Top 15 Most Popular Crypto Scams of All Time

Unfortunately, with the rise of crypto, there has also been an increase in the number of crypto scams. In this outline, we will take a closer look at the top 15 most popular crypto scams of all time. It is important to be aware of these scams to avoid falling victim to them.

Cryptocurrency has grown in popularity over the past decade, with many investors jumping on the bandwagon to invest in digital assets. These scams can take many forms, from Ponzi schemes to fake wallets and exchanges, ICO scams, pump and dump schemes, malware and phishing scams, and impersonation scams.

We will discuss how each scam operated, the damage caused, and the lessons learned. By understanding the methods used by scammers, you can better protect yourself and your investments in the world of cryptocurrency.

What Cryptocurrency Scams Are and Why They Are So Prevalent

Cryptocurrency scams refer to fraudulent activities that are carried out with the aim of deceiving individuals or groups to invest in a fake or illegitimate cryptocurrency project.

The scams can take many forms, including Ponzi schemes, fake wallets and exchanges, ICO scams, pump and dump schemes, malware and phishing scams, impersonation scams, and exit scams

Cryptocurrency scams are prevalent because the crypto market is relatively new and not yet regulated in many countries. This lack of regulation makes it easier for scammers to operate without consequences. Additionally, the anonymity and decentralization of cryptocurrency transactions make it difficult for victims to recover their stolen funds.

Furthermore, the potential for high returns on cryptocurrency investments can make investors more vulnerable to scams. Greed and the fear of missing out can cloud judgment, leading investors to overlook warning signs and invest in fraudulent projects.

As a result, it is crucial for investors to be aware of the different types of crypto scams and does proper research before investing in any cryptocurrency project.

Importance of Being Aware of Popular Crypto Scams

Being aware of popular crypto scams is crucial for anyone looking to invest in the cryptocurrency market. These scams can result in significant financial losses, and victims may have little recourse to recover their funds.

Moreover, many crypto scams are designed to target novice investors who may be less knowledgeable about cryptocurrency and more likely to fall for fraudulent schemes.

Scammers may use sophisticated techniques to convince investors to part with their money, making it even more important to be aware of the most popular scams.

By staying informed about the different types of crypto scams, investors can protect themselves and their investments. This includes doing proper research on any cryptocurrency project before investing, using reputable exchanges and wallets, and being cautious of any offers that sound too good to be true.

In addition to protecting individual investors, being aware of popular crypto scams can also help to reduce the prevalence of fraudulent activities in the crypto market. By exposing and avoiding these scams, investors can help to create a safer and more transparent crypto ecosystem for all participants.

Ponzi Schemes

Ponzi schemes are one of the most common types of cryptocurrency scams. These scams involve promising high returns on investment in a non-existent project or business. The initial investors are paid with the money invested by later investors, and the scheme continues until it collapses due to a lack of new investors.

The following are some examples of popular Ponzi schemes in the crypto market:

• Bitconnect
• OneCoin
• PlusToken

Bitconnect

Bitconnect was a lending and exchange platform that promised investors high daily returns of up to 1% on their investments. The project collapsed in 2018 after multiple warnings from regulators and the community.

OneCoin

OneCoin claimed to be a revolutionary cryptocurrency that would become the next Bitcoin. Investors were promised high returns on their investments, and the scheme was estimated to have raised billions of dollars before being exposed as a scam.

PlusToken

PlusToken was a mobile wallet that promised investors high returns on their investment in its native token. The project attracted millions of investors and is estimated to have raised over $2 billion before being exposed as a Ponzi scheme.

In general, investors should be wary of any cryptocurrency project that promises high returns with little or no risk. It is essential to conduct proper research and due diligence before investing in any project to avoid falling victim to a Ponzi scheme or other types of crypto scams.

Fake wallets and exchanges

Fake wallets and exchanges are another common type of a cryptocurrency scam. These scams involve creating fake wallets or exchanges that look legitimate but are designed to steal users’ funds.

The following are some examples of popular fake wallet and exchange scams in the crypto market:

• BitKRX
• Bitmarket

BitKRX

BitKRX was a fake South Korean exchange that claimed to be affiliated with the country’s government. The project was exposed as a scam after users reported difficulties withdrawing their funds.

Bitmarket

Bitmarket was a Polish cryptocurrency exchange that abruptly shut down in 2019, leaving users unable to withdraw their funds. It was later revealed that the exchange had been hacked, and the funds were stolen.

In general, investors should be cautious of any new or unproven wallet or exchange. It is essential to use reputable wallets and exchanges that have a track record of security and reliability. Additionally, investors should double-check the URLs of the wallets and exchanges they use, as scammers may create fake websites that mimic legitimate ones in an attempt to steal user information and funds.

ICO scams

ICO scams are another common type of cryptocurrency scam that emerged during the initial coin offering (ICO) boom in 2017-2018. ICOs are a fundraising method used by cryptocurrency projects to raise money by selling their own tokens in exchange for cryptocurrency or fiat currency.

ICO scams involve fraudulent projects that issue tokens and promise investors high returns but have no intention of developing a working product or delivering on their promises. In some cases, ICO scammers may use fake or plagiarized whitepapers, exaggerate the potential of their project, or use misleading marketing tactics to attract investors.

The following are some examples of popular ICO scams in the crypto market:

• Centra Tech
• Pincoin

Centra Tech

Centra Tech was an ICO project that promised to create a cryptocurrency debit card and exchange. The project raised over $32 million from investors but was later exposed as a fraudulent scheme, and the founders were arrested by the US Securities and Exchange Commission (SEC).

Pincoin

Pincoin was an ICO project from Vietnam that promised high returns to investors. The project raised $660 million from investors before it was revealed to be a Ponzi scheme.

Investors should be cautious when investing in ICOs and do thorough research on the project and the team behind it. Investors should also be wary of ICOs that promise high returns with little or no risk, as these may be indicative of a fraudulent scheme. Additionally, it is important to verify the legitimacy of the project and check for any regulatory warnings or red flags before investing.

Pump-and-Dump Schemes

Pump-and-dump schemes are a type of cryptocurrency scam that involves artificially inflating the price of a cryptocurrency and then selling it off for a profit.

These schemes typically involve a group of investors who work together to artificially drive up the price of a low-liquidity or low-market cap cryptocurrency, often through coordinated buying activity.

Once the price of the cryptocurrency has been artificially inflated, the scammers sell their holdings, causing the price to crash and leaving other investors with worthless or overvalued coins.

The following are some examples of popular pump-and-dump schemes in the crypto market:

• Big Pump Signal
• FOMO Coin

Big Pump Signal

Big Pump Signal was a group on the messaging app Telegram that organized pump-and-dump schemes for different cryptocurrencies. The group was shut down in 2018 after being exposed as a scam.

FOMO Coin

FOMO Coin was a cryptocurrency that was promoted through a series of misleading advertisements and social media posts. The project was revealed to be a pump-and-dump scheme after the price of the cryptocurrency crashed shortly after its initial listing.

Investors should be cautious of any cryptocurrency project that experiences sudden and unexplained price increases. It is essential to conduct proper research and due diligence before investing in any project to avoid falling victim to a pump-and-dump scheme or other types of crypto scams.

Additionally, investors should be wary of groups or individuals who promote “get rich quick” schemes or guarantee high returns with little or no risk.

Malware and phishing scams

Malware and phishing scams are another type of cryptocurrency scam that is used to steal users’ funds and personal information. Malware is malicious software that can infect a user’s computer or mobile device and steal sensitive data, including cryptocurrency wallet keys and passwords.

 Phishing is a fraudulent technique that involves creating fake websites or emails that look like legitimate ones to trick users into giving up their personal information or login credentials.

The following are some examples of popular malware and phishing scams in the crypto market:

• CryptoShuffler
• MyEtherWallet Phishing Scam

CryptoShuffler

CryptoShuffler is a type of malware that was designed to steal cryptocurrency wallet keys. The malware infects a user’s computer and waits for the user to copy a wallet address, at which point it replaces the address with a fraudulent one, causing the user to send their funds to the scammer’s address.

MyEtherWallet Phishing Scam

In 2018, a phishing scam targeted users of MyEtherWallet, a popular cryptocurrency wallet. The scam involved creating a fake website that looked identical to the legitimate MyEtherWallet website and tricking users into entering their login credentials and personal information.

Investors should be cautious of any unsolicited emails, messages, or websites that ask for personal information or login credentials. It is essential to use reputable and secure wallets and exchanges and to keep personal information and passwords secure. Additionally, it is important to keep antivirus software and firewalls up to date to protect against malware and other types of cyberattacks.

Impersonation scams

Impersonation scams are a type of cryptocurrency scam that involves an individual or group of individuals pretending to be a well-known figure or company in the cryptocurrency industry, such as a celebrity or a major exchange, in order to trick users into sending them money or personal information.

The scammers may use a variety of tactics to deceive users, including creating fake social media profiles or email addresses that resemble those of legitimate individuals or companies or sending messages or emails that appear to be from a legitimate source.

The following are some examples of popular impersonation scams in the crypto market:

• Elon Musk Impersonation Scams
• Bitconnect Impersonation Scams

Elon Musk Impersonation Scams

In 2018, scammers created fake social media profiles of Tesla CEO Elon Musk and used them to promote fake cryptocurrency giveaways. The scammers asked users to send cryptocurrency to a specific wallet address in order to participate in the giveaway, but the funds were instead sent to the scammer’s address.

Bitconnect Impersonation Scams

In 2018, scammers created fake social media profiles and email addresses that appeared to be from Bitconnect, a now-defunct cryptocurrency lending platform. The scammers used these fake accounts to solicit investments from users, but the funds were instead stolen.

In general, users should be cautious of any unsolicited messages, emails, or social media posts that ask for money or personal information. It is important to verify the identity of the person or company behind the message and to be wary of any offers that seem too good to be true.

Additionally, users should use secure communication channels and never give out personal information or login credentials to anyone they do not trust.

Exit Scams

Exit scams are a type of cryptocurrency scam in which a project or exchange shuts down suddenly and takes off with investors’ funds. These scams often involve promising high returns or offering a new and innovative service or product in the cryptocurrency market.

Once they have raised enough funds, the scammers then disappear without delivering on their promises, leaving investors with nothing.

The following are some examples of popular exit scams in the crypto market:

• Bitconnect
• QuadrigaCX

Bitconnect

Bitconnect was a high-yield investment program that was widely recognized as a Ponzi scheme. The project offered investors significant returns on their investments in its cryptocurrency, BCC, and also offered a lending platform that promised even higher returns. In January 2018, Bitconnect shut down its lending platform and BCC token, wiping out the value of investors’ holdings and causing significant losses.

QuadrigaCX

QuadrigaCX was a Canadian cryptocurrency exchange that suddenly shut down in 2019 after the death of its CEO, Gerald Cotten. The exchange claimed that it had lost access to $190 million in cryptocurrencies due to Cotten being the only person with access to the exchange’s cold wallets. However, it was later discovered that the exchange had been operating as a Ponzi scheme, with Cotten using investors’ funds to finance his lavish lifestyle.

Exit scams are particularly insidious because they can often involve well-known figures or companies in the cryptocurrency industry, who use their reputations to attract investors.

The rise of cryptocurrencies has created new opportunities for investment, but it has also led to the emergence of numerous scams and fraudulent activities. As cryptocurrencies are not regulated in the same way as traditional financial assets, it is easier for scammers to take advantage of unsuspecting investors.

Conclusion

It is essential for investors to be aware of these scams and to take necessary precautions to protect their investments and personal information.

This includes conducting proper research and due diligence, using reputable wallets and exchanges, keeping personal information and passwords secure, and being wary of unsolicited messages, emails, or social media posts that ask for money or personal information.

By staying informed and vigilant, investors can avoid falling victim to these scams and help to create a safer and more trustworthy cryptocurrency market.