It took less than 2 weeks for this scheme to unravel. On the 7th January 2018 a Bitconnect token traded for $431.79, then crashing down to $15.20 just over a week later and then flat lining around zero. Bitconnect began with an ICO in 2016 for a crypto lending platform that offered users absurdly high ROI promises.
Vitalik Buterin famously called out Bitconnect as a ‘ponzi’ when he discovered the advertised 1% a day reward.
Another trap that investors must have been living under a rock not to hear the dire warning about. This bogus cloud mining operation based in Dubai offered investors similar ROI promises as Bitconnect (around 1% a day to top level affiliates) and was also hit with the same emergency cease and desist from the Texas Securites Board stating on the order:
"Texas Securities Commissioner Travis J. Iles entered an Emergency Cease and Desist Order Dec. 20 against USI-Tech Limited, an overseas firm that is promising low-risk, triple-digit returns from investments tied to Bitcoin mining."
The Texas Securities Board claimed that the Dubai based firm was using two sales agents located domestically in the U.S were:
" Soliciting investors in dozens of Texas cities through targeted craigslist advertisements, YouTube videos, and standalone websites. "
The Ponzi King. Unlike other schemes which grow their network through affiliate and MLM practices, OneCoin has acquired members through the purchase of other failed (or failing) ponzi’s.
Conligus – 10,000 members
Univer – 120,000 members
OPN – 400,000 members
Bonofa – 60,000 members
BNG International – 10,000 members
The OneCoin scheme masquerades as an education company for traders. In order to join OneCoin you need to purchase a level training package (ranging from 100 to 118,000 euros). Packages come with ‘tokens’ which can then be assigned to mine OneCoin from dedicated pools.
You can only buy OneCoin through the OneCoin Exchange xcoinx or through private marketplaces open only to top tier investors.
Like almost all other MLM scams, the scheme offers direct sales and signup benefits to reward those who expand the OneCoin network.
OneCoin is not listed on CoinMarketCap and arrests have been made regarding the projects leadership in China. Additionally, the Hungarian Central Bank issued a statement warning its citizens about the scam, calling it an outright pyramid scheme.
Source : The Decentral
Rs 2000 crores Fraud: Amit Bhardwaj
Amit Bhardwaj touted as a bitcoin entrepreneur duped more than 8,000 people to the tune of Rs 2,000 crore from across the country.
Amit Bhardwaj owns a couple of bitcoin mining operations such as Gain Bitcoin and GB Miners.
Amit Bhardwaj had incorporated a multi-level marketing scam by luring investors to offer him bitcoins in lieu of higher returns. Amit Bhardwaj introduced a contract valid for 18 months which offering a return of 10%. Amit Bhardwaj also promised to facilitate the bitcoin mining hardware to the investors following which the investors can mine their own bitcoins, The Indian Express said in a report.
However, Amit Bhardwaj didn’t give returns and fled the country. The Pune police had located Amit Bhardwaj at Bangkok and also arrested seven persons associated with him.
I believe that Coincheck hack was the worst scam in the cryptocurrency history. While most established online exchanges have a multitude of security checks in place against hackers, in 2018 a group of anonymous individuals were able to hack into Coinchecks’ mainframe and make their way with a staggering 500 million NEM (equivalent to $530 million USD).
Benebit. The project was going to be a global decentralized ecosystem with a loyalty program for corporations. Unfortunately, the creator just pulled an exit scam, disappearing with $3 million in investor funds. After they collected the money Benebit team disappeared immediately, shutting down their website and stealing their ill-gotten gains.
Definitely its bitconnect, and one called TBC(The billion coin)
Bitconnect - nothing else was close.
10 Biggest Cryptocurrency Hacks Of 2018. In this article ... This scam was carried out through the use of a professional looking ICO campaign.
Bitconnect is on the throne for 2017/18
Mybtgwallet.com was a big scam. The project collected $3.3 million to miscreants who deceived and stole the private keys of customers making use of this wallet. Mybtgwallet was created by a person called John Dass who was a respected member of the Bitcoin Gold community. He promoted the project on various social platforms including Reddit, Steem and was able to lure in many susceptible individuals.