Cryptocurrency is, without a doubt, the hottest financial market in the world right now. It is well known for its innovative approach, spearheading the innovative blockchain-based distributed ledger technology and peer-to-peer non-interventional transactions.
Despite its prowess, the industry cannot help shake up concerns related to fraud. Scams have been synonymous with cryptocurrencies since we first started hearing about them, and their threat cannot be ignored because of the impact that has erodes trust and leads to demands for increased asset class regulations.
In this article, we look back at some of the biggest crypto-related scams in history, touching on the methods and the long-term outcomes of a wider industry.
The Five Biggest Cryptographs in History
Rank | Scar name | Estimated loss | Year of exposure |
---|---|---|---|
1 | Mt. Gox | $40b + | 2014 |
2 | FTX Exchange | 8-1 billion dollars | 2022 |
3 | onecoin | 4.4 billion dollars+ | 2017 |
4 | thodex | 2.2 billion dollars+ | 2021 |
5 | Plastken | 200 million dollars+ | 2019 |


1. Mt. Gox: Over $4 billion (estimated loss)
Japanese cryptocurrency exchange Mt. Gox It was one of the first digital asset trading platforms to date, and at its peak, Bitcoin-only exchanges processed 70% of all BTC transactions. However, concerns began to rise after halting in 2014, citing technical issues and halting suspected of withdrawal. This warned the authorities.
Research shows that Mount Gox suffered misuse, leading to around 850,000 BTC, worth more than $450 million at the time, and was stolen. The hack comes from poor internal security measures and years of mismanagement. Mark Calpele, the exchange founder and CEO, quickly declared bankruptcy and was sentenced to prison. Unfortunately, Gox Mountain customers never regained Bitcoin. The booty led Japan to formalize crypto exchange regulations under the Financial Services Agency (FCA), one of the earliest adopters of crypto-centric compliance standards. The stolen coins are worth more than $40 billion today.
2. FTX Exchange: $8 million to $10 billion (estimated loss)
FTX was the third largest cryptocurrency exchange by trading volumes, promoting users around the world through celebrity support and sports team partnerships. Its founder, Sam Bankmanfried, was featured in Forbes magazine as the youngest crypto billionaire. But things fell crashed in late 2022 after a Bombshell article by Coindesk revealed that a transaction below the table between FTX and its sisters – Company, Alameda Research.
It appears that FTX had clearly moved its client capital to market manufacturers and investment companies, which was estimated to be one of the institution’s clients, investing outside of business and paying off debt. About $10 billion in client funds have gone missing, causing one of the biggest bare markets in the history of the crypto industry. Bankmanfried was arrested in the Bahamas in December 2023 and is currently spending his time in a US prison. The FTX crash has led to a major crackdown on US crypto companies, with regulators imposing strict governance on their trading platforms.
3. Onecoin: $4.4 billion (estimated loss)
onecoin scam Crown is crowned as the king of all crypto fraud. The pyramid scheme run by a woman named Ruja Ignatova has been able to attract billions of dollars in investments from investors in 175 countries.
Alongside her husband, she seduced users into a multi-level marketing scam while selling educational packages and other rewards. In 2017, their fraud was revealed after the project collapsed and founders embezzled an estimated $4.4 billion. Ignatoba’s husband and other core members of Onecoin have been arrested, and Interpol has issued a wanted notice for the self-proclaimed “Crypto Queen.” After running for more than five years, she was finally arrested in 2023 and faced 20 years in prison.
4. THODEX: $20 + billion (estimated loss)
Thodex was a Turkish cryptocurrency exchange founded in 2017 by Faruk Fatih Ozer. He has attracted investors to deposit their digital assets on the platform by committing to a free Dogecoin (Doge), which brings a $2.2 billion pool.
In early 2021, the platform was shut down for scheduled six-hour maintenance and was later extended to five days. Following customer complaints, law enforcement officials led the investigation, finding that the founder stopped trading and won billions of user funds. He has never been found. The event has prompted Turkish authorities to introduce emergency measures to mitigate crypto fraud by implementing strict regulations.
5. Plustoken: $20+1 billion (estimated loss)
Plustoken is a cryptographic ponzi scheme that operated as a high-yield cryptocurrency wallet that promised a return of up to 30% of deposits from China. What was happening behind the scenes was pooling funds from new investors and paying early investors in a classic Ponzi structure.
The operation ended in 2019, when the founders hit millions of dollars with 180,000 BTC and 6 million ETH, as well as other tokens worth more than $2 billion as of 2025. Plustoken has become a global case study of Crypto Anti-Money Laundering (AML) practices. Financial Conduct Task Force (FATF).
What is crypto fraud?
Crypto fraud is a rigged operation run by bad actors who use a variety of malicious means to steal digital assets from unsuspecting investors. It comes in all shapes and sizes, from phishing scams to rag pulls, ponzi schemes, fake wallets, horror mail, fake jobs, investment scams and more.
Most scams can be narrowed down to one of two forms.
- An activity that encourages victims to be willing to transfer codes to malicious actors. The main examples of this type are romance scams, false or fraudulent business or investment opportunities, addressing addiction scams.
- A deceptive or fraudulent scheme in which a fraudster attempts to access a victim’s wallet through a phishing scheme that includes fake transactions or airdrop platforms.
How to identify crypto fraud?
Here’s how you can find potential scams and stay safe when dealing with cryptocurrencies:
- Always read the project whitepaper before investing. Allow time to explore the blockchain, token, or trading platform white papers to learn about the utilities and see if they are trustworthy. If the white paper does not provide clarity, it is safe to assume that the project may be fraudulent.
- Please be aware of any emails or messages you receive Cryptocurrency exchange Or the wallet can sometimes send malicious links that require bad actors to impersonate the real platform and provide seed phrases and private keys. Trustworthy projects do not ask for a private key through email.
- If crypto projects promise unfairly large returns on deposits or investments in fairly short periods, they could be fraudulent. Legal protocols understand that Crypto takes time to generate significant returns, and as it is a volatile market, we cannot guarantee ROI.
- If the project is permeated with excessive marketing and there is no foundation to support it, it is probably a scam. Legal crypto projects are more likely to be sold through strategic partnerships and improved utility.
Final Thoughts
The fraudulent platform mentioned in this article stole nearly $30 billion in code from customers who entrusted digital asset holdings. These events revealed why they would make crypto independent and buy and sell tokens using a trusted, regularly audited platform. These are the top five crypto frauds in history.
Follow the tips in this article to find potential scams and protect your cryptocurrency. As a general rule of thumb, always do your research and seek expert advice before making any crypto-related investment decisions.