Topic: Biggest Scam History in the Cryptocurrency - page 2. (Read 315 times)
There are hundreds or thousand more but when there are scam coins exposed or crash it never creates a huge impact on the market, what makes the biggest impact in the market is when exchanges scam their users, because the scam many coins and amounts to hundred millions of dollars or even billions, the latest is FTX, this one will have a lasting impact and still create havoc in the market, it will take many years before many traders forget this biggest fiasco.
Since cryptocurrency users continue to increase, many people are exposed to it. At the same time, there is also an increase in scams in the market, which usually always fall victim to the newbies in the crypto space. And this is happening because nothing is happening in the regulation here in cryptocurrency. So crypto is one of the high-risk assets in the market. So the opportunity here is way higher than we expect. "If there is an opportunity there is always a risk"
From those scams that you have listed i only heard of Bitconnect and onecoin before. There even was a pretty well made documentary about the woman behind onecoin last week in german television i have not watched it yet but i definitely want to. What i heard though was that onecoin really was a scam from the first minute. The token never existed, the blockchain never existed. Onecoin was just created in order to rip people off.
The bitconnect thing happened when i already were a little bit interested in the crypto space myself and i still remember watching that weird Bitconnect meeting with the moderator guy who quickly became a meme. I still don't understand though how people could really think that bitconnect was a legit project. Paying such high interest is just not sustainable. Even newcomers should know that.
I think we can add another coin. Savedroid aka Scamdroid: And its gone! The website is offline for several hours that day in 2018. On the website only a picture of South Park with the text "And it's gone". So it could be worse? This was an PR-Gag and for me one of the most stupidest things in crypto scams. Then they send holiday greetings via Twitter... how cheeky. Over $40,000,000 was raised in the ICO and the worst thing about it is that they are still active today. Not so much money has been scammed as the others, but how they have done it, so worse. German Thread:[VORSICHT möglicher SCAM] Frankfurter Fintech Startup Savedroid startet ICO
I remember this Onecoin, I got into a heated argument with one of the recruiters of this scam company. He flared up when I stated that Onecoin is a Ponzi scheme company. He wanted me to prove it and I stated the red flags about the company. The person got more agitated when I stated the red flags one by one. His only defense is that the company is paying and he earned a huge amount of money from it already. I just told him, to enjoy the money while it last, he will be enjoying his stay in jail if he doesn't stop recruiting people to his Ponzi company. Then after some months, Onecoin was labeled a Ponzi scam company, the person is lucky that not one of the people he invited filed a complaint against him.
The Ponzi scheme is destined to be a scam, so yeah we can say that the Ponzi scheme is a scammy scheme to rob people of their money. I think a project that rely solely on NFT and token staking is one big Ponzi scheme. Because there are no funds to support the market 1:1.
I consider all Ponzi schemes as a big ball of scam, every one of them so if you like me that wants complete security then you would avoid them totally turning deaf to all their BS preaching.
Also I am skeptical about most new projects not that they are all scams but many go to buy shillers, run death trap giveaways, over their budget promises, so always research on them before joining in.
Also I am skeptical about most new projects not that they are all scams but many go to buy shillers, run death trap giveaways, over their budget promises, so always research on them before joining in.
The Ponzi scheme is destined to be a scam, so yeah we can say that the Ponzi scheme is a scammy scheme to rob people of their money. I think a project that rely solely on NFT and token staking is one big Ponzi scheme. Because there are no funds to support the market 1:1.
What is funny is that all the scams listed about were not even real cryptocurrencies but rather ponzi/pyramid schemes masquerading as the "next big coin" or the "next bitcoin"
Onecoin in particular had this kind of advertising, where they used Bitcoin's historic growth to convince their victims to join the Ponzi scheme. And then there was Bitcoinnect, if I recall well, it was even listed on coinmarketcap
Onecoin in particular had this kind of advertising, where they used Bitcoin's historic growth to convince their victims to join the Ponzi scheme. And then there was Bitcoinnect, if I recall well, it was even listed on coinmarketcap
And the even bigger funnier thing is a lot of people saw them as just that but still put money into it. Greed is a funny thing it will make people do crazy things. The old if it sounds too good to be true than it is just doesn't matter in crypto. And even crazier is we probably haven't even seen the biggest scam yet. Plenty more to come but people won't learn from history.
Not one of the biggest scams but EthereumDark was a fairly successful scam:
https://bitcointalksearch.org/topic/ann-ethereumdark-ethd-for-real-investors-only-pos-bounties-anonomity-2106405
I was one of the lucky ones that made $10K AUD from a $300 investment.
Most investors lost money though
https://bitcointalksearch.org/topic/ann-ethereumdark-ethd-for-real-investors-only-pos-bounties-anonomity-2106405
I was one of the lucky ones that made $10K AUD from a $300 investment.
Most investors lost money though
I consider all Ponzi schemes as a big ball of scam, every one of them so if you like me that wants complete security then you would avoid them totally turning deaf to all their BS preaching.
Also I am skeptical about most new projects not that they are all scams but many go to buy shillers, run death trap giveaways, over their budget promises, so always research on them before joining in.
Also I am skeptical about most new projects not that they are all scams but many go to buy shillers, run death trap giveaways, over their budget promises, so always research on them before joining in.
What is definitely missing is PlusToken, which had a big impact on the crypto industry in its time. The amount of damage was in the neighborhood of $3 billion, which by 2019 standards was a significant amount for the crypto industry. Fraudsters have 1% of all bitcoins at their disposal and are ways to crash the market in a very serious way.
At this moment the biggest scam in the Cryptocurrency by market cap is Ethereum. It's far ahead of its competitors.
Ethereum is really a good project so how come you are seeing it as a scam in history. The highest project in altcoins which are suitable with all the dapps are currently booming. I dont know why some called it as scam as this will not be justify as there are many people relying on the effectivity of eth. Yes it did transfer from PoW to PoS but its really an amazing L1 among its competitor.
At this moment the biggest scam in the Cryptocurrency by market cap is Ethereum. It's far ahead of its competitors. 
You can add pitcoin to this list. It is also one of dirtiest scam that was able to generate large amount of sales and gotten it's app installed on millions of devices. Later it found out that the app was secretly mining on the peoples smartphone. Thought it had very less power of mining from single device but collectively millions of devices were powering up their mining greed and gotten big amount of money in their wallets. With the time they also started selling the personal data of their users. This was nothing but surprisingly KYC docs of uses. I think I have seen a post on the forum itself with actual photograph of the KYC docs that were leaked from the Pitocin server. They were not hacks but intentional sell outs for money. That is one dirty business they played out there. Definitely it was wake up call for me to stay away from alts and try to be with bitcoin all the time.
What is funny is that all the scams listed about were not even real cryptocurrencies but rather ponzi/pyramid schemes masquerading as the "next big coin" or the "next bitcoin"
Onecoin in particular had this kind of advertising, where they used Bitcoin's historic growth to convince their victims to join the Ponzi scheme. And then there was Bitcoinnect, if I recall well, it was even listed on coinmarketcap
Onecoin in particular had this kind of advertising, where they used Bitcoin's historic growth to convince their victims to join the Ponzi scheme. And then there was Bitcoinnect, if I recall well, it was even listed on coinmarketcap
Bitconnect and Onecoin proved that a Ponzi scheme can be a part of Cryptocurrency and when there's money that's where investors go, they forgot the meaning of Ponzi scheme all they see the exponential growth of its investors, as they say, do what the Romans do and newbie in Cryptocurrency becomes attracted because of the shilling and the hype it created in the industry, they hire influencers, writers, marketers to make these Ponzi schemes legal to the eyes of investors.
I will never forget centra tech and onecoin, at that time those two coins were very noisy, especially onecoin, their fanatics were arguing with me who were acquaintances of acquaintances who also shared with me the beauty. of onecoin and telling me that if I don't invest they will leave me. But when I asked them what blockchain platform and exchange it can be traded on, they couldn't answer me well.
That's why I said to my acquaintance, they are only doing hype, sytle networking is where the approach of the members there comes from, and their style is also networker, they go through the power of words and mindset.
That's why I said to my acquaintance, they are only doing hype, sytle networking is where the approach of the members there comes from, and their style is also networker, they go through the power of words and mindset.
PLEXCOIN
CENTRA TECH
PINCOIN
BITCONNECT
ONECOIN
I would add some to the list:CENTRA TECH
PINCOIN
BITCONNECT
ONECOIN
PlusToken $2+ Billion. This was a chinese scam in 2018 where scammers pretended to be South Korean exchange and this actually affected markets a lot as scammers got to dump their stolen cryptos to the markets. No wonder that China banned icos. Most of these scammers got arrested 2 years later in 2020.
Envion $90 million. Mining farm in stored in containers. Product was ready to be manufactured, or so they said. At least they didn't get away from it. I am uncertain how much money investors got their money back trough trial.
The Swiss Alps Mining ICO, can't remember how much they scammed, but ivested and it has similar container idea to envion and surprisingly it was a slow rug scam as well. I suppose no one wanted to sue them and ceo runs free with his lambo.
And obviously there are countless of icos scamming just some "millions" and under.
I believe you forgot the real biggest scam history in cryptocurrency which is the Mt.Gox considering that the hacking event is an inside job since the CEO is jailed for falsifying there records. The estimated amount loss on this event was around 650K to 800K Bitcoins which is a trillion or billion dollar value using the current rate of Bitcoin.
Lots of undocumented exit scam too happened that greater value on the NFT industry during its hype.
Lots of undocumented exit scam too happened that greater value on the NFT industry during its hype.
What is funny is that all the scams listed about were not even real cryptocurrencies but rather ponzi/pyramid schemes masquerading as the "next big coin" or the "next bitcoin"
Onecoin in particular had this kind of advertising, where they used Bitcoin's historic growth to convince their victims to join the Ponzi scheme. And then there was Bitcoinnect, if I recall well, it was even listed on coinmarketcap
Onecoin in particular had this kind of advertising, where they used Bitcoin's historic growth to convince their victims to join the Ponzi scheme. And then there was Bitcoinnect, if I recall well, it was even listed on coinmarketcap
Since cryptocurrency users continue to increase, many people are exposed to it. At the same time, there is also an increase in scams in the market, which usually always fall victim to the newbies in the crypto space. And this is happening because nothing is happening in the regulation here in cryptocurrency. So crypto is one of the high-risk assets in the market. So the opportunity here is way higher than we expect. "If there is an opportunity there is always a risk"
Now let's talk about the crypto scam that rocked cryptocurrency. So the only one I covered was the biggest crypto scam, the one with the biggest stolen amount. Because we all know that there are many scams in the crypto world.
PLEXCOIN
It was launched in August 2017 and raised 8.5M$ through ICO. They say it will be used for maintaining the Plexcoin, Infrastructure, and for the future development of products and services. They also have promises to their investors of 1354% Return(ROI) within 29 days on investment, And it is stated in their whitepaper.
They also claimed that they have a global team of financial and managerial experts based in Singapore.
It is a Ponzi scheme, so its founders are all residents of Canada, Lacroix, Paradis-Royer, and Ouellet were charged in 2020 with Security Fraud, Wire Fraud, and Money laundering.
Source: https://cointelegraph.com/news/three-individuals-behind-alleged-plexcoin-ico-scam-charged-with-fraud
CENTRA TECH
It's a Miami-based company whose purpose is to offer crypto-based financial products such as debit cards, Visa and Mastercard. They claimed that they have a license for 38 estates in money transfer. And there are also celebrities involved in it like Floydmayweather and DjKhaled to promote centra tech ico the centra token, and it was able to raise 25M$ in July 2017. And its founders are Sohrab Sharma and partners Robert Farkas, and Raymond Trapani.
But in the same year of 2017, A project investor filed a Lawsuit, alleging the centra tech had violated security loss when it was able to raise 25m$ from the centra token ico. And in April 2018, the SEC charged them with multi-million dollar Unregistered Securities. It also includes the charged celebrities who were involved like DJ KHALED and MAYWEATHER but they also ended up in a settlement with the U.S security and exchange commission but they neither admitted nor denied their involvement here. And Sohrab Sharma has sentenced to 8 years an illegally conduct ICO and the others involved or partners only got a low sentence.
Source: https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/
PINCOIN
This, in turn, is one of the Vietnamese cryptocurrency projects that also took advantage of the times of ico mania. It only took away 660M$ from their investors.
How did they do it?
They created an attractive website, convincing whitepaper, social networks, mobile apps, and well-executed documentation. And a company promises a constant return for its investors with a profit rate of 48% per month. And besides that, investors will receive an 8% commission for every new member who enters the network.
The early investors made money from it at first, then the team started to pay rewards with other tokens, the Ifan token because the token they issued aside from Pin coin is the second one. But that token has no value because it was never traded in any exchange, after that the team disappeared and flew to another country. Almost 32k investors bit into this project, that's why they got 660M$ from ico earnings.
Source: https://cointelegraph.com/news/vietnam-pincoin-ifan-icos-exposed-as-scams-that-allegedly-stole-660-million
BITCONNECT
It is a classic Ponzi scheme, the company started in 2016 and promised a consistently high return. And they say this is possible with blockchain technology, many have invested in this project, and others are defending that it is legit because it started in 2016. And it became one of the best-performing currencies in the coinmarketcap in 2017. There was even an imitator here then, when it was at its peak its market cap even reached 2.6B$, its business model guaranteed return to investors up to 40% per month which is added to the based initial deposit or cash deposited faster.
The company also developed a trading bot and volatility software that would earn your bitcoin into an investment into a fortune. This is what is posted on their website.
If you invest 1000$ in bitconnect, it will net 50M$ within 3 years, assuming that their daily interest of 1% is true and will compound daily. This is where it gets suspicious because there is no guaranteed return in crypto. And experts say that even Buterin said on Twitter that "if 1%/day is what they offer then that's a Ponzi scheme.
Bitcoinnect's attack here is an aggressive marketing strategy. They have a large army of multi-level affiliate marketers to recruit new investors. Think from January 2017 the value of bitconnect was only 0.17$ and it reached 460$ at the end of December 2017. But it didn't take long because the scam was discovered, and they received a cease and decease order from Texas from North Carolina regulators. And the company shut down in January 2018. The reason for the fall in the value of their token is that in September 2021 the top North American promoter of bitconnect, Glen Arcaro, was sentenced to 38 months in prison for defrauding US investors a total of 2B$ who is now probably free,... The founder of bitconnect is Satish Kumbhani but he is nowhere to be found. And it is not in India it is in another country but it is not known where, so its location remains unknown.
[1.] Bitconnect shutdown
[2.] Bitconnect Fraud
ONECOIN
The largest cryptocurrency scam history, it took 4B$ of money from investors. But in other articles that I have read, it is playing with 4B$-15B$ of stolen money from their investors. And they had 3M members around 175 countries. It started in 2014 and its Founder is Dr. Ruja Ignatova or better known as the crypto queen. She claimed that onecoin is a bitcoin killer that can be used for payment. However, there was no onecoin blockchain model in the payment system. It is not even considered a blockchain.
In addition, the company sells educational materials such as courses, and cryptocurrency, this is their main business. There is also Trading and Investing here, and this is part of their multi-level marketing scheme. That the buyers will receive rewards for bringing in participants. course token buyers will also receive a rewards token that can be used to mine onecoin.
Its founder goes to different countries to conduct seminars to attract more investors, Dr. Ruja Ignatova who is a Bulgari national is now included in the most wanted top 10 in the FBI. Because in the year 2017 she left Onecoin, it disappeared like a bubble, and left the company without a word. And until now no one knows where it is. However, even though he left onecoin at that time, its operation continued with the help of his associates, later his brother Konstantin took over as a manager and face of the company.
But in 2016 many countries investigated this and called it a pyramid scheme. In 2018, the onecoin company was raided in Bulgaria, however, it was not until 2017 that Dr. Ruja and 2019 his brother Konstantin were arrested.
Onecoin had never been traded in the market or used to purchase anything. People are wondering how this woman was able to scam millions of people. Those who became members of this onecoin seem to have become a cult. They don't believe what the outside world says and this is what Dr. planted in their brains. Ruja Ignatova. But many people think that maybe it's just hiding or maybe it's getting plastic surgery. And also based on my research, Dr. has done many more scams. Ruja onecoin is still new. I didn't include the other scams. It's up to you to add.
Thanks for reading and taking the time.
[1.] What is Onecoin?
[2.] Founder most wanted list to FBI
[3.] Co-founder of onecoin was arrested
Now let's talk about the crypto scam that rocked cryptocurrency. So the only one I covered was the biggest crypto scam, the one with the biggest stolen amount. Because we all know that there are many scams in the crypto world.
PLEXCOIN
It was launched in August 2017 and raised 8.5M$ through ICO. They say it will be used for maintaining the Plexcoin, Infrastructure, and for the future development of products and services. They also have promises to their investors of 1354% Return(ROI) within 29 days on investment, And it is stated in their whitepaper.
They also claimed that they have a global team of financial and managerial experts based in Singapore.
It is a Ponzi scheme, so its founders are all residents of Canada, Lacroix, Paradis-Royer, and Ouellet were charged in 2020 with Security Fraud, Wire Fraud, and Money laundering.
Source: https://cointelegraph.com/news/three-individuals-behind-alleged-plexcoin-ico-scam-charged-with-fraud
CENTRA TECH
It's a Miami-based company whose purpose is to offer crypto-based financial products such as debit cards, Visa and Mastercard. They claimed that they have a license for 38 estates in money transfer. And there are also celebrities involved in it like Floydmayweather and DjKhaled to promote centra tech ico the centra token, and it was able to raise 25M$ in July 2017. And its founders are Sohrab Sharma and partners Robert Farkas, and Raymond Trapani.
But in the same year of 2017, A project investor filed a Lawsuit, alleging the centra tech had violated security loss when it was able to raise 25m$ from the centra token ico. And in April 2018, the SEC charged them with multi-million dollar Unregistered Securities. It also includes the charged celebrities who were involved like DJ KHALED and MAYWEATHER but they also ended up in a settlement with the U.S security and exchange commission but they neither admitted nor denied their involvement here. And Sohrab Sharma has sentenced to 8 years an illegally conduct ICO and the others involved or partners only got a low sentence.
Source: https://www.coindesk.com/markets/2021/03/05/centra-tech-co-founder-gets-8-years-for-crypto-fraud/
PINCOIN
This, in turn, is one of the Vietnamese cryptocurrency projects that also took advantage of the times of ico mania. It only took away 660M$ from their investors.
How did they do it?
They created an attractive website, convincing whitepaper, social networks, mobile apps, and well-executed documentation. And a company promises a constant return for its investors with a profit rate of 48% per month. And besides that, investors will receive an 8% commission for every new member who enters the network.
The early investors made money from it at first, then the team started to pay rewards with other tokens, the Ifan token because the token they issued aside from Pin coin is the second one. But that token has no value because it was never traded in any exchange, after that the team disappeared and flew to another country. Almost 32k investors bit into this project, that's why they got 660M$ from ico earnings.
Source: https://cointelegraph.com/news/vietnam-pincoin-ifan-icos-exposed-as-scams-that-allegedly-stole-660-million
BITCONNECT
It is a classic Ponzi scheme, the company started in 2016 and promised a consistently high return. And they say this is possible with blockchain technology, many have invested in this project, and others are defending that it is legit because it started in 2016. And it became one of the best-performing currencies in the coinmarketcap in 2017. There was even an imitator here then, when it was at its peak its market cap even reached 2.6B$, its business model guaranteed return to investors up to 40% per month which is added to the based initial deposit or cash deposited faster.
The company also developed a trading bot and volatility software that would earn your bitcoin into an investment into a fortune. This is what is posted on their website.
If you invest 1000$ in bitconnect, it will net 50M$ within 3 years, assuming that their daily interest of 1% is true and will compound daily. This is where it gets suspicious because there is no guaranteed return in crypto. And experts say that even Buterin said on Twitter that "if 1%/day is what they offer then that's a Ponzi scheme.
Bitcoinnect's attack here is an aggressive marketing strategy. They have a large army of multi-level affiliate marketers to recruit new investors. Think from January 2017 the value of bitconnect was only 0.17$ and it reached 460$ at the end of December 2017. But it didn't take long because the scam was discovered, and they received a cease and decease order from Texas from North Carolina regulators. And the company shut down in January 2018. The reason for the fall in the value of their token is that in September 2021 the top North American promoter of bitconnect, Glen Arcaro, was sentenced to 38 months in prison for defrauding US investors a total of 2B$ who is now probably free,... The founder of bitconnect is Satish Kumbhani but he is nowhere to be found. And it is not in India it is in another country but it is not known where, so its location remains unknown.
[1.] Bitconnect shutdown
[2.] Bitconnect Fraud
ONECOIN
The largest cryptocurrency scam history, it took 4B$ of money from investors. But in other articles that I have read, it is playing with 4B$-15B$ of stolen money from their investors. And they had 3M members around 175 countries. It started in 2014 and its Founder is Dr. Ruja Ignatova or better known as the crypto queen. She claimed that onecoin is a bitcoin killer that can be used for payment. However, there was no onecoin blockchain model in the payment system. It is not even considered a blockchain.
In addition, the company sells educational materials such as courses, and cryptocurrency, this is their main business. There is also Trading and Investing here, and this is part of their multi-level marketing scheme. That the buyers will receive rewards for bringing in participants. course token buyers will also receive a rewards token that can be used to mine onecoin.
Its founder goes to different countries to conduct seminars to attract more investors, Dr. Ruja Ignatova who is a Bulgari national is now included in the most wanted top 10 in the FBI. Because in the year 2017 she left Onecoin, it disappeared like a bubble, and left the company without a word. And until now no one knows where it is. However, even though he left onecoin at that time, its operation continued with the help of his associates, later his brother Konstantin took over as a manager and face of the company.
But in 2016 many countries investigated this and called it a pyramid scheme. In 2018, the onecoin company was raided in Bulgaria, however, it was not until 2017 that Dr. Ruja and 2019 his brother Konstantin were arrested.
Onecoin had never been traded in the market or used to purchase anything. People are wondering how this woman was able to scam millions of people. Those who became members of this onecoin seem to have become a cult. They don't believe what the outside world says and this is what Dr. planted in their brains. Ruja Ignatova. But many people think that maybe it's just hiding or maybe it's getting plastic surgery. And also based on my research, Dr. has done many more scams. Ruja onecoin is still new. I didn't include the other scams. It's up to you to add.
Thanks for reading and taking the time.
[1.] What is Onecoin?
[2.] Founder most wanted list to FBI
[3.] Co-founder of onecoin was arrested
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