Regardless of the comparatively new reputation of cryptocurrency, the criminals seem like utilizing tried and true methods of scamming individuals out of their cash.
1. Bitconnect – $3.45 billion stolen
By far the largest instance of an Preliminary Coin Providing (ICO) rip-off is Bitconnect.
Bitconnect proclaimed to be an open-source cryptocurrency that assured traders 40 per cent returns.
Nonetheless, Bitconnect sadly turned out to be a Ponzi scheme that price its traders an unbelievable $3.45 billion.
2. Pincoin – $870 million stolen
One other main rip-off that rocked traders was Pincoin, a Vietnamese cryptocurrency that raised about $870 million from 32,000 individuals.
Quite than being paid again in money, traders have been rewarded with a brand new token known as iFan, earlier than the crew behind Pincoin disappeared alongside all of the invested cash.
3. ACChain – $80 million stolen
ACChain was a extremely promising ICO token created in Shenzhen, China, which managed to boost $80 million , but it surely rapidly turned clear that issues weren’t as they appeared.
An image of the ACChain headquarters was leaked and turned out to be nothing greater than an empty room. By that time, the corporate all of a sudden went very quiet, vanishing with out a hint.
4. Savedroid – $66 million considered stolen
At first look Savedroid appeared like one of the crucial audacious ICO scams of all time, with founder Yassin Hankir posting a picture of himself on a seashore on social media with the caption “over and out”, suggesting that he had fled together with his traders’ $66 million.
Nonetheless, it seems that this was in actual fact a publicity stunt, but it surely nonetheless massively shook investor confidence and led to a number of lawsuits.
5. PlexCoin – $20 million stolen
The PlexCoin ICO rip-off was notable for the truth that it was shut down by the US Securities & Alternate Fee (SEC) and ordered to pay again a lot of the $20 millionthat it defrauded individuals of.
The ICO initially promised individuals an unbelievable return of 1,354 per cent which in hindsight in all probability ought to have appeared too good to be true.