Exposing the 10 Biggest Crypto Scams: Tips to Protect Your Investments

Cryptocurrency has revolutionized the financial landscape, offering numerous benefits to investors. However, it has also attracted the attention of cryptocurrency fraud enthusiasts, making it crucial for investors to be aware of the risks and protect their funds. In this article, we expose the ten biggest crypto scams. 

Also, you will find out how to report crypto scammers. We will provide essential tips to save your investments and make the most of crypto.

What is a Crypto Scam?

Before delving into the scams, it’s essential to understand what constitutes a crypto scam. A crypto scam refers to fraudulent activities within the cryptocurrency ecosystem. An ecosystem where scammers deceive investors to unjustly gain access to their funds. 

Scammers employ various tactics. This includes fake investment schemes, Ponzi schemes, and NFT scams, among others, to exploit unsuspecting individuals.

How Much Was Lost on Crypto Scams?

Crypto scams have caused staggering financial losses in the crypto industry. Over the years, billions of dollars have been lost to these fraudulent activities. 

It is a stark reminder of the need for caution and due diligence when engaging in new crypto projects. Let’s take a look at some of the worst crypto scams that happened. 

Bored Bunnies ($20M)

One notable crypto scam involved media characters and the wave of interest in Non-Fungible Tokens (NFTs). 

Scammers capitalized on the hype surrounding digital art. Moreover, they created a fraudulent NFT project called Bored Bunnies. They attracted investors, promised high returns, and vanished with an estimated $20 million. This left victims in financial distress.

Baller Apes Scam ($100M)

Le Anh Tuan’s Baller Apes Scam is a warning tale about how greed and manipulation can cause devastating consequences. Tuan’s scheme involved creating an NFT collection of digital apes and convincing investors to buy them with the promise of massive returns. 

Yet, Tuan disappeared with approximately $100 million, leaving investors in despair. His manipulative tactics exploited enthusiasm for NFTs. What’s more, he was eventually charged with conspiring to steal $2.6 million from investors. 

The Baller Apes Scam is one of the largest NFT schemes ever charged. It highlights the need for caution and due diligence when investing in emerging technologies. The case also underscores the importance of regulation in protecting investors from fraudulent schemes.

QuadrigaCX ($200M)

QuadrigaCX was once a prominent Canadian crypto exchange. Yet, it turned out to be a massive scam. 

Gerald Cotten, the founder, and CEO, allegedly faked his death and absconded with approximately $200 million worth of investors’ funds. This case serves as a reminder to thoroughly research and scrutinize cryptocurrency exchanges before entrusting them with your assets.

JuicyFields Scam ($273M)

JuicyFields, presented as a legitimate cannabis investment platform, turned out to be a multi-million dollar scam. Operating as a crowdfunding project, it attracted investors seeking opportunities in the cannabis industry. 

However, the project collapsed, leaving investors empty-handed and facing substantial losses totaling $273 million.

GainBitcoin ($300M)

GainBitcoin promised investors high returns through cloud mining. Yet, it was revealed as an elaborate crypto Ponzi scheme orchestrated by Amit Bhardwaj. 

Bhardwaj lured individuals into investing in mining contracts. Still, the promised returns were never delivered. The scam accumulated an estimated $300 million before its exposure.

Pincoin Scam ($600M)

The Pincoin scam operated as part of a larger scheme called iFan, targeting Vietnamese investors. Both projects were presented as investment opportunities in the crypto and social media industries. 

Investors were promised high returns. Yet, scammers absconded with $600 million, leaving victims devastated.

Bitclub Network Crypto Scam ($722M)

Bitclub Network was a fraudulent mining operation that enticed investors with promises of significant returns. 

Matthew Brent Goettsche, Jobadiah Sinclair Weeks, and Silviu Catalin Balaci, the masterminds behind the scam, solicited funds from unsuspecting investors and misappropriated approximately $722 million. The case highlighted the dangers of blindly trusting investment opportunities in the crypto space.

Thodex Scam ($2B)

The Thodex scam, based in Turkey, involved a cryptocurrency exchange that abruptly ended operations. It left investors unable to access their funds. Faruk Fatih Özer, the founder of Thodex, vanished with an estimated $2 billion in customers’ assets. 

This incident exposed the vulnerabilities of centralized exchanges. It emphasized the need for increased security measures.

BitConnect Crypto Scam ($2.4B)

BitConnect promised investors massive returns through a lending and investment platform. 

This was one of the biggest and most popular projects in the initial coin offering (ICO) rage in mid-2017. It raised billions of dollars from global investors for a protocol that purportedly paid out 10% in interest earnings via its BCC token. Users who “referred” other investors got even more benefits.

However, it turned out to be one of the largest cryptocurrency Ponzi schemes in history. The project collapsed, resulting in losses estimated at $2.4 billion. This high-profile scam highlighted the importance of thorough research when considering investment opportunities.

Note: Never give away the seed phrase of your crypto wallet. Keep this in mind! 

OneCoin Crypto Scam ($4B)

Ruja Ignatova’s mesmerizing charm and grand promises captivated audiences, dressed in a stunning burgundy ball gown. The scene was set at London’s Wembley Arena in June 2016. 

There, she confidently proclaimed herself as the “Cryptoqueen” and presented OneCoin as the next big thing in cryptocurrency. Investors, caught up in the excitement of the emerging market, eagerly bought into her vision, applauding her every word. Little did they know that they were falling into a meticulously orchestrated pyramid scheme.

Just over a year later, Ignatova vanished, leaving behind a wake of devastated investors. Boarding a plane in Sofia, Bulgaria, she disappeared without a trace. The FBI labeled her one of their most-wanted fugitives, accusing her of defrauding people of a staggering $4 billion. Evidence presented in court revealed that Ignatova and her co-conspirators were fully aware of the fraudulent nature of their venture from the start.

Since her disappearance, Ignatova’s face has been prominently featured on wanted posters, news outlets, and the FBI website. Speculations about her whereabouts and potential changes to her appearance have kept the mystery alive. While her accomplices faced legal consequences, Ignatova remained elusive, evading capture and leaving behind a trail of financial ruin.

Today, the enigma of the “Crypto Queen” persists, as authorities worldwide continue their relentless pursuit. Ruja Ignatova, the mastermind behind the grand illusion, remains at large, her whereabouts and fate unknown. Her scheme and vanishing act serve as a chilling reminder of the devastating impact of financial fraud and the lingering quest for justice.

How to Avoid Crypto Scammers?

Protecting oneself from crypto scammers requires diligence and awareness. Some red flags to watch out for include promises of guaranteed high money returns, unsolicited calls or emails, unregulated exchanges, and more. 

It’s essential to conduct thorough research, verify the credibility of projects and individuals, and seek advice from trusted sources. Do that before investing your hard-earned money, to evade any crypto fraudster that lurks. 

How to Report Crypto Scammers?

If you encounter a crypto fraud or suspect fraudulent activity, it’s crucial to report it promptly. You can report scams to local law enforcement agencies and cybercrime divisions. You can also report it to us. We can help you get your money back. 

Besides, many cryptocurrency platforms have their reporting mechanisms in place to assist users in reporting suspicious activities.

Getting All the Thoughts Together

All in all, being aware of the biggest crypto scams and understanding how to protect yourself is crucial in the crypto world. By staying informed and exercising caution, you can reduce the risk of falling victim to fraudulent schemes. 

Remember, if something sounds too good to be true, it probably is. Stay vigilant and seek advice to navigate the crypto landscape safely.

Looking to invest in crypto? Ensure you have a reliable broker on your side. Contact us, and we’ll provide you with tailored recommendations to find the best brokers for your specific needs. Invest wisely and protect your assets in the shifting world of crypto.

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