PointPay experts know where there’s a lot of money, there’s usually fraud. And when it comes to cryptocurrencies, there are a lot of crypto scams out there. Unfortunately, people have been scamming since the human race began. And while the brightest minds used the crypto revolution to bring new exciting technologies to the market, others have used it to trap ignorant investors.

Unfortunately, without proper control, the cryptocurrency market has become a ‘home sweet home’ to different crypto scammers. With experts from PointPay, let’s take a look at some cryptocurrency scams that shocked the world.

OneCoin — the biggest cryptocurrency scam in history

The OneCoin case is still described as the biggest cryptocurrency scam in history. It was a classic Ponzi scheme posing as a real crypto. Launched by a Bulgarian ‘Cryptoqueen’ (now convicted fraudster) Ruja Ignatova in 2014, the crypto scam attracted not thousands but millions of investors.

Through catchy messaging, the fraudster convinced people from more than 150 countries to buy special OneCoin packages of educational materials and the native tokens of the project. Ignatova told people they would get rich, but everything was just a crypto scam. The OneCoin scheme brought in approximately $4 billion.

PlusToken — a Ponzi scheme

PlusToken was another Ponzi scheme that mainly had investors from China and South Korea. It was a platform that claimed to operate arbitrage between crypto exchanges, guaranteeing high returns. Launched in 2018, the fraudsters running the platform amassed sizeable bags in just one year. The PlusToken native token was listed on several Chinese crypto trading platforms, and the project reached unbelievable heights in late 2018. However, in 2019, investors suspected something was wrong as withdrawals dried up.

Bitconnect — a high-level but archetypal crypto scam

Many of you have probably heard about this high-level but archetypal crypto scam. It was open-source crypto that was connected with a high-yield investment program. In other words, Bitconnect can be considered a type of Ponzi scheme. Launched in 2016 to allow users to lend the value of Bitconnect Coin in return for interest payments, the project scammed about $4 billion. The Bitconnect founder, Satish Kumbhani, lured investors in through claims of having an unbeatable trading algorithm that most likely never existed.

BitClub Network — a fraudulent scheme to solicit money

BitClub Network is a notable fraudulent scheme that solicited money from traders and investors in exchange for shares of purported crypto mining pools. It rewarded investors for recruiting new participants into the scheme. As with OneCoin or Bitconnect, scammers used an effective marketing plan to deceive investors and bring in more than $700 million. A Romanian programmer behind BitClub Network pleaded guilty and faced five years in prison with a fine of $250,000.


Quadriga initially was Canada’s leading and trusted crypto trading platform. After its CEO, Gerald "Gerry'' Cotten,  mysteriously died in 2018,  investors lost access to about $250 million. How did that happen? The founder was the only one with access to the private keys holding this amount. No surprise his death sparked online debates and string theories. Many believed Cotten faked his death to disappear with the investors’ money. What is more, after further investigations, it was revealed that his past identity was muddier than everyone thought. It is believed that Quadriga has been run fraudulently from the very beginning, and Gerald Cotten experienced running other crypto scams.

Smarten up with PointPay and don't fall victim to a crypto scam

The above cryptocurrency scams show the extreme lengths that fraudsters are ready to go to steal millions and even billions of dollars. Even advanced and enthusiastic experts at PointPay understand there are many new and evolving risks in the crypto world right now.

There are various red flags to look out for when it comes to crypto investments and trading. Do your own thorough research, forget about making rash decisions, and remember that if an offer or a project sounds too good to be true, it probably is.

Stay safe with PointPay!

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