ALARMING NEWS ALERT
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Unfortunately, the cryptocurrency world has seen its share of scams, with scammers constantly finding new ways to deceive investors. Here is a summary of some of the biggest scams to watch out for:
1. FTX – Collapsed in November 2022 due to mishandling billions in customer funds. Founder Sam Bankman-Fried was sentenced to 25 years for fraud.
2. Luna and TerraUSD: Suffered a $60 billion loss in May 2022, leading to the arrest of founder Do Kwon in March 2023.
3. QuadrigaCX: The death of founder Gerald Cotten in 2018 left $215 million inaccessible, which was later revealed to be a Ponzi scheme.
4. Africrypt: Scammed investors out of 70,000 BTC in 2021. Founders Ameer and Raees Cajee are under investigation for money laundering.
5. SafeMoon: Executives withdrew more than $200 million for personal use in 2021, leading to SEC fraud charges.
6. Pro-deum: It disappeared in 2018 and investors lost all their funds, marking it as an exit scam.
7. Pincoin and iFan: Modern Tech ICOs raised $660 million in 2018 through a Ponzi scheme. The team disappeared after collecting the funds.
8. Celsius Network – Suspended withdrawals in 2022 and filed for bankruptcy owing $4.7 billion, and is now working to return assets to customers.
9. Centra Tech: Raised $25 million in 2017 on fraudulent promises, resulting in prison sentences for the founders.
10. Mining Max: Defrauded investors of $250 million in 2017, with only a fraction spent on mining, affecting 18,000 investors.
Be cautious and invest wisely to mitigate the risk of falling victim to scams in the cryptocurrency market.