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1. BitConnect (2016–2018)
Arguably the most infamous crypto scam of all time, BitConnect promised huge daily returns through its lending platform. In reality, it was a Ponzi scheme that collapsed in 2018, wiping out billions in user funds.
Lesson: Beware of guaranteed high returns. In crypto, nothing is risk-free.
2. OneCoin (2014–2017)
Marketed as a revolutionary cryptocurrency, OneCoin was actually a fake coin that didn’t exist on a blockchain. It raised over $4 billion from investors worldwide before the founder disappeared.
Lesson: Always verify if a project runs on a real, public blockchain.
3. MT. Gox Hack (2014)
MT. Gox was once the largest Bitcoin exchange, handling 70% of all BTC transactions. In 2014, it filed for bankruptcy after 850,000 BTC was "lost" due to hacks and mismanagement.
Lesson: Don’t leave large amounts of crypto on centralized exchanges.
4. PlusToken (2018–2019)
This scam promised users high returns through a wallet app. It collected over $2 billion in crypto before vanishing. Later, it was discovered that the stolen crypto was being laundered through mixers and exchanges.
Lesson: Be cautious of wallet apps that push investment schemes.
5. Thodex Exchange Exit Scam (2021)
A Turkish crypto exchange suddenly suspended trading and its CEO disappeared, allegedly fleeing with over $2 billion in customer funds.
Lesson: Research the legitimacy and regulation of exchanges before using them.
6. Squid Game Token (SQUID) Rug Pull (2021)
Capitalizing on the popular Netflix show, the SQUID token shot up in value, until the developers pulled liquidity and vanished, leaving investors with nothing.
Lesson: If a project doesn’t allow selling, or has no clear vision, stay away.
7. WoToken (2018–2020)
Another Ponzi scheme similar to PlusToken, WoToken promised trading bot profits and tricked over 700,000 users out of more than $1 billion.
Lesson: Ponzi scams often disguise themselves as trading bots or investment platforms.
8. Africrypt (2021)
Two brothers in South Africa disappeared with $3.6 billion worth of Bitcoin from their investment firm Africrypt. The company claimed they were hacked, but many believe it was an inside job.
Lesson: Lack of transparency and centralized control is a red flag.
9. ICO Scam Wave (2017–2018)
During the ICO boom, thousands of crypto projects launched and raised money, many without any real products. It’s estimated that over 80% of them were scams or failed projects.
Lesson: Don’t invest based on hype, look for working products and real deals.
10. Crypto Twitter & YouTube Impersonators
Fake accounts mimicking real influencers like Elon Musk or Vitalik Buterin continue to trick people with “send 1 ETH to receive 2 ETH” schemes.
Lesson: No legit project or influencer will ask for crypto in exchange for more crypto.
Crypto is full of opportunity, but also risk. Scams come in many forms, from rug pulls and Ponzi schemes to fake exchanges and impersonators. The best way to protect yourself is to stay informed, ask questions, and never invest more than you can afford to lose.
In crypto, trust must be earned, not assumed.
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