The crypto world is often seen as the new frontier of finance, but it's also teeming with scammers who prey on unsuspecting investors. Some of these schemes have reached infamous heights, leaving behind financial devastation. Here’s a breakdown of the 10 biggest crypto scams in history and how they rocked the industry. 👇
🔶 10 | Mt. Gox Hack (2014)
Summary: Mt. Gox was once the largest Bitcoin exchange, processing 70% of all Bitcoin transactions.
What Happened? Hackers stole around 850,000 BTC, valued at approximately $450 million then.
Aftermath: The hack led to tightened regulations and security protocols. Recovery efforts continue, with legal proceedings and compensation plans still unfolding.
🔶 9 | BitConnect (2018)
Summary: BitConnect promised massive returns through an investment platform, operating like a Ponzi scheme.
What Happened? Investors exchanged Bitcoin for BitConnect Coins (BCC), lured by daily profit promises. The platform’s value reached $2.5 billion by late 2017.
Aftermath: BitConnect collapsed after U.S. regulators intervened, causing BCC’s value to plummet and leaving investors with substantial losses.
🔶 8 | OneCoin (2017)
Summary: Marketed as a revolutionary digital currency by Ruja Ignatova, OneCoin lacked actual blockchain technology.
What Happened? Investors were sold “educational packages” and rewarded for recruitment. The scam generated billions globally.
Aftermath: As investigations began, Ignatova disappeared in 2017, becoming one of Europe’s most wanted. Authorities arrested several key figures.
🔶 7 | QuadrigaCX (2019)
Summary: QuadrigaCX was Canada’s largest exchange until its founder, Gerald Cotten, reportedly died in 2018.
What Happened? Cotten held the only keys to $190 million in cold wallets. But investigations later suggested the wallets were empty months before his death.
Aftermath: A massive liquidity crisis ensued, with users unable to withdraw funds, raising suspicions about Cotten’s alleged death.
🔶 6 | DAO Hack (2016)
Summary: The DAO raised $150 million in Ethereum ($ETH ) as a decentralized venture fund.
What Happened? A vulnerability in the smart contract was exploited, leading to a loss of 3.6 million ETH (~$50 million).
Aftermath: Ethereum executed a hard fork, creating two blockchains—Ethereum (ETH) and Ethereum Classic (ETC)—to restore lost funds.
🔶 5 | PlusToken (2019)
Summary: This Ponzi scheme targeted Asian investors, offering high returns in exchange for deposited cryptocurrencies.
What Happened? PlusToken amassed over $2 billion before it collapsed, with key operators later arrested.
Aftermath: The scheme affected millions of users, serving as a cautionary tale against schemes promising guaranteed profits.
🔶 4 | Ronin Network Hack (2022)
Summary: Ronin, an Ethereum sidechain for Axie Infinity, faced one of the largest hacks in crypto history.
What Happened? Hackers stole around $625 million in ETH and USDC.
Aftermath: Ronin Network increased security and started reimbursing affected users.
🔶 3 | Mirror Trading International (2020)
Summary: MTI claimed to use AI-driven crypto trading strategies to generate high returns.
What Happened? It turned out to be a Ponzi scheme, with CEO vanishing after the collapse.
Aftermath: Regulators intervened, revealing that 280,000 people were affected worldwide.
🔶 2 | Wormhole Hack (2022)
Summary: Wormhole, a blockchain bridge, suffered a major security breach.
What Happened? Hackers exploited a vulnerability to mint 120,000 fake Wormhole ETH tokens, worth $325 million.
Aftermath: Wormhole developers quickly addressed the vulnerability and partially recovered funds after negotiating with the hacker.
🔶 1 | Thodex (2021)
Summary: Thodex was a Turkish exchange whose founder disappeared with $2 billion in assets.
What Happened? Founder Faruk Fatih Özer fled, halting all platform operations and leaving 391,000 users unable to access funds.
Aftermath: Turkish authorities launched an investigation and issued an international arrest warrant, sparking outrage among investors.
Crypto Tips 🛡️
The crypto landscape is exciting but risky. Stick with reputable exchanges, avoid “too good to be true” returns, and remember: secure your assets wisely!
