10 Cryptocurrency Scandals You Need To Know About

 love ether?  Love bitcoin?  These cryptocurrency scams will make you think twice about it.

10 Cryptocurrency Scandals You Need to Know About

Cryptocurrency is often framed as one of the most lucrative sectors in the tech world, and it is. This is a world where blockchain technology can do anything—including ending the world's poverty, creating a new financial ecosystem, and making money transfers easier than ever.

The world of cryptocurrency is one that has also become somewhat dramatic in recent years. Top bitcoin influencers are brawling on Twitter, there are reports of bitcoin wallet scams, and, at times, it all sounds crazy.

With all the drama involved in the crypto world, it should come as no surprise that some cryptocurrency scams made international news. Although many scams have come to the fore, these are some of the worst criminals in recent crypto history.

The MT. Gox Disaster


Back in the day, Mt. Gox was one of the largest cryptocurrency exchanges in the world. It was an exchange that was as reliable as Coinbase, if not more so. About 70 percent of all bitcoin transactions move through Mt. Gox at his highest performance.

Then, in 2011 the infamous bitcoin wallet was hacked. An unknown hacker used staff credentials to modify the price of bitcoin and illegally transfer the coins to himself. Mount Gox moved everyone else's coins to cold storage.

Sadly, this was not the end of Mt. Gox's agony. Bitcoin Wallet kept losing customers' bitcoins through impossible transactions, thefts and hacks. The Department of Homeland Security became involved, and as Mt. Gox kept trying to make things better, things got worse.

Eventually, it emerged that people were waiting weeks and months for funds to be cleared. That last scandal killed Mt. Gox. By 2014, the company filed for bankruptcy.

This alone was not enough to perpetuate one of the worst cryptocurrency scams to ever hit a bitcoin wallet. The company still has regular lawsuits, thefts and financial issues to be resolved. what a nightmare!

Mark Karpeles Low-Key Theft

Mark Karpeles Low-Key Theft

Mt Gox is one of those cryptocurrency scams that gets worse the more you hear about it. The even smaller aspects of the case are insane, and this is one of the stories that proves it.

During Mt. The Gox scandal, Mark Karpeles was the company's chief manager. Given that hackers are stealing bitcoins from the company from every angle, he did what not every manager should be doing.

He decided to steal $1 million for himself, in the hope that it would form his golden parachute. He then transferred another $3 million from customer accounts to his account, hoping that no one would notice.

People noticed, and this new theft became one of the more hilarious ways criminals get caught. He is pleading not guilty, and is likely to face five years in prison at the end of his trial.

Back in 2014, Neo & Bee was one of the top cryptocurrency startups. It was a Cyprus-based company working to build itself a bitcoin bank, and was led by bitcoin maverick Danny Brewster.

Fundraising was underway and it looked like Neo&B were set to become a major player in the crypto scene. It had a physical location, a full ad campaign, Work!

Everything went well till Mt. Gox collapses, taking Neo and Bee along. Rumor had it that there was an "accounting error" that showed the company to be much wealthier than expected.

Either way, Brewster ended up arguing with a fellow producer, and the company turned. The money invested in it also disappeared. Shortly after, Brewster is struck with an arrest warrant, and disappears upon hearing the news.

Recently, they have pledged to pay back investors, but that seems unlikely. Either way, he is now seen as a bitcoin villain due to his role in one of the biggest cryptocurrency scams of the year.

The Silk Road Arrests

The Silk Road Arrests

When it was first invented, the Silk Road was the dark web's open air market—and as you can imagine, the transactions were pretty illegal for the most part. Drugs, child pornography and weapons were regularly sold there.

For a very long time it seemed that the creators of Silk Road were invincible. Bitcoin could not be traced ... until it was. The Silk Road closed due to bitcoin transactions, and that's when people realized that it was not impossible to trace crypto.

Silk Road founder Ross Ulbricht was collared during this raid. Others, including Charlie Schrem, were quipped by the FBI for money laundering in relation to the site. Despite seeking a plea, Shrem was sentenced to two years in prison.

These days, arrests are seen as a warning sign for those who want to tread on the dark side of things. If you ask who would be the perpetrators, the Silk Road arrests were the most chilling cryptocurrency scams in history.

NiceHash was a cryptocurrency exchange that allowed miners to buy and sell energy. There was no prepayment for the energy they received, and sellers would be paid in bitcoin.

Somehow, the hackers were able to breach the Slovenia-based company and take users out of their accounts. Those who tried to log in found themselves locked with a message that the site is under maintenance.

Eventually, the news came out of the cyberattack that hit NiceHash. The hacking group responsible for the attack went on with over 4 million bitcoins, making it one of the biggest bitcoin thefts in history – as well as one of the most devastating cryptocurrency scams of 2017.

In the old days of bitcoin, investing in cryptocurrencies was still a relatively new concept. This is why Trendon Shavers decided to launch a Ponzi scheme similar to Bernie Madoff.

He promises that he can help people invest in bitcoin and become successful, guaranteeing a 7% return every year. He then accumulated 7% of all bitcoins in circulation, and used them to pay returns, allowing investors to support his investments.E

Eventually the officers caught up. He was ordered to pay $1.2 million to investors, and spent nearly a year in prison for his crime. At the time, it was one of the first cryptocurrency scams to reflect the Madoff scheme. It wasn't the last.

The Singapore Bitcoin Scandal

The Singapore Bitcoin Scandal

One of the latest cryptocurrency scams to hit the world recently took place in Singapore. Mr. Pang, a wealthy man from Malaysia, decided to move to Singapore to buy bitcoins in cash directly from a broker.

He had gone to Singapore with his broker and a briefcase worth $365,000. When he met Sampark, they thrashed two men and stole his briefcase. shocking? Not enough, but the sheer amount of stolen money created a ruckus.

If you choose to buy bitcoin, do not bring cash for yourself to an in-person meeting. This is really bad common sense!

If there was one country that made it clear that they don't like cryptocurrencies, it is India. The country passed extremely strict laws governing the trading of cryptocurrency, with many politicians labeling the currency as bad.

This sounds pretty good in terms of being a conservative country, but a scandal erupted when news emerged that the Bharatiya Janata Party was receiving and circulating about $12 million in cryptocurrency.

As is known, the BJP actually gained power by promising to end the shadow economy and end cryptocurrencies in the country. strange.

CoinOne's Margin Trading Scandal

CoinOne's Margin Trading Scandal
Trading on margin is rarely a good idea, especially if you are in a highly speculative sector such as cryptocurrency. CoinOne is one of the only bitcoin exchanges to offer trading on margin, and it seems like a great idea to offer this feature to more experienced traders.

Unfortunately, it turned out to be one of the recent cryptocurrency scams to hit the scene. It was later revealed that the reason for this feature was that most executives were using margin trading to gamble with bitcoin.

Finally, one of the biggest cryptocurrencies of all time is related to a very historical event: the 2016 election in the United States. It is becoming increasingly clear that Trump was placed in a position of power by the Russian government.

FBI officials recently announced that funding for the Trump campaign was sent via bitcoin via the dark web, and that the servers used to house WikiLeaks were also purchased using cryptocurrency.

As more details emerge, the scam is becoming more sinister. This case is not over yet. Whatever the future, it's going to be insanely insane.

0/Post a Comment/Comments

Previous Post Next Post