Over the past 5 years, it has been reported that more than 20 billion USD (!) have been stolen in various cryptocurrency Ponzi schemes. As AI becomes more widely available, we are seeing scammers increasingly leveraging the technology. We have seen standard AI-written whitepapers, deepfake videos of a “project founder,” and, not to mention, Telegram groups “managed” by chatbots impersonating legitimate blockchain projects. Most new entrants to the crypto Ponzi scheme list have used AI-facilitated pretenses, making it even harder to tell legitimate from phony ventures for average investors. This new era of technological innovation makes investors even more cautious and research-driven before investing money.
Despite its outlandish claims, GainBitcoin managed to accumulate over $300 million in investments from Indian participants. However, investigations later revealed that the project had no physical mining equipment or mining operations, exposing it as an elaborate Ponzi scheme. A crypto Ponzi scheme is an elaborate investment scam that entices investors with the promise of high and quick returns, leveraging the allure of cryptocurrencies. In this fraudulent scheme, the perpetrators create fictitious crypto enterprises and manipulate investors with compelling narratives and false statistics. Their primary objective is to collect money from new investors and distribute it as supposed profits to earlier backers, giving the illusion of a successful investment endeavor.
Binance support didn’t offer a reasonable feedback to why even though I went through verification. I was very frustrate and my trust in the crypto space was lost… I read about Lionsgate at Quora and I contacted them via email. An agent at Lionsgate reviewed my file with me and resolved my case within 48 hours after I opened a case with the company. If you’ve been affected by a crypto scam, you are entitled to a case evaluation. Unfortunately, Ponzi scheme operators are skilled at concealing these red flags and manipulating investors’ emotions, enabling them to thrive even in today’s digital age, a century after Charles Ponzi himself. Let’s explore ten of the biggest cases where investors found themselves receiving more than they had initially anticipated from some of the most notorious bad actors in the crypto ecosystem.
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That said, some names on the crypto Ponzi scheme list have defrauded investors through unauthorized or misleading leveraging of public figures to inculcate a false sense of security. Investors must make informed decisions based on transparent business practices, auditable histories, and regulatory status, rather than popularity or fame, when considering crypto opportunities. Ether Trade Asia operated as a crypto trading platform, offering investors a daily return of 3% on their investments. However, when users attempted to withdraw their tokens, the platform constantly cited “technical glitches” as the reason for the inability to process withdrawals. The lack of transparency, including the absence of a physical address or contact information, raised further suspicions regarding the legitimacy of Ether Trade Asia.
Dekado – DKD Price ~BTC
- Investors were lured into depositing a minimum of INR 15,000, with the promise of a daily return of INR 270 or a 4.4x profit.
- A crypto Ponzi scheme is an elaborate investment scam that entices investors with the promise of high and quick returns, leveraging the allure of cryptocurrencies.
- In the realm of cryptocurrency, now that you have gotten yourself acquainted with the full crypto Ponzi scheme list, Ponzi schemes pose a significant threat to unsuspecting investors.
- Launched in 2016, Bitconnect gained significant attention as a Bitcoin lending solution, assuring investors monthly returns of up to 40%.
- Binance support didn’t offer a reasonable feedback to why even though I went through verification.
- That said, some names on the crypto Ponzi scheme list have defrauded investors through unauthorized or misleading leveraging of public figures to inculcate a false sense of security.
Their team was incredibly knowledgeable and professional throughout the entire process, and I was able to recover my lost funds thanks to their expertise. The only downside was that I had to pay in advance, which was a bit of a strain on my finances at the time. However, I do understand that this is standard practice in the industry, and I am just grateful to have received my funds back. I highly recommend Lionsgate Network to anyone who has lost their crypto and needs a reliable and trustworthy team to help them recover their funds.”
- The scheme attracted approximately 1.1 million individuals, primarily from India.
- However, I do understand that this is standard practice in the industry, and I am just grateful to have received my funds back.
- If you’ve been affected by a crypto scam, you are entitled to a case evaluation.
- Over the past 5 years, it has been reported that more than 20 billion USD (!) have been stolen in various cryptocurrency Ponzi schemes.
Dekado (DKD) Technology and Details
Exploiting the famous price volatility and hype of digital assets and the complex nature of their underlying technology, fraudsters pitch vague and unrealistic crypto investment solutions to unsuspecting investors. They capitalize on the growing allure of crypto assets, the desire to discover the “next Bitcoin,” and the general lack of public education regarding the fundamentals of crypto technology. In an era where everybody wants to be a millionaire, these malicious actors have discovered a seamless pathway to siphon off billions of dollars annually. In 2016, GainBitcoin emerged as a cloud mining solution based in India, attracting investors with promises of 10% monthly returns for 18 months.
Price Statistics
The future of preventing scams lies not only in being familiar with crypto but also with the tools being used by scammers today to disguise their scams. During the height of the Bitconnect fraud, Michael James and Raymond Weil introduced Regalcoin, a similar staking scheme. Regalcoin enticed investors by promising monthly returns of up to 50% for holding their newly introduced token. While the crypto was listed on a few exchanges, its value plummeted from over $70 in October 2017 to a mere $0.005 in 2019.
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However, the scheme eventually collapses when new investments dwindle. PlusToken stands as one of the largest and most recent Ponzi schemes in the crypto world. The scam primarily targeted Chinese investors, leveraging the popular messaging app WeChat for marketing purposes. PlusToken enticed investors with promises of monthly returns ranging from 10% to 30%.
Company filings indicated that Regalcoin Corporation dissolved in September 2019, leaving investors devastated. Although similar in some aspects, a pyramid scheme differs from a Ponzi scheme in its structure. Like a dekado coin Ponzi scheme, a pyramid scheme relies on new investments to pay returns to earlier participants.
A Ponzi scheme disguises itself as a legitimate venture, claiming to generate profits through services or product sales. On the other hand, pyramid schemes do not attribute the alleged profitability to any legitimate business activity. Instead, they focus solely on the inflow of new investments without a genuine revenue-generating mechanism.
In the realm of cryptocurrency, now that you have gotten yourself acquainted with the full crypto Ponzi scheme list, Ponzi schemes pose a significant threat to unsuspecting investors. These elaborate investment frauds exploit the allure of crypto’s innovative technology and the potential for substantial profits. Scammers take advantage of the lack of crypto education among many individuals around the world. Dekado Coin, orchestrated by Divyesh Darji, Ranjeet Saxena, and their partners, managed to scam investors on two occasions.
The scheme promised significant monthly returns on Dekado Coin investments, attracting a substantial user base from countries like India, Indonesia, the Netherlands, and Africa. However, after the launch, the website suddenly went offline, leaving investors unable to access their accounts. Dekado Coin became one of the prominent crypto Ponzi schemes that caused substantial financial losses. However, alongside these promising prospects, there is a recurring issue of crypto scams, ranging from small-scale schemes to larger-scale operations.