Cryptocurrencies are, doubtless, the most well liked monetary market on this planet proper now. Famend for its modern method, and spearheaded by the revolutionary blockchain-based, decentralized ledger expertise, and peer-to-peer, non-intermediary transactions.
Regardless of its prowess, the business can’t assist to shake off considerations associated to scams, and deservedly so. Scams have been synonymous with cryptocurrencies ever since we first started listening to about them, and their menace can’t be ignored due to the influence they’ve on undermining belief, even driving requires elevated regulation of the asset class.
On this article, we’ll look again at among the largest crypto-related frauds in historical past, touching upon their strategies and the long-term penalties for the broader business.
5 Greatest Crypto Scams in Historical past
| Rank | Rip-off Identify | Estimated Loss | 12 months Uncovered |
|---|---|---|---|
| 1 | Mt. Gox | $40B+ | 2014 |
| 2 | FTX Change | $8–10B | 2022 |
| 3 | OneCoin | $4.4B+ | 2017 |
| 4 | Thodex | $2.2B+ | 2021 |
| 5 | PlusToken | $2B+ | 2019 |
1. Mt. Gox: $40+ Billion (Estimated Loss)
Japanese cryptocurrency change Mt. Gox was among the many first digital asset buying and selling platforms to ever exist, and through its peak, the Bitcoin-only change dealt with 70% of all BTC trades. Nonetheless, considerations started to rise after it suspiciously suspended withdrawals citing technical points in 2014, which alerted authorities.
An investigation discovered that Mt. Gox had suffered an exploit that led to about 850,000 BTC, price over $450 million on the time, being stolen. The hack stemmed from poor inner safety measures and years of mismanagement. Mark Karpele, founder and CEO of the change, declared chapter quickly after and was sentenced to jail. Sadly, Mt. Gox’s prospects by no means bought their Bitcoins again. The loot led to Japan formalizing crypto change rules below its Monetary Providers Company (FCA), one of many earliest adopters of crypto-focused compliance requirements. The stolen cash are price upwards of $40 billion as we speak.
2. FTX Change: $8-10 Billion (Estimated Loss)
FTX was the third-largest cryptocurrency change by buying and selling quantity, driving customers from all around the world by its movie star endorsements and sports activities workforce partnerships. Its founder, Sam Bankman-Fried, was even featured on Forbes Journal because the youngest crypto billionaire. Nonetheless, issues got here crashing down in late 2022 after a bombshell article by CoinDesk revealed under-the-table dealings between FTX and its sister-company, Alameda Analysis.
FTX was apparently transferring buyer funds to the market maker and funding agency, which was presumed to be one in all its institutional purchasers, to make investments outdoors of its enterprise and repay liabilities. Round $10 billion in buyer funds went lacking, triggering one of many largest bear markets in crypto historical past. Bankman-Fried was arrested within the Bahamas in December 2023 and is presently serving time in a US jail. The FTX crash led to a major crackdown on crypto companies in the USA, with regulators imposing stricter governance on buying and selling platforms.
3. OneCoin: $4.4 Billion (Estimated Loss)
The OneCoin rip-off has been topped because the king of all crypto scams. The pyramid scheme run by a lady named Ruja Ignatova managed to draw billions of {dollars} in investments from traders in 175 nations on the promise of making a cryptocurrency known as OneCoin, claiming that it had the potential to topple the alpha cryptocurrency – Bitcoin (BTC)
She, alongside her husband, bought academic packages and different rewards whereas attractive customers right into a multi-level advertising and marketing rip-off, which by no means delivered on its “revolutionary” blockchain expertise. In 2017, their rip-off got here to mild after the mission collapsed and the founders embezzled an estimated $4.4 billion or extra. Ignatova’s husband and different core members of OneCoin have been arrested, with the Interpol placing out a wished discover for the self-proclaimed “Crypto Queen”. After being on the run for greater than 5 years, she was lastly arrested in 2023 and is dealing with 20 years in jail.
4. Thodex: $2+ Billion (Estimated Loss)
Thodex was a Turkish cryptocurrency change based by Faruk Fatih Ozer in 2017. He attracted traders to deposit their digital belongings on the platform by promising them free Dogecoin (DOGE), which resulted in a pool of $2.2 billion.
In early 2021, the platform shut down for a scheduled 6-hour upkeep, which was later prolonged to 5 days. Following buyer complaints, legislation enforcement officers led an investigation, which discovered that the founder had shut down the change and made away with billions in person funds. He has by no means been discovered. The occasion led Turkish authorities to introduce emergency measures to mitigate crypto scams by implementing strict rules.
5. PlusToken: $2+ Billion (Estimated Loss)
PlusToken is a crypto Ponzi scheme that operated from China as a high-yielding cryptocurrency pockets that promised as much as 30% returns on deposits. What was taking place behind the scenes was the corporate pooling funds from newer traders to pay earlier traders in a basic Ponzi construction.
The operation met its finish in 2019, when the founders swindled thousands and thousands of {dollars} earlier than disappearing with over 180,000 BTC and 6 million ETH, and different tokens, that are valued upwards of $2 billion as of 2025. China’s response to the PlusToken rip-off was swift, intensifying the crackdown on crypto-related actions and utterly banning their use. PlusToken grew to become a worldwide case examine in crypto anti-money laundering (AML) practices cited by the Monetary Motion Activity Power (FATF).
What’s a Crypto Rip-off?
Crypto scams are fraudulent operations run by dangerous actors who use varied malicious means to steal digital belongings from unsuspecting traders. They arrive in all sizes and styles, from phishing scams to rug pulls, Ponzi schemes, pretend wallets and exchanges, blackmail, pretend jobs, funding scams, and extra.
Most scams could be narrowed right down to one in all two kinds:
- Actions that encourage victims to willingly switch their crypto to malicious actors. Most important examples of this kind are romance scams, false or fraudulent enterprise or funding alternatives, and tackle poisoning scams.
- Deceitful or fraudulent schemes the place the scammers attempt to get entry to their victims’ wallets by phishing schemes, which contain pretend buying and selling or airdrop platforms.
Learn how to Determine a Crypto Rip-off?
Listed here are some methods to remain secure when coping with cryptocurrencies by recognizing potential scams:
- At all times learn a mission’s whitepaper earlier than investing. Allocate time to look by the whitepapers of blockchains, tokens, or buying and selling platforms to study their utility, and test whether or not they’re credible. If the whitepaper doesn’t present readability, then it’s secure to imagine that the mission could also be fraudulent.
- Be aware of emails or messages that you just obtain from crypto exchanges or wallets, as generally, dangerous actors can impersonate genuine platforms to ship you malicious hyperlinks that ask you to supply your seed phrase or personal keys. No credible mission will ask in your personal keys by electronic mail.
- If any crypto mission guarantees unreasonably excessive quantities of revenue on deposits or investments in a somewhat quick time, then chances are high that they’re fraudulent. Legit protocols perceive that crypto takes some time to generate appreciable yields, and it’s a unstable market, so no ROI could be assured.
- If a mission is indulged in extreme advertising and marketing, with no fundamentals to again it, then it’s most likely a rip-off. Legit crypto initiatives usually tend to market by strategic partnerships and elevated utility.
Last Ideas
The fraudulent platforms talked about on this article stole almost $30 billion in crypto from their prospects, who had entrusted them with their digital asset holdings. These occasions make clear why self-custodying your crypto and utilizing credible, usually audited platforms to purchase, promote, and commerce tokens is of utmost significance. These are the highest 5 crypto scams in historical past.
Observe the ideas talked about on this article to identify a possible rip-off and safeguard your cryptocurrencies. As a basic rule of thumb, at all times do your analysis and search skilled recommendation earlier than making any crypto-related funding determination.
