The cryptocurrency world has seen incredible innovations—but it has also witnessed some of the biggest financial scams in modern history. From Ponzi schemes to multi-billion-dollar exchange collapses, bad actors have exploited hype, greed, and the lack of regulation to steal tens of billions of dollars from investors worldwide.
Below, we dive into the 10 biggest crypto scams of all time, exploring how they unfolded, what went wrong, and what you can learn to avoid becoming the next victim.
1. OneCoin – The $25 Billion Ponzi Disguised as the Next Bitcoin
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Estimated Losses: ~$25 billion
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Victims: Over 3 million
Launched in 2014 by Ruja Ignatova, OneCoin was marketed as the next revolutionary cryptocurrency. But in reality, OneCoin had no blockchain, no transparency, and no real market. It was a classic Ponzi scheme fueled by fake tokens and aggressive MLM (multi-level marketing) tactics.
Key Highlights:
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No real blockchain technology existed
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Token prices were artificially set
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Users could only "trade" tokens within a closed internal platform
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Disguised as an “educational” product
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Ruja vanished in 2017—along with investor money
2. FTX Collapse – The $10 Billion Shockwave
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Estimated Losses: ~$8–10 billion
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Victims: Over 1 million creditors
In 2022, FTX, led by Sam Bankman-Fried, collapsed almost overnight. The exchange secretly used customer funds to cover losses at Alameda Research, its sister trading firm. What began as a respected brand quickly became one of the largest failures in crypto history.
What Went Wrong:
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User funds were misappropriated
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Lack of internal controls and oversight
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Lavish spending on real estate and luxury
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Bankruptcy filed on November 11, 2022
While not a traditional scam, the magnitude of deception and breach of trust places FTX firmly on this list.
3. Terra-Luna Crash – $40 Billion in Vaporized Value
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Estimated Losses: ~$40 billion
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Victims: Millions globally
In early 2022, the Terra ecosystem—especially its algorithmic stablecoin UST—collapsed in a spectacular “death spiral.” The project’s flawed design led to the creation of trillions of Luna tokens, tanking both Luna and UST.
What Happened:
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Anchor Protocol withdrawals broke UST’s peg
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Luna was endlessly minted to stabilize UST
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Luna’s price crashed from $80 to near zero
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UST dropped from $1 to just a few cents
A harsh reminder that hype and innovation without stability can spell disaster.
4. BitConnect – The Meme Scam That Cost Billions
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Estimated Losses: ~$4 billion
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Victims: Between 100,000 to 500,000+
BitConnect went viral in 2017 for its “guaranteed returns” and charismatic promoters. Behind the scenes, it was an elaborate Ponzi scheme that collapsed in early 2018.
The Red Flags:
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Promised daily interest rates that defied logic
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Forced Bitcoin-to-BCC conversion and lock-in periods
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Multi-level marketing scheme to recruit new victims
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Fake volatility trading bot used as bait
Legal actions followed, with founders and top promoters facing serious fraud charges.
5. PlusToken – Asia’s $5 Billion Crypto Mirage
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Estimated Losses: ~$3–5 billion
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Victims: Over 1 million (mainly in Asia)
Launched in 2018, PlusToken promised sky-high monthly returns to investors across China and South Korea. It attracted over 4 million users before vanishing in mid-2019.
Why It Grew So Big:
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Promised 10–30% monthly returns
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Pitched through flashy conferences and a fake wallet app
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Relied heavily on a pyramid scheme structure
Chinese authorities eventually arrested 82 suspects, but most of the stolen crypto remains unaccounted for.
6. Mt. Gox – The Original Bitcoin Exchange Disaster
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Estimated Losses: ~$450 million in 2014 (worth ~$7–8 billion today)
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Victims: Over 24,000 account holders
In 2014, Mt. Gox, once handling over 70% of all Bitcoin trades, abruptly shut down after losing 850,000 BTC to hackers.
What Went Wrong:
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Years of unnoticed security breaches
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Poor software and internal controls
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Mismanagement by CEO Mark Karpelès
Only 200,000 BTC were ever recovered. Legal proceedings and asset recovery have continued for over a decade.
7. BitClub Network – Mining Profits Faked for 5 Years
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Estimated Losses: ~$722 million
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Victims: Tens of thousands
From 2014 to 2019, BitClub Network claimed to be a Bitcoin mining pool, offering passive income and high returns. In truth, there was no real mining—only faked earnings and aggressive recruitment.
How They Pulled It Off:
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Released fake mining earnings reports
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Used multi-level marketing to recruit
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Mocked investors in internal chats
The U.S. Department of Justice arrested the founders in 2019, exposing the fraud.
8. Thodex – Turkey’s $2.2 Billion Crypto Exchange Heist
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Estimated Losses: ~$2.2 billion
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Victims: Around 390,000
Thodex gained massive popularity in Turkey before freezing withdrawals in April 2021. Its founder, Faruk Fatih Özer, fled the country with billions, leaving users with nothing.
What Made It Notorious:
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Happened during Turkey’s economic downturn
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Revealed serious regulatory gaps
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Resulted in international arrest and extradition
This case prompted the Turkish government to tighten crypto regulations significantly.
9. Africrypt – 2 Brothers, 69,000 Missing Bitcoin
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Estimated Losses: ~$3.6 billion
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Victims: Over 70,000 investors
Africrypt was launched in South Africa in 2019 by two teenage brothers. In April 2021, they claimed the platform had been hacked, urged users to stay quiet—and then disappeared with 69,000 BTC.
Red Flags:
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Promised 10% monthly returns
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Very young and inexperienced founders
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Lack of transparency and legal registration
The funds were never recovered, and tracing the BTC proved nearly impossible.
10. QuadrigaCX – The Mysterious Death and Locked Funds
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Estimated Losses: ~$190 million
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Victims: Around 115,000 users
Canadian crypto exchange QuadrigaCX fell apart after its founder, Gerald Cotten, reportedly died suddenly in India, taking all wallet passwords with him.
The Strange Twist:
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Cotten was the only one with access to cold wallets
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Evidence of misuse of customer funds before his death
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Fake accounts used to manipulate funds
Rumors spread that Cotten faked his death, but no conclusive proof ever surfaced. Authorities later labeled the exchange a fraud disguised as a business.
Final Thoughts: The Dark Side of Crypto
The crypto industry holds immense potential—but it also presents enormous risks when trust is abused. From fake exchanges to Ponzi schemes and failed stablecoins, the above cases show that due diligence is essential before investing in any crypto project.
🔒 Stay Safe in Crypto:
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Verify the project’s team and technology
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Avoid “guaranteed returns” promises
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Use regulated exchanges
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Never invest more than you can afford to lose
Frequently Asked Questions
What are the top crypto scams of all time?
The biggest crypto scams include OneCoin, FTX, Terra-Luna, BitConnect, PlusToken, Mt. Gox, and more—causing losses in the billions.
Which are the most famous cryptocurrency frauds?
Famous crypto frauds include Ponzi schemes like OneCoin and BitConnect, as well as exchange collapses such as FTX and QuadrigaCX.
How can I avoid Ponzi schemes in crypto?
Avoid projects promising guaranteed returns, verify the team and tech, and be cautious of MLM or referral-heavy structures.
What lessons can we learn from failed crypto projects?
Always do your research, use trusted platforms, and never invest based on hype alone. Transparency and security are critical.
What caused the FTX and Terra Luna collapse?
FTX collapsed due to misuse of customer funds. Terra Luna crashed from a failed algorithmic stablecoin model and flawed tokenomics.
