The Five Most Notorious Cryptocurrency Scams of 2019

As cryptocurrencies climb in value following the last bear market, cybercriminals are once again trying to defraud cryptocurrency investors. Below, you will find the five most notorious cases of cryptocurrency theft of the first quarter of 2019 detected by CryptoHound.

South Korean Ponzi Scheme

Investors in South Korea, mostly senior citizens, were defrauded of $18.7 million after they were promised that the M-token they were purchasing would grow 600 percent in value. 56,000 people were scammed. The fraud was uncovered by South Korean authorities after they applied machine learning algorithms to detect keywords and phrases commonly used by those conducting ponzi schemes.

ICO Fraud in Canada

Kevin Hobbs and Lisa Chang are facing civil asset forfeiture in British Columbia based on the allegation that they defrauded their investors of $30 million. After launching the FUEL token, they told their investors that their cryptocurrency would grow substantially in value. They are accused of using investor funds for purchasing SUVs, a townhouse, and gambling.

$51 Million Stolen in Taiwan

Several Taiwanese men have been accused of defrauding 1,000 investors of $51 million. Investors were promised 335 percent returns, but they received nothing. Those responsible are facing several years in prison. In response to this ponzi scheme, the Taiwanese government has introduced amendments to the Money Laundering Control Act and the Terrorism Financing Prevention Act.

Amit Lakhanpal Arrested in Mumbai Scam Case

Amit Lakhanpal is one of four men who has been accused of stealing $71.6 million as part of an ICO scam. To attract investors, it is said that he and his partners inflated the price of his cryptocurrency and claimed that the royal family of Dubai supported his project.

$114 Million Stolen in Sofia-based Scam

As a result of a massive investigation and sting operation, police in Europe have uncovered a criminal organization spanning the Czech Republic and Bulgaria that was engaged in the illegal operation of binary options and crypto trading platforms. Users of these crypto platforms were promised high returns on their investments but were defrauded of $114 million.

Don’t Fall for Crypto Fraud

Ponzi schemes, ICO fraud, and similar criminal activities, typically offer investors unrealistically high yields on their investments, and the people running them will often ask investors to help them attract additional victims in exchange for high commissions. Use your best judgment when looking for a cryptocurrency in which to invest so that you do not get taken advantage of.