TOP 11 LARGEST CRYPTO SCAMS EVER
The cryptocurrency world is a land of opportunity, but unfortunately, it also attracts fraudsters. Here’s a deeper dive into 11 of the biggest crypto scams to ever happen, helping you stay vigilant in the crypto space.
- FTX
- Details: FTX collapsed in November 2022 due to the misappropriation of billions in customer funds.
- Outcome: Founder Sam Bankman-Fried received a 25-year sentence for fraud.
- Luna and TerraUSD
- Details: The crash in May 2022 wiped out $60 billion.
- Outcome: Founder Do Kwon was arrested in March 2023.
- QuadrigaCX
- Details: The death of founder Gerald Cotten in 2018 made $215 million inaccessible. Investigations revealed it was a Ponzi scheme.
- Outcome: Ongoing investigations.
- Africrypt
- Details: In 2021, founders Ameer and Raees Cajee stole 70,000 BTC.
- Outcome: Under investigation for money laundering in Switzerland.
- SafeMoon
- Details: Executives withdrew over $200 million in 2021 for personal use.
- Outcome: Charged with fraud by the SEC.
- BitConnect
- Details: Disappeared in 2018 in an exit scam.
- Outcome: Investors lost everything; under investigation.
- Pincoin and iFan
- Details: Raised $660 million in 2018 through a Ponzi scheme by Modern Tech. The team vanished after collecting funds.
- Outcome: Ongoing investigations.
- Celsius Network
- Details: Paused withdrawals and filed for bankruptcy in 2022, owing $4.7 billion.
- Outcome: Plans to return assets to customers.
- Centra Tech
- Details: Raised $25 million in 2017 with false promises.
- Outcome: Founders sentenced to prison.
- Mining Max
- Details: Defrauded investors of $250 million in 2017. Only $70 million was spent on mining, impacting 18,000 investors.
- Outcome: Ongoing investigations.
- OneCoin
- Details: Revealed as a Ponzi scheme in 2016, defrauding investors of $4 billion.
- Outcome: Founder Ruja Ignatova, the “Cryptoqueen,” disappeared and is still at large.
Amount Lost in Top Crypto Scams
| Year | Amount Lost (USD) | Scam Name |
|-------|-------------------|--------------------|
| 2016 | 4 Billion | OneCoin |
| 2017 | 25 Million | Centra Tech |
| 2017 | 250 Million | Mining Max |
| 2018 | 215 Million | QuadrigaCX |
| 2018 | 660 Million | Pincoin and iFan |
| 2018 | Unknown | BitConnect |
| 2021 | 200 Million | SafeMoon |
| 2021 | 70,000 BTC | Africrypt |
| 2022 | 60 Billion | Luna and TerraUSD |
| 2022 | 4.7 Billion | Celsius Network |
| 2022 | Billions | FTX |Amount Lost in Top Crypto Scams (USD)
|------------------------------------------------------|
| |
| 60 Billion - Luna and TerraUSD (2022) |
| 50 Billion |
| 40 Billion |
| 30 Billion |
| 20 Billion |
| 10 Billion - Celsius Network (2022) |
| 9 Billion |
| 8 Billion |
| 7 Billion |
| 6 Billion |
| 5 Billion |
| 4 Billion - OneCoin (2016) |
| 3 Billion |
| 2 Billion |
| 1 Billion - FTX (2022) |
| 215 Million - QuadrigaCX (2018) |
| 200 Million - SafeMoon (2021) |
| 250 Million - Mining Max (2017) |
| 25 Million - Centra Tech (2017) |
|------------------------------------------------------|How to Avoid Crypto Scams
- Do thorough research: Always research the crypto project, its team, and its history.
- Verify team credentials: Ensure the team has a credible background.
- Be wary of unrealistic promises: If it sounds too good to be true, it probably is.
- Diversify your investments: Spread your investments across various assets.
- Never store all funds in one place: Use multiple wallets and storage solutions.
Staying vigilant and informed can help you avoid falling victim to these scams.
