Top 10 Most Famous Scams in Crypto History

BitConnect

BitConnect is one of the most notorious scams in crypto history, raking in $2.5 billion in 2018.

This project promises high profits through trading bots and lending platforms, as well as issuing BCC tokens. However, they fail to pay the investor money and disappear with the entire amount of capital, leaving huge losses for investors.

AnubisDAO

In 2022, AnubisDAO raised $60 million ETH in a very short time, promising to issue ANKH tokens to investors.

In just 24 hours, this entire amount was transferred to another address and disappeared, turning the project into a classic rug pull. Some security organizations like Cyver have been able to track down some of the project's wallet addresses during the money laundering process but still haven't recovered the money lost.

The Squid Game (SQUID)

Taking advantage of the appeal of the cult Netflix movie, The Squid Game (SQUID) web3 on BNB Chain became a major scam in 2021. The project raised $3.3 million from investors.

A streamer on Twitch saw SQUID's market capitalization drop from $2,200 billion to nearly zero in just a few seconds, creating a major shock right on the livestream.

WoToken

WoToken, a Chinese crypto platform, promises high profits through trading bots and referral systems. However, this was a Ponzi scheme, defrauding 715,429 investors with a total value of up to $1.1 billion.

Although four key members were sentenced to prison, only $63.6 million was recovered, leaving huge losses for investors.

PlusToken

PlusToken is also another major Ponzi scheme from China, raising $2.25 million from investors in 2018-2019 similar to Wo Token.

The value of the stolen assets has risen to nearly $11 billion. The project owner and accomplices were arrested, but the incident still leaves a huge black mark on crypto history.

Moon Yield

Luna Yield, a DeFi platform, performed a rug pull just two days after launching in August 2021, raising $6.7 million.

Developers deleted entire websites, social media accounts and used Tornado Cash to launder money, leaving investors completely powerless.

StableMagnet

In June 2021, StableMagnet defrauded $27 million by exploiting smart contracts. They trick blockchain explorers like Etherscan into validating fake code, creating trust with investors before using a backdoor to clear funds.

After that, the entire amount of money went to various wallets before disappearing from the market.FTX - Alameda Research

FTX, one of the largest crypto exchanges in the world, deceived investors to the tune of $1.3 billion. The money was used by Sam Bankman-Fried for private political investments and the Alameda hedge fund. FTX CEO Sam Bankman-Fried has been sentenced to 25 years in prison, marking one of the biggest scandals in the crypto market in the last four years.

The collapse of FTX led to the collapse of crypto lenders and lenders such as Celsius and 3AC. The total amount of money lost by the collapse is estimated to be in the tens of billions of dollars.

OneCoin

The OneCoin project, founded by Ruja Ignatova, claims to be the “destroyer of Bitcoin” but is actually a giant Ponzi scheme. The project swindled $4 billion from investors. Ignatova disappeared in 2017 and is now on the FBI's strict wanted list, while her younger brother, Konstantin, has been arrested.

Currently Ruja Ignatova has not been arrested and remains on the run for years.

Mutant Ape Planet (MAP)

The Mutant Ape Planet (MAP) NFT collection developed by Aurelien Michel, a French citizen living in the UAE (United Arab Emirates), swindled $2.9 million from investors by promising rewards and exclusive privileges. Michel was later arrested at the New York airport.

These scams not only caused huge financial losses, but also shook investors' confidence in the crypto market. This is an important reminder that studying carefully and maintaining vigilance is always essential when entering this volatile market. Crypto can offer great opportunities, but risks are always present.