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The biggest cryptocurrency scams of all time (… so far)

Cryptocurrencies have been around long enough that we generally know what they are, but not long enough that most of us know exactly what they are or how they work. Bitcoin has been in the news in the recent past because it made people rich or bankrupt overnight, although it is not clear to the layman how to do it.

Put simply, cryptocurrencies are a new form of digital currency that is administered and administered by multiple people instead of one person, with each person adding public details of their transaction to a long list called a blockchain. At least that̵

7;s Bitcoin, as it has spawned several other coins with different characteristics since its introduction around 2011.

Since cryptocurrencies are still in the early stages, their recent appreciation has piqued the imagination of the population, causing many people to rush to invest all of their savings in them. Of course, like everything else, it is not all fun and games as many people have lost a lot of money during the many market crashes in Bitcoin’s history.

This is not the only risk as this is also an industry full of scams and scams of various kinds as the technology is not controlled by any central authority. These cryptocurrency scams expose the obvious flaws in cryptocurrency technology and prove once and for all that we are not ready to use them as everyday currency just yet.

8. The Big Twitter Hack

At the time of this writing, Twitterverse is still teetering on one of the greatest cryptocurrency hacks of all time. The reports of many eminent people – Barack Obama, Bill Gates, Joe Biden, Jeff Bezos, and many others – have recently been hacked by an unknown group and their feeds have been replaced with tweets asking for Bitcoin donations. Unfortunately, some people fell for it too.

While we’re still unsure of the exact numbers, that is Scammers are said to have gotten hundreds of thousands of dollars from this scam alone, as apparently some people trust these personalities enough to send them money whenever they ask. Although the accounts have been restored to their rightful owners, it is not yet clear how the hack happened.

7. The YouTube scammers

Even if cryptocurrency fraud has existed as long as the currencies themselves, they must keep updating their MO to stay ahead of the fraud market. What would have worked in 2013 is well known at this point, as the recent crypto boom has brought cryptocurrencies into mainstream discourse.

This doesn’t mean that scammers are running out of opportunities to scam people – they are just finding new ways to do it. Take one of those very specific types of scams that you mostly find on YouTube, where a large channel is hacked and its regular stream is replaced with a live stream from someone famous in the crypto field (they even used Elon Musk) and asks for a generous donation through Bitcoin. Quite a few major channels – including TopTenz – Have fallen victim to this tactic as it targets a large group of unsuspecting subscribers directly.

6. OneCoin

As you know by now, Bitcoin isn’t the only cryptocurrency. Many other coins have tried to replicate their success story and some have done quite well as they use their own technology to solve various problems. Still, most of the coins in the market have little to no use and only exist as for-profit business models. That would be fine, too, except that many of them are huge scams with little or no intention of doing what they say with your money.

Just take OneCoin, which started as a cryptocurrency and was promoted by hundreds – if not thousands – of people on YouTube and other social media channels before it was launched. They asked people to invest in their teaching materials, goods, and other things in exchange for coins, and even had an incentive model for referrals.

As you’ve guessed by now, it was a multi-tier international Ponzi program. Quite a few people ended up buying it because it looked pretty legitimate. As it turned out, it wasn’t. In the end, the scammers got away with over $ 4 billion, which is easily comparable to a major stock market scam.

5. Bitconnect

You’d think that cryptocurrency scammers would have to get creative every now and then to make a profit, and they do because the layman now knows more about these coins than they did about a decade ago. But that doesn’t mean that the old methods don’t work at all. It’s still ridiculously easy to use and at least get the same script something People who give you their precious coins. Some new coins claim to solve an arbitrary problem, thousands of people put their money in and buy it thinking someone else would buy it at a higher price later, and the company goes missing with all the money.

This was the case with Bitconnect, although it became more successful than most other scams of its kind. While their offer was simple – deposit a sum of money in exchange for a fixed amount of periodic returns – it counted more buyers than usual, which no one is sufficiently can explain. Many claim that this was due to their quirky marketing, although it may just have been the fear of losing a large investment at the height of the crypto bubble. In its heyday, Bitconnect was one of the top 20 cryptocurrencies with a market capitalization of around $ 2.6 billion.

What absolutely won’t surprise anyone is this Bitconnect Turns out it was a Ponzi program too, and almost all of the top brass is still MIA after they abruptly ceased operations and left the market in 2018.

4. Pincoin and iFan

Pincoin was founded by a Vietnamese company called Modern Tech with one of the largest launches in crypto history. Around 32,000 people have invested over $ 660 million in the project, which may sound groundbreaking. It wasn’t, and it was actually yet another Ponzi scheme that was all about getting guaranteed returns over time.

A key difference between Pincoin and other scams are that in the beginning, Pincoin actually started paying people’s returns, which sounds legitimate and gets even more people on board. As expected, they soon stopped cash returns and replaced it with a different one of their coins, iFan, before ceasing payments entirely, followed shortly by vacating their offices overnight. We’re not sure how much they made, although it is believed the numbers were in the hundreds of millions!

3. Bitcoin Savings & Trust

Bitcoin Savings & Trust was a bitcoin company that appeared on online forums in 2013 when it was still in its infancy. The trust founded by Trendon Shavers – also known as Pirate – was originally just a Bitcoin bank from which Shavers could sell to other buyers. As the business picked up and he needed more volume to keep up – or at least he claims to be – he established the trust and promised a constant return on whoever invested in it 7%.

While that worked quite well on sunny days, the price of Bitcoin is not only increasing. During one of the many major accidents, Shavers found it hard to repay the people, and at one point he took money from new customers to repay the older ones. Needless to say, the model collapsed pretty soon when he filed for bankruptcy and was on trial. It may sound like an honest mistake and not a scam, but it was later found out that he spent a lot of money on casinos, fancy cars, and other indulgences. All in all, the New York prosecutors reckoned he’d made it 146,000 Bitcoin from the scam, which stands at around $ 1.3 billion at the time of writing.

2. The scam on the Silk Road auction

The Silk Road was one of the largest digital black markets ever and was powered by the anonymity of Bitcoin. At its peak, some of the world’s largest countries and security forces were looking for the team it was running as it ran on an anonymous, incomprehensible network called Tor. In the end, it wasn’t the technology that betrayed it, but the stupidity of its founder.

Understandably, the authorities confiscated his property found and confiscated a lot of Bitcoin. They decided to put them up for auction and emailed anyone who had previously shown interest in buying it unless they were using CC instead of BCC. The now public list was shared on the internet before they even realized their mistake. Quite a few of these customers have also been betrayed. While we don’t know the full extent of this crime, at least one customer lost 100 Bitcoin in the phishing attack, which is currently worth around $ 900,000.

1. Mt. Gox

If you haven’t heard of Mt. Gox, you may be new to cryptocurrency. It was a cryptocurrency exchange based in Japan that, at its peak around 2013, was responsible for around 70% of all Bitcoin transactions worldwide. Without its infamous 2014 hack, it would still be the biggest player out there today.

In total, around 800,000 Bitcoin were stolen from the mountain. Gox Bitcoin walletalthough the details of exactly what happened are still blurry. It was the biggest setback for Bitcoin since its inception, as 600,000 of those Bitcoin – worth around $ 5.5 billion today and a large portion of the total supply – are still being lost. While Mt. Gox declared bankruptcy shortly after the fiasco, the hunt for the missing Bitcoin is still ongoing.

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