Crypto might be all about innovation and potential, but 2024 reminded us that the space can get pretty wild. From billion-dollar scams to long-awaited justice, here are the top crypto scandals of the year—and the lessons they leave behind.
1. FTX’s Fallout: Sam Bankman-Fried Behind Bars
Remember the FTX collapse? It’s still sending shockwaves. Sam Bankman-Fried, the face of FTX, was sentenced to 25 years in prison in March. Billions of customer funds vanished under his watch.
Other key players got their share of justice, too. Ryan Salame (Co-CEO) was sentenced to 7.5 years, while Caroline Ellison, SBF’s ex and former Alameda CEO, got two years for her cooperation. Meanwhile, SBF is appealing his sentence—apparently writing a prison diary while at it.
2. Terraform Labs’ Big Fine
Terraform Labs, the company behind the 2022 $40 billion market crash, faced a $4.5 billion fine this year. Founder Do Kwon? He’s still stuck in Montenegro after being arrested with a fake passport. Both the U.S. and South Korea want him extradited, but the process is a mess.
3. Celsius Founder Admits Guilt
Alex Mashinsky, the founder of Celsius, confessed to fraud and token price manipulation. Facing up to 30 years in prison, Mashinsky admitted to misleading customers and creating a false sense of security. His sentencing is set for April 2025.
4. OneCoin’s “Cryptoqueen” Still Missing
The Onecoin Ponzi scheme, which scammed investors out of $4.5 billion, remains one of crypto’s darkest stories. While some accomplices got hefty sentences, Ruja Ignatova, the infamous “Cryptoqueen,” is still missing. Rumors even suggest she might have been murdered.
5. The Bitfinex Hack Wraps Up
The couple behind the 2016 Bitfinex hack, Ilya Lichtenstein and Heather Morgan, were finally sentenced. Morgan, aka “Razzlekhan” (a wannabe rapper), got 18 months, while Lichtenstein received five years. Fun fact: their story is now a Netflix doc.
6. Operation Destabilise
This UK-led operation uncovered massive Russian criminal networks using crypto for laundering money. From drug lords to arms dealers, this case exposed the underbelly of crypto’s darker uses.
7. SEC’s X Account Hacked
Even the SEC wasn’t safe in 2024. Hackers took over its X account (formerly Twitter) and posted fake $BTC ETF approval news. The chaos didn’t last long—Eric Council Jr., the mastermind, was arrested in Alabama.
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It’s a wild world out there—invest wisely.
Interesting Coin Today: $XRP $SUI (Bullish Potential)
Disclaimer:
This article is for informational purposes only and does not constitute financial, legal, or investment advice. Cryptocurrency investments are highly speculative and come with significant risks, including the loss of your entire investment. Always conduct thorough research and consult a financial advisor before making any investment decisions. The information provided is based on publicly available data and should not be considered as an endorsement or guarantee of any kind.