History Of Crypto Scams

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History Of Scams In Crypto

Right now with the increase popularity of crypto and use. It is still consider the wild west of markets out there. There is still an amount of people out there who are using crypto to do dishonest things to other people. More less the amount is very low. However this still has not stopped from bad things from happening. From various scams and fraud that has happened.
I am going to tell you a bit of few of the projects that have happened that were of a bad scale.


One of the first ones to mention was under the name of PayCoin
PayCoin was selling a cloud mining deal. They were trying to sell and rent out virtual miners. At first they did gain a customer base. Eventually they saw that the project may go down so they decided to create their own coin. They sold it to people with the promise of big returned. fast transactions, also it being a great tech to use and being accepted by banks. However this project fell as well and was seen as a Ponzi scheme. The creator of PayCoin ended up going to prison and had to pay damages of over 10 million.


PinCoin was basically a company from Vietnam under the name of Modern Tech. They started an ICO and raised over 600 million from the sale. This was a scam project and many thought it was the largest scam in all of Vietnam.
They had set up a marketing plan that was very hard to turn away. They told people it was a popular social media to their audience. They told investors they be guaranteed a monthly return over 40 percent. They had a peer to peer platform based on blockchain and also an advertising network and told people it was a service like an auction. It all was of course a giant ponzi scheme. In which people would invest then would bring more people into the space who would earn from people below them as well. Eventually the dividends stopped and investors told to use their tokens. This was a total exit scam as the people behind the project left with over 600 million dollars after shutting down the program.


Another one to mention and this one is probably the biggest scam of all is under the name of BitConnect. Their platform started in 2016 and it was seen to become the elite of the crypto world. The idea was to tell people they would bring huge and guaranteed profits to anyone involved. They told people that all their investors earn over 300% a year and was guaranteed. The token that BitConnect created had a starting price of $463. Yet they sold it to people who truly believed they could get rich really fast. Many popular named people in crypto were going public to warn people to not get into BitConnect. However many people did not listen and continued to invest. After a bizarre public appearance by Carlos Mendes in January 2018. The entire platform shut down and it was estimated a total over 2.5 billion dollars is what people were deceived of. In the summer of 2018 the head of the organization was arrested.

Mt Gox

One of the biggest ones that i like to mention is Mt.Gox. This was one of the more popular platforms for BTC trading and had more then 70% of all transactions.

In 2013 there was a collection $5million from the US from the bank account of the company. As they were not registered in any financial group. Then came a lawsuit from the company’s former part of Coinlab. In which many millions of dollars were wanted.
Eventually the platform say more problems such as very long wait times for people to get to withdraw funds. Eventually they stopped the movement of all coins. Then they had hackers get into the account. By using a transaction system from the first day and were sneaky in taking all the bitcoin. They think over 600 000 bitcoin could be lost forever and no trace of it where it went is the big mystery.

In general there has been many cases of scams and hacks through the course that cryptocurrency has been around. Always be mindful if you see a deal that seems too good to be true. Then it probably is. Always use a wallet to store your funds. Don’t leave anything on an exchange.

Overall crypto is good place to get into. There will be a great future and many benefits to the world economy on this scale. No need to be scared of this space at all. Just be mindful and always do your research before making a financial move.

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