Big Spotlight, Bigger Scams: 5 Crypto Projects That Grabbed Headlines—For the Worst Reasons
Here’s a rundown of five infamous crypto scams—high-profile frauds that once captured attention before spectacularly falling apart.
1. BitConnect
Promising a “Bitcoin trading bot” with 1% daily returns, BitConnect ran a lending platform whose token (BCC) soared to about $463 before crashing below $1 in January 2018. After regulators shut it down, investors lost over $2.4 billion. The founder and U.S. promoter faced SEC charges for running a Ponzi scheme targeting retail investors.
2. OneCoin
Touted as the “Bitcoin Killer,” OneCoin was actually a $4 billion pyramid scheme dressed up with flashy events and awkwardly worded “educational packages.” It had no real blockchain, mining, or tradable tokens. Its founder, Ruja Ignatova, disappeared in early 2017, and authorities worldwide label it one of the largest crypto frauds ever.
3. PlusToken
Starting in 2018 as a rewards wallet, PlusToken lured users mainly in China and South Korea by promising 9–18% monthly returns. Its mid-2019 collapse exposed a $2–3 billion Ponzi scheme, sparking massive Bitcoin sell-offs that crashed prices and shattered investor trust.
4. WoToken
Created by the same group behind PlusToken, WoToken was another multi-level marketing crypto wallet scam. Over just a year, it defrauded 715,000 users, stealing over $1 billion in a pyramid scheme before arrests followed.
5. Centra (CTR Token)
Centratech raised $32 million via an ICO promoting a “Visa/Mastercard crypto debit card” backed by celebrity endorsements from Floyd Mayweather and DJ Khaled. But investigations uncovered fake executives, no licenses, and a nonexistent airline partner. The SEC charged its founders with fraud, leading to prison sentences and token forfeitures.
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What These Scams Shared:
Celebrity endorsements and slick marketing
Promises of guaranteed, unrealistic returns
Lack of genuine technology or outright deception
Heavy dependence on recruiting new investors to pay earlier ones
All made global headlines only to collapse under legal pressure, huge investor losses, and ruined reputations—a sharp reminder that fame doesn’t equal trustworthiness.
⚠️ Key Lesson: If an opportunity looks too polished, promises sky-high returns, or has vague team details—do thorough research before investing.