⚠️ CRYPTO SCAM ALERT ⚠️
The cryptocurrency market has been plagued by numerous scams, with fraudsters constantly evolving their tactics to deceive investors. Here are some of the most notorious scams you should be aware of:
1) FTX: Collapsed in November 2022 after mishandling billions in customer funds. Founder Sam Bankman-Fried was sentenced to 25 years for fraud.
2) Luna and TerraUSD: Experienced a $60 billion loss in May 2022, resulting in the arrest of founder Do Kwon in March 2023.
3) QuadrigaCX: Founder Gerald Cotten's death in 2018 left $215 million inaccessible, later revealed to be a Ponzi scheme.
4) Africrypt: Defrauded investors of 70,000 BTC in 2021. Founders Ameer and Raees Cajee are under investigation for money laundering.
5) SafeMoon: Executives withdrew over $200 million for personal use in 2021, leading to SEC fraud charges.
6) Pro-deum: Disappeared in 2018 with investors losing all their funds, marking it as an exit scam.
7) incoin and iFan: Modern Tech's ICOs raised $660 million in 2018 through a Ponzi scheme. The team vanished after collecting the funds.
8) Celsius Network: Paused withdrawals in 2022 and filed for bankruptcy owing $4.7 billion, now working to return assets to customers.
9) Centra Tech: Raised $25 million in 2017 with 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.
To protect yourself, conduct thorough research, verify the team's credentials, avoid unrealistic promises, diversify your investments, and never store all your funds in one place.
Stay vigilant, always DYOR and invest wisely to avoid falling victim to scams in the crypto market.
