The world of cryptocurrency, while revolutionary, remains a largely uncharted territory that demands cautious navigation. Many individuals have fallen victim to elaborate scams, resulting in the loss of life savings. According to the Chainalysis Crypto Crime Report, in 2021 alone, $14 billion in cryptocurrency was stolen—a figure that doubled from $7.8 billion the previous year.
This article explores the ten most significant cryptocurrency scams in history and offers actionable tips to help you stay safe.
Why Crypto Scams Are So Dangerous
A fundamental feature of most cryptocurrencies is their irreversibility. Once a transaction is confirmed, it cannot be undone—not by miners, developers, or even Satoshi Nakamoto. This means that if you fall for a scam, there is virtually no way to recover your funds.
Additionally, Bitcoin and other cryptocurrency addresses are pseudonymous. They typically consist of long strings of characters that aren’t directly tied to real-world identities, making it extremely difficult to identify and track down scammers.
With these risks in mind, let’s examine the ten largest crypto scams to date.
The 10 Biggest Crypto Scams in History
1. The OneCoin Scam
OneCoin was promoted as a legitimate cryptocurrency but was, in fact, a massive Ponzi scheme. Its founder, Ruja Ignatova, encouraged members to purchase educational packages and tokens with promises of immense returns. This resulted in losses totaling $4 billion from investors across 175 countries.
A major red flag was the absence of an actual blockchain behind the token. Instead of operating on established crypto exchanges, OneCoin used its own proprietary platform. Ignatova disappeared in 2017 and has not been seen since.
2. The Africrypt Scam
Africrypt was founded in 2019 by two South African brothers, Raees and Ameer Cajee. The platform invited users to deposit funds for Bitcoin investments. Attracting investors from Africa, the UK, and beyond, the operation seemed successful until April 2021.
Just seven days before a alleged “hack,” employees lost access to the company’s backend systems. Following the announced breach, the brothers vanished along with Bitcoin worth approximately $3.6 billion.
3. The Thodex Exit Scam
Thodex, a Turkish cryptocurrency exchange, orchestrated one of the most devastating exit scams. In April 2021, the platform halted operations, citing “partnership negotiations.” Investors were told that services would resume within days.
Instead, users found themselves unable to withdraw funds. Lawsuits followed, but the founder had already disappeared, taking an estimated $2.2 billion in crypto assets with him.
4. The Mt. Gox Collapse
Once the world’s largest Bitcoin exchange, Japan-based Mt. Gox handled over 70% of all Bitcoin transactions by 2013. The exchange suffered its first major hack in 2011, losing $8.75 million. But the final blow came in late 2013 when hackers stole 850,000 BTC—worth around $450 million at the time.
The exchange never recovered and filed for bankruptcy in 2014. Today, the lost Bitcoin would be worth billions of dollars.
5. The 2020 Twitter Hack
In July 2020, hackers gained control of high-profile Twitter accounts, including those of Elon Musk, Barack Obama, and Joe Biden. The attackers posted tweets promising to double any Bitcoin sent to a specific address.
Before the scam was widely recognized, the hackers had accumulated over $100,000 in Bitcoin. Twitter CEO Jack Dorsey addressed the incident, and the company launched an investigation, but the event highlighted the vulnerability of even major social platforms.
6. The CoinDash ICO Hack
On the day of its initial coin offering (ICO) in July 2017, CoinDash’s website was compromised. Hackers replaced the legitimate Ethereum deposit address with their own, stealing 43,000 ETH.
CoinDash’s CEO promised to reimburse affected investors with CDT tokens. Surprisingly, the hackers returned 20,000 ETH months later, leading to speculation that the attack may have been an inside job.
7. The PinCoin Scam
PinCoin initially presented itself as a legitimate investment opportunity in Vietnam, offering returns of up to 48% per month. Investors were paid in iFan tokens, which were marketed as tools for connecting fans and celebrities.
By March 2018, investors lost access to their accounts. The team behind PinCoin disappeared with over $600 million collected from more than 32,000 people.
8. The MILF Token Scam
Popular Twitch streamer Adin Ross promoted MILF token to his followers in May 2021. The token’s value surged by nearly 2,000% within 24 hours of his endorsement.
Reports suggest Ross was paid $200,000 for the promotion. He later condemned the token in a viral video, claiming he hadn’t intended for followers to invest. By then, the token had collapsed, and many had already lost money.
9. The Bored Ape Yacht Club NFT Scam
In October 2021, entrepreneur Calvin Becerra lost three Bored Ape Yacht Club NFTs—valued at nearly $1 million—to a phishing scam. Posing as Discord support, scammers tricked him into sharing his credentials.
The incident underscored the risks even experienced participants face in the NFT space.
10. The Squid Game Token Scam
Inspired by the hit Netflix series, Squid Game token launched in September 2021. The token gained rapid attention, but warning signs were present: investors could buy but not sell the token, and social media channels associated with the project blocked comments.
After two weeks, the developers sold all their tokens, causing the price to crash to zero. Investors lost an estimated $3.3 million.
How to Avoid Crypto Scams
After seeing how easily people can lose millions, it's clear that vigilance is essential. Here are three key strategies to help you avoid crypto fraud:
- Conduct Thorough Research: Before investing, verify that the project is blockchain-based and transparent about its transactions. Review its ICO rules, liquidity provisions, and team background.
- Avoid Copy-Pasting URLs: Scammers often create fake websites that look identical to legitimate ones. Check URLs carefully—sometimes characters like ‘l’ are replaced with ‘1’—and always navigate directly to official sites.
- Be Wary of Suspicious Emails: Phishing emails often impersonate real companies. Check sender addresses carefully and avoid clicking links in unsolicited messages.
👉 Explore secure investment strategies to further protect your digital assets.
Frequently Asked Questions
What makes cryptocurrency transactions irreversible?
Cryptocurrency transactions are confirmed through decentralized networks and added to the blockchain. Once confirmed, they cannot be reversed or altered by any central authority, which is why sending funds to the wrong address—or a scammer—is so risky.
How can I tell if a crypto project is legitimate?
Legitimate projects usually have transparent whitepapers, active development communities, and clear use cases. Avoid projects that promise guaranteed returns or use high-pressure tactics. Always verify information through multiple independent sources.
What should I do if I’ve been scammed?
Report the incident to relevant authorities immediately. While recovering lost funds is difficult, reporting helps warn others and may assist in investigations. Document all transactions and communications with the scammers.
Are all new cryptocurrencies risky?
Not all new projects are scams, but beginners should stick to well-established cryptocurrencies like Bitcoin and Ethereum until they gain more experience. Always invest only what you can afford to lose.
Can social media promotions be trusted?
Be extremely cautious. Many scams use paid influencers to create hype. Always do your own research rather than relying solely on social media endorsements.
What are some common red flags in crypto projects?
Guaranteed high returns, lack of transparency, anonymous teams, and limited ability to sell tokens are all major warning signs. If something seems too good to be true, it probably is.
Final Thoughts
The central lesson from these historic scams is clear: if an opportunity seems too good to be true, it likely is. Always prioritize security, conduct due diligence, and remain skeptical of promises that sound unrealistic. Educating yourself is the best defense against cryptocurrency fraud.
Stay informed, stay cautious, and happy investing