are not.

Initial coin offerings - or ICOs - that launched thousands of cryptocurrencies during the 2016-2018 crypto bubble have been found to be either scams or colossal failures.

It is estimated that 98% of the thousands of crypto projects of those days lost their investors' money. And yet, some stand out, scamming hundreds of millions and even billions from their victims around the globe.

The 10 biggest scams are as follows:

Here we'll discuss The 10 biggest crypto frauds in crypto history

1. Onecoin

Onecoin exploded into public consciousness with the BBC’s Missing Cryptoqueen podcast. In what is now believed to be the most significant crypto scam in history, estimates put the total amount taken at $25 billion. Authorities shut it down in 2017, the main perpetrators were arrested, and its founder has vanished: on the run or dead. Incredibly, this fraudulent enterprise has malignly endured. Most shockingly of all, Onecoin was a giant hoax – there was never any cryptocurrency involved.

OneCoin was a cryptocurrency project that operated as a pyramid scheme and was later exposed as a fraud. The company was founded in 2014 by Ruja Ignatova and claimed to have created its own cryptocurrency that would revolutionize the financial industry.

The company used a multi-level marketing scheme to attract investors, promising them high returns on their investment if they recruited new members to the platform. The company claimed to have a unique blockchain technology that allowed it to process transactions faster and more efficiently than other cryptocurrencies.

However, the company's claims turned out to be false, and its cryptocurrency was never listed on any reputable exchange. The company also failed to provide any evidence of its blockchain technology, and the technology was later found to be non-existent.

In 2017, the company was exposed as a Ponzi scheme and was shut down by authorities in several countries. The founder, Ruja Ignatova, was charged with wire fraud, securities fraud, and money laundering, and is still at large.

The OneCoin scam highlights the importance of doing your due diligence and research before investing in any cryptocurrency project. It is important to use reputable exchanges and wallets to store and manage your cryptocurrency investments, and to be wary of any investment opportunity that promises high returns with little to no risk.

2. Bitconnect

Bitconnect was a cryptocurrency lending and exchange platform that operated from 2016 to 2018. The company claimed to offer investors a high-yield investment program where they could earn daily returns of up to 1% by investing in its lending program.

However, the company was later exposed as a Ponzi scheme and shut down in January 2018. The scheme had defrauded investors of more than $2 billion in total, making it one of the largest cryptocurrency scams in history.

The company used a multi-level marketing scheme to attract investors, offering them commissions for recruiting new members to the platform. The company also created its own cryptocurrency called Bitconnect Coin (BCC) which was promoted as a safe investment opportunity.

However, the BCC coin turned out to be worthless, and the company's lending program was a fraud. The company used new investor funds to pay off earlier investors, and when the scheme collapsed, many investors lost their entire life savings.

The Bitconnect scam highlights the importance of doing your due diligence and research before investing in any cryptocurrency project. It is important to use reputable exchanges and wallets to store and manage your cryptocurrency investments, and to be wary of any investment opportunity that promises high returns with little to no risk.

One of the most brazen and famous crypto scams of all time is Bitconnect. Multi-level marketing-led Ponzi scheme Bitconnect scammed investors of $4 billion, luring them in with claims of an unbeatable trading algorithm that was, perhaps presumably, never in existence. Incredibly, they didn't just scam their victims once; they launched a second scam ICO, BitconnectX, just as their first project crashed.

3. Bitclub Network 

 Bitclub Network is the biggest crypto mining scam of crypto history same like Onecoin and Bitconnect, this Ponzi scheme used good marketing and salesmen to bring in $722 million. Initially, BCN promised investors that it would send them guaranteed profits as soon as it acquired bitcoin mining equipment. As a result, the videos it used of mining equipment were from another mining farm, so it appears to have been a Ponzi scheme from the get-go.

Bitclub Network was a fraudulent cryptocurrency mining operation that operated from 2014 to 2019. The company claimed to provide investors with an opportunity to mine Bitcoin and other cryptocurrencies by investing in its mining pools.

The company used a multi-level marketing scheme to attract investors, offering them the opportunity to earn commissions by recruiting new members to the network. However, the company was found to be running a Ponzi scheme, using new investor funds to pay off earlier investors.

In December 2019, three of the company's founders were arrested and charged with conspiracy to commit wire fraud. The U.S. Department of Justice (DOJ) accused the founders of defrauding investors of more than $722 million.

The DOJ alleged that the company had never owned the mining equipment it claimed to have, and that the mining returns paid to investors were fraudulent. The founders of the company were also accused of using fraudulent marketing tactics to lure in new investors, such as claiming that the company had a secret mining technology that was more profitable than other mining operations.

The Bitclub Network scam is a cautionary tale about the risks associated with investing in cryptocurrency mining operations that make unrealistic claims or use fraudulent marketing tactics. It is important to do your due diligence and research any investment opportunity before investing your money, and to use reputable exchanges and wallets to store and manage your cryptocurrency investments.

4. Quadriga

QuadrigaCX was a Canadian cryptocurrency exchange that was shut down in early 2019 after the sudden death of its CEO, Gerald Cotten. The exchange claimed to have lost access to its customers' funds, which were reportedly stored in cold wallets that only Cotten had the access keys for.

However, an investigation by Ernst & Young, the court-appointed monitor of the bankruptcy case, uncovered evidence that suggested the funds had been mismanaged and that the exchange was running a Ponzi scheme.

Ernst & Young found that the exchange had been operating for years without proper accounting records or internal controls. The company was also found to have used customer funds to pay for its own operating expenses and to have created fake accounts to inflate its trading volume.

It was estimated that the company had defrauded investors of more than $190 million, making it one of the largest cryptocurrency scams in history.

The QuadrigaCX scam highlights the importance of using reputable cryptocurrency exchanges and wallets to store and manage your investments. It is also important to do your due diligence and research any exchange or investment opportunity before investing your money.

initially, Quadriga was the leading and trusted crypto exchange in Canada, whose founder is infamously believed to have faked his own death. The company was found to have been a scam from the beginning and the founders had run other scams before.

There are still calls for his body to be exhumed to have some proof that he died, even though he was the only one with access to the private keys that held C$250 million of its users' crypto when he mysteriously died.

5. Pincoin and iFan

Pincoin & iFan is the Vietnamese projects that scammed round about $660 million from their own investors using persuasive sales events and and different marketing strategies.

Pincoin and iFan were two fraudulent cryptocurrency projects launched by a company called Modern Tech in Vietnam in 2018. The projects were marketed as multi-level marketing schemes that promised high returns to investors who referred other people to the projects.

The company promised investors returns of up to 40% per month and used aggressive marketing tactics to lure in new investors. However, it was later revealed that the projects had no real technology or products behind them and were simply Ponzi schemes designed to defraud investors.

After collecting millions of dollars from investors, the company abruptly shut down its offices and fled the country, leaving investors with no way to recover their money. It was estimated that the company had defrauded investors of more than $660 million.

The Pincoin and iFan scams are a cautionary tale about the risks associated with investing in cryptocurrency projects that make unrealistic claims or use fraudulent marketing tactics. It is recommended to use reputable exchanges and wallets to store and manage your cryptocurrency investments.

6.Incredibly

Incredibly Plexcoin promised there investors returns of 1,354% (which is also huge profit near to impossible) before being shut down by the SEC & ordered to repay $20 million in stolen funds.

Incredibly was the name of a cryptocurrency project launched in 2017 by a company called PlexCorps. The project promised investors returns of up to 1,354% and claimed to have developed a revolutionary new technology that would revolutionize the cryptocurrency industry.

However, the project was later revealed to be a fraudulent scheme that had no real technology or products behind it. In December 2017, the U.S. Securities and Exchange Commission (SEC) charged the company and its founder, Dominic Lacroix, with fraud and ordered them to pay a $20 million penalty.

The SEC accused the company of misleading investors and making false claims about the potential returns and technology behind the project. The company was also accused of using fraudulent marketing tactics to lure in investors, such as paying celebrities to promote the project on social media.

In February 2018, a Canadian court also ordered the company to pay a $9 million fine and permanently barred Lacroix from participating in any future securities offerings. The company's assets were frozen, and the project was shut down.

The Incredibly/Plexcoin fraud is a cautionary tale about the risks associated with investing in cryptocurrency projects that make unrealistic claims or use fraudulent marketing tactics.

7. Savedroid 

Despite not being a scam per se, Savedroid's founders shut down their office and social media before tactlessly posing in airports and beaches pretending to have been exit scammed, only to return and say it wasn't. Regardless of what happened, the project's tokens crashed in value, resulting in over $50 million in losses for its investors.

The Savedroid crypto scam was a fraudulent scheme launched by a German company called Savedroid in 2018. The company claimed to offer an easy-to-use platform for investing in cryptocurrencies, but it was discovered that the entire project was a scam.

In April 2018, the company's CEO, Yassin Hankir, posted a message on Twitter that said "Thanks guys! Over and out… #savedroidICO." The message led many to believe that the company had run off with investors' money, leading to panic in the crypto community.

However, it was later revealed that the message was a publicity stunt meant to draw attention to the issue of fraud in the cryptocurrency industry. The company claimed that it was trying to raise awareness about the risks associated with investing in ICOs (Initial Coin Offerings) and the need for better regulations.

The stunt was widely criticized as irresponsible and misleading, as it caused panic among investors and damaged the reputation of the cryptocurrency industry as a whole. The company later apologized for the stunt and refunded investors' money.

The Savedroid crypto scam highlights the importance of doing your due diligence and researching any investment opportunity before investing your money. It is also important to be wary of any investment opportunity that promises unrealistic returns or uses misleading marketing tactics to lure in investors.

8. Bitcoin Doublers

Despite not being one of the biggest scams on its own in terms of stolen value, Bitcoin Doublers are bad cumulatively. They claim to double the value of anyone who sends in their cryptocurrency. It sounds great, but I would be shocked if they didn't steal the crypto we sent.

Bitcoin doublers are a type of fraudulent scheme that promises to double your Bitcoin investment in a short period of time. These schemes typically ask users to send Bitcoin to a specific wallet address and promise to return double the amount of Bitcoin within a few hours or days.

However, these schemes are almost always fraudulent and are designed to steal your Bitcoin. The scammers behind these schemes usually take the Bitcoin that users send to them and disappear, leaving the victims with no way to recover their funds.

Bitcoin doubler scams often use fake testimonials and positive reviews to lure in unsuspecting victims. They may also offer referral bonuses to incentivize users to bring in more investors.

To avoid falling victim to a Bitcoin doubler scam, it is important to do your due diligence and verify the authenticity of any investment opportunity. Be wary of any scheme that promises unrealistic returns in a short period of time and always research the company or individual behind the investment offer. It is also recommended to use reputable exchanges and wallets to store and manage your Bitcoin investments.

9.Twitter and social media offers 

Twitter and social media offers as with Bitcoin Doublers, this is not only a one time scam but scammers impersonating celebrities and social media accounts so people fall for them. If someone sends them money, they promise to send back double the crypto or whatever offer they make. The celebrities who use these scams are unaware of them.

10. Thodex 

Thodex was a Turkish cryptocurrency exchange that was involved in a fraud scandal in 2021. The company's CEO, Faruk Fatih Özer, was accused of fraudulently stealing millions of dollars worth of cryptocurrency from its customers.

Özer allegedly fled to Albania with the funds, leaving behind a note claiming that the exchange was shutting down for maintenance. However, customers were unable to access their funds and suspected that something was amiss.

The incident resulted in the arrest of 62 people, including Özer's brother and sister, on charges of money laundering and fraud. The Turkish government also launched an investigation into the matter, and the exchange's operations were halted.

The Thodex fraud scandal highlights the risks associated with using cryptocurrency exchanges that do not have proper regulations or security measures in place. It is essential to do your due diligence and choose a reputable and trustworthy exchange to protect your investments

With offers of free memecoin Doge, the founder of this Turkish crypto exchange lured investors to put $2.2 billion into his exchange before exit scamming with it all.