Top 10 Most Infamous Cryptocurrency Scams of All Time (And How to Avoid Them)

Cryptocurrency has transformed finance, offering new opportunities for investors worldwide. However, its rapid rise has drawn scammers eager to exploit unsuspecting enthusiasts. Through fake coins, exchange hacks, and deceptive schemes, billions have been stolen, damaging public trust. These scams highlight the importance of vigilance in the crypto space. By exploring the top 10 most shocking crypto scams in history, we can uncover valuable lessons. Understanding these pitfalls empowers you to protect your investments and navigate the digital currency world more securely. Stay informed to stay safe.

1. Mt. Gox Collapse (2014)

Once the world’s largest Bitcoin exchange, Japan-based Mt. Gox collapsed after hackers stole 850,000 BTC (worth $450 million at the time). Customers lost everything overnight, and CEO Mark Karpelès faced criminal charges. The incident exposed poor security practices, and victims are still waiting for compensation.

2. OneCoin Ponzi Scheme (2014–2019)

Dubbed the “Queen of Crypto Scams,” Ruja Ignatova sold OneCoin as a revolutionary cryptocurrency. In reality, it was a pyramid scheme with no blockchain. Investors lost $4 billion, and Ignatova vanished in 2017. Her brother was jailed, but she remains on the FBI’s Most Wanted list.

3. BitConnect (2016–2018)

BitConnect promised insane returns through a “lending program,” luring investors with claims of 40% monthly profits. It crashed in 2018 when regulators labeled it a Ponzi scheme. Investors lost $4 billion, and its founder fled, leaving behind viral memes like “BITCONNEEEEECT!”

4. PlusToken Scam (2019)

This Chinese app claimed to offer crypto wallet services but siphoned $2–3 billion from users. Founders promised high returns, then disappeared. Six suspects were arrested, but most funds were laundered through mixers, making recovery nearly impossible.

5. Squid Game Token (2021)

Riding the Netflix show’s hype, Squid Token (SQUID) skyrocketed before developers pulled the plug, stealing $3.8 million. Investors couldn’t sell due to anti-dumping code—a classic “rug pull.” The creators vanished, highlighting the risks of meme coins.

6. Africrypt Heist (2021)

South African brothers Ameer and Raees Cajee vanished with $3.6 billion in Bitcoin from their investment platform. They blamed a hack, but investigators found evidence of insider fraud. The case remains unresolved, leaving thousands bankrupt.

7. My Big Coin (2017)

Randall Crater’s “My Big Coin” claimed to be backed by gold but was pure fiction. He scammed $6 million from investors by faking partnerships and prices. Crater was convicted of fraud in 2022, proving even small scams have big consequences.

8. Bitfinex Hack (2016)

Hackers stole 120,000 BTC (worth $5 billion) from this major exchange. Bitfinex survived by forcing users to absorb losses. The U.S. later recovered some funds, but the breach remains a stark reminder of exchange vulnerabilities.

9. Twitter Bitcoin Scam (2020)

Hackers took over Elon Musk, Bill Gates, and Barack Obama’s verified Twitter accounts, posting “Send Bitcoin to double your money!” They stole $118,000 in hours. Though small, the breach shook trust in social media security.

10. Thodex Exit Scam (2021)

Turkish exchange Thodex shut down overnight, CEO Faruk Fatih Özer fleeing with $2 billion. Users couldn’t access funds, and 62 employees were arrested. Özer was caught in Albania, showing global scams don’t pay.

Crypto scams thrive on hype, greed, and confusion. To protect yourself:

- Avoid “guaranteed” high returns—they’re usually traps.

- Research platforms before investing.

- Use secure wallets, not exchanges, for long-term storage.

By learning from these scams, you can navigate the crypto world wisely. Stay skeptical, stay informed, and never let FOMO override caution.

This list isn’t just about shock value—it’s a roadmap to smarter investing. Share it to help others dodge crypto’s darkest pitfalls.