The cryptocurrency world, known for its huge returns, is also home to many scams. Scammers are constantly coming up with new ways to defraud investors. Here are some of the most notorious cryptocurrency scams that have hit the market:
FTX: In November 2022, FTX collapsed due to mismanagement of billions of dollars in customer funds. Its founder, Sam Bankman-Fried, is currently serving a 27-year prison sentence for fraud.
Luna and TerraUSD: These cryptocurrencies faced a catastrophic crash in May 2022, wiping out $58 billion. Founder Do Kwon was arrested in March 2023 for his involvement in the crash.
QuadrigaCX: After the death of founder Gerald Cotten in 2018, about $200 million in customer funds became unrecoverable. It was later exposed as a Ponzi scheme.
Africrypt: Investors lost 65,000 BTC in 2021 when the platform collapsed. Its founders, Ameer and Raees Cajee, are now under investigation for money laundering.
Other infamous cases include SafeMoon, Prodeum—a 2018 exit scam that left investors with nothing after the team disappeared, and Pincoin & iFan—where Modern Tech raised $640 million through an ICO in 2018, only to disappear in another Ponzi scam.
Celsius Network: The platform stopped withdrawals in 2022 and filed for bankruptcy, leaving behind $4.5 billion in debt. The platform is currently trying to return some assets to customers.
Centra Tech: After raising $22 million in 2017, the founders were jailed for defrauding investors, while Mining Max defrauded 17,000 investors, raising $230 million but using only a small portion for actual mining operations.
To protect yourself from these scams, always thoroughly research the team behind any project. Be skeptical of offers that promise extraordinary returns. Due diligence and caution are necessary steps to avoid
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