Crytpo and ICOS scams BUSTED. Ponzi, Pyramid and other Crypto related scams. Who would have thought it would be so easy to convince investors to part with their hard
earned cash and walk away with millions of dollars without so much of a product? Welcome to
the world of cryptocurrency! Simply set up a well-groomed website, create some fake LinkedIn
profiles and produce a white paper that is full of technological buzzwords that nobody
understands – you have yourself a record-breaking ICO! Here are five of the most brazen
cryptocurrency scams of all-time.
Number 5: First up is Indian backed Onecoin, which was the result of a multi-million dollar fund
raising campaign, have since caught the attention of law enforcement agencies in more than
one jurisdiction. Those behind the scam have locked-horns with Italian authorities, who fined
the entity 2.5 million euros, Chinese authorities, who sized more than $30 million and then
eventually the Indian authorities, who have since held the fraudsters in custody.
Number 4: Plexcoin: The next Ponzi scheme to enter our list is Plexcoin, whose late 2017 $15
million ICO promised investors unprecedented monthly returns of 1300%! The result? The
operation was shut down by the SEC, with the Plexcoin founder later incarcerated.
Number 3: Ifan and Pincoin: It was two for the price of one with particular scam as it was
subsequently revealed both projects were controlled by the same individuals. The crooks
managed to convince more than 30,000 investors to hand over more than $660 million to the
Vietnamese based Ponzi-scheme, with the Ho Chi Minh offices since being vacated.
Number 2: – In a close second is Centra, the cryptocurrency debit card backed by both Visa and
Mastercard. Who better to endorse this innovative product other than boxing legend Floyd
Mayweather? Raising more than $32 million along the way, it eventually turned out that the
project was nothing more than a scam. Thankfully the crooks behind the fraud have since been
arrested, with investors also filing a lawsuit for the return of their funds.
Number 1 Last but not least, the number one spot goes to Bitconnect: The now defunct
cryptocurrency exchange could no longer fend of the never-ending accusations that the project
was a Ponzi-scheme, with Bitconnect abruptly announcing it was shutting its doors in January
2018. In return for their native BCC coin, the scammers promised highly significant returns to
those who were happy to part-way with their Bitcoin - however no returns ever surfaced. An
FBI investigation is now ongoing, as well as U.S. courts subsequently freezing the Bitconnect
assets.
In summary, it is important to remember that these a just a select few of the many ICO scams
that have graced the cryptocurrency industry with their presence. Ultimately, this should be a
stark reminder that no matter how shinny the ICO looks at first glance, even when backed by an
A-list celebrity, there is always the chance that you could lose your investment in its entirety.
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Disclaimer:
I am not a licensed financial adviser. All the videos on this channel are intended for entertainment only. Please do your own research before you make any investments, as you could lose your entire investment. This is not trading advice and I am in no way liable for any losses incurred.
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