Cryptocurrency has been hailed as the future of money, a way to bank the unbanked, and a means to liberate finances from big institutions. But like any high-reward frontier, it’s also a prime target for scammers. From Ponzi schemes to shocking exchange collapses, here are the top 10 biggest crypto scams that remind us that, in the wild world of crypto, not everything that glitters is Bitcoin.
1. OneCoin – The Queen of Crypto Scams
This one’s a real doozy. OneCoin, launched by the so-called “Crypto Queen” Ruja Ignatova, promised a revolutionary cryptocurrency but was actually a Ponzi scheme that swindled investors out of a whopping $4.5 billion. And, of course, it had none of the tech or blockchain to back it up. Ignatova vanished in 2017 and hasn’t been found since. This scam taught us a tough lesson about looking for proof of legitimacy.
2. BitConnect – The Viral Ponzi Scheme
Imagine someone promising you daily returns of 1%—in crypto, no less! That’s exactly what BitConnect did, sucking in investors until 2018, when it collapsed, wiping out $4 billion in a flash. BitConnect’s high-profile crash reminded us that, yes, something that sounds too good to be true probably is.
3. FTX – The “Too Big to Fail” Myth
FTX was a massive cryptocurrency exchange that went belly-up in 2022. Its founder, Sam Bankman-Fried, is facing the music for allegedly using customers’ funds for risky investments. FTX’s downfall, with an $8 billion shortfall, showed that even well-known companies aren’t immune to major mismanagement—and sometimes, just straight-up fraud.
4. Mt. Gox – The Hack Heard ‘Round the World
This one dates back to the early days of Bitcoin when Mt. Gox was the biggest Bitcoin exchange, handling over 70% of transactions. In 2014, the exchange lost 850,000 bitcoins (around $450 million at the time) due to a security breach. The event was a wake-up call for crypto enthusiasts, highlighting just how vulnerable early exchanges could be.
5. QuadrigaCX – The Mystery of the Missing Millions
Canada’s largest crypto exchange, QuadrigaCX, imploded in 2019 after founder Gerald Cotten passed away, supposedly taking the exchange’s wallet keys to the grave with him. The fallout revealed that Cotten had been running a Ponzi scheme. The missing $190 million? Likely gone forever. This one is almost like a crypto horror story: a lot of hype, mysterious circumstances, and lost fortunes.
6. PlusToken – The Asian Ponzi That Kept Growing
PlusToken targeted investors in Asia, promising insane returns that attracted millions. By 2019, it had amassed over $2 billion from its Ponzi scheme. And when it collapsed? People were left holding the bag. This one reminded everyone that crypto scams are a global problem and Ponzi schemes love promises of “guaranteed” returns.
7. BitClub Network – Mining for Trouble
This mining network promised to turn average people into millionaires, if only they’d invest in crypto mining. But from 2014 to 2019, BitClub Network was actually funneling $722 million into the founders’ pockets. It highlighted how “crypto mining” can be a perfect front for con artists since it’s so hard for people to verify if mining is actually happening.
8. MTFE – The AI Trading Bot That Wasn’t
In 2023, MTFE claimed to use AI bots to trade crypto and generate insane returns. Instead, it was just another Ponzi scheme that imploded, taking more than a billion dollars with it. MTFE’s collapse shows how scammers love to use buzzwords (like AI!) to lure in unsuspecting investors who might think they’re getting in on the next big thing.
9. Forsage – The Pyramid Scheme for the Blockchain Era
Forsage was billed as a decentralized platform, yet it was really just a blockchain-based pyramid scheme. The U.S. SEC charged 11 people involved in the scheme, which bilked investors of over $300 million. The allure of “decentralized finance” made it seem safe to some, but it was a reminder that even decentralized projects can have very centralized problems.
10. Celsius Network – Too Hot to Handle
Celsius Network, a crypto lending platform, promised high interest on deposits, but when crypto prices dropped, it couldn’t hold up. The company declared bankruptcy in 2022, and investors are still dealing with the aftermath of its “Ponzi-like” business model. Celsius reminded us that even legitimate-looking financial products in crypto can be as risky as any scam.
What Can We Learn from These Scams?
Every one of these cases serves as a reminder that crypto isn’t regulated like traditional finance. There’s more freedom, yes, but also more risk, and people often get swept up by promises of high returns. The common themes? Unbelievable returns, lack of transparency, and leaders with shady reputations. In crypto, it pays to be skeptical, ask questions, and do your own research. Because in this digital wild west, the stakes are high—and so are the risks.
