Crypto scams: Definition, types of scams, and tips to protect yourself

Introduction to scams

General definition of a scam

A scam is a fraudulent scheme designed to deceive a person or organization into giving them money, data, or other resources. Scammers use a variety of techniques, from psychological manipulation to complex schemes that exploit technology and misinformation .

cryptocurrency world , scams are rife due to the decentralized nature of the industry and the lack of strict regulations. Many investors, lured by promises of high returns, fall into traps set by experienced cybercriminals.

Origin and etymology of the term " scam "

The word " scam" originates from slang English and means "swindle" or "deception." It is widely used in the financial and technology fields to refer to fraudulent schemes designed to defraud victims.

With the rise of cryptocurrencies , this term has become a common term in the blockchain ecosystem to describe fraudulent projects and dishonest schemes, whether they are fake investment platforms, phishing scams or rug pulls .

Difference between scam, fraud and swindle

Although these terms are often used interchangeably, they have distinct meanings:

• Scam : A deceptive maneuver aimed at extracting money or personal information.
• Fraud : A crime punishable by law that involves intentional deception to obtain financial advantage.
• Fraud : A legal offense based on deceptive tactics to obtain goods or services unduly.

Why cryptocurrencies are a prime target for scammers

Cryptocurrencies provide an ideal breeding ground for scams due to several factors:

1. Anonymity : Crypto transactions are pseudonymous, making it difficult to identify fraudsters.
2. Irreversibility : A transaction confirmed on the blockchain cannot be canceled, which prevents any refund in the event of fraud.
3. Lack of strict regulation : Unlike traditional banking systems, cryptocurrencies often escape the controls of financial institutions.
4. Promises of quick profits : Many inexperienced investors are lured by offers that seem too good to be true.

Examples of famous scams

Here are some examples of scams that have rocked the crypto world :

Scam	Year	Financial damage
OneCoin	2016	$4.4 billion
Bitconnect	2018	$2 billion
PlusToken	2019	$2.9 billion

Investors should remain vigilant and do their research before committing their money to a crypto project. Thorough analysis and the use of tools like TokenSniffer or RugDoc can help detect early signs of scams .

Common characteristics of scams

Typical elements of different scams

scams often follow similar patterns:

• Promise of guaranteed returns : A project that promises huge gains without risk is suspicious.
• Aggressive Marketing : Massive advertising, use of unscrupulous influencers and FOMO (fear of missing out) tactics.
• Lack of transparency : Anonymous team, unclear white paper, or poorly designed website.
• Lack of liquidity : Difficult or impossible to withdraw funds after deposit.
• Pressure to invest quickly : Scammers use urgency to prevent thorough due diligence.

Typical profiles of scammers and victims

Scammers often pose as crypto experts , seasoned traders , or influential people on Twitter or YouTube. They may also hide behind fake tech support or " Telegram bots " offering fraudulent airdrops .

Typical victims are:

1. New investors : Attracted by promises of quick profits.
2. Cryptocurrency holders looking for opportunities : Ready to test new projects without conducting a thorough audit.
3. Vulnerable people : Seniors, young adults without financial experience or users unfamiliar with digital security.

Psychological techniques used by scammers

Fraudsters exploit various psychological tactics:

• FOMO (Fear Of Missing Out) : Fear of missing out on a unique opportunity.
• Social proof : False validation through fictitious testimonials or fake influencers.
• Authority : Using famous figures to inspire trust.
• Commitment and consistency : A small initial investment encourages you to deposit more.
• Time pressure : “ Limited ” offers or exclusive pre-sales .

Role of anonymity and decentralization in crypto scams

Blockchain offers advantages to users, but also to scammers:

• Pseudonymity : Difficult to trace the identity of fraudsters.
• No middleman : No banks to block or reverse a suspicious transaction.
• Global Access : Scammers operate without borders.

Knowing these mechanisms is essential to staying vigilant and protecting your assets in the crypto world.

How Common Scams Work

Planning and Execution of Scams

scams aren't random. They typically follow a well -established strategy that unfolds in several stages:

1. Target identification
   • Scammers analyze investors' profiles on Telegram , Twitter, Discord and other platforms.
   • They target beginners or those looking for high-yield investments.
2. Setting up the scam
   • Creation of an attractive website, often a copy of a legitimate site.
   • Development of a fake token , a fake DeFi project or a fraudulent platform .
3. Baiting victims
   • Aggressive advertising through influencers, bots, or fake promotions.
   • Using free airdrops or promises of high passive earnings .
4. Fundraising
   • Request for initial deposit or purchase of tokens to access exclusive services.
   • Exploitation of trapped smart contracts to empty wallets.
5. Disappearance of the scammers
   • Funds are transferred to anonymous addresses or laundered through mixers .
   • The website and communication channels are deleted.

Typical steps of a scam

A crypto scam often follows a well-defined sequence:

Stage	Description
Promotion	Aggressive marketing with promises of returns.
FOMO & Emergency	Creating a sense of rarity and unique opportunity.
First investments	Victims invest small amounts.
Snowball effect	Other investors join the project.
Blocking withdrawals	Victims can no longer recover their funds.
Exit scam	The scammers disappear with the money.

Concrete examples of famous scams

Many scams have marked the history of cryptocurrencies:

1. Bitconnect (2018)
   • Presented as a revolutionary lending platform.
   • Ponzi scheme that collapsed after the creators fled.
   • Estimated loss: $2 billion .
2. OneCoin (2016-2019)
   • Fake crypto project that didn't even have a real blockchain.
   • Massive Ponzi Scheme Run by Ruja Ignatova , still on the run.
   • Estimated loss: $4.4 billion .
3. Squid Game Token (2021)
   • Inspired by the Netflix series, this token has attracted many investors.
   • Rug pull : the creators drained the liquidity before disappearing.
   • Estimated loss: several million dollars .

The case of rug pulls and shitcoins

Rug pulls and shitcoins are very common scams in the crypto universe:

• Rug pull : A project attracts investors, accumulates funds, then removes liquidity.
• Shitcoins : Tokens created without real value, often for pump & dump .

How to detect a rug pull?

Warning signs :
– No smart contract audit . –
Anonymous team .
– Token with low locked liquidity .
– Unable to sell tokens after purchase.

Useful tools: TokenSniffer , RugDoc , DEXTools .

The most common crypto scams

Cryptocurrency scams are on the rise and take various forms. Some are more common and particularly dangerous for investors. Here's an overview of the most common crypto scams .

Rug pulls (projects that disappear after fundraising)

A rug pull is a common scam in the crypto world. It involves a project that attracts investors by promising high returns , raises massive funds , and then disappears, removing all liquidity.

Famous examples of rug pulls

Project Name	Year	Estimated loss
Squid Game Token	2021	Several million dollars
Thodex	2021	$2 billion
AnubisDAO	2021	$60 million

Warning signs of a rug pull :
– Anonymous team with no known history.
– No transparency on the smart contract code .
– Low liquidity or unlocked liquidity.
– Unrealistic promises of return.

Ponzi Pyramids and MLM Schemes in Crypto

Ponzi schemes operate by paying existing investors with the money of new entrants, without generating any real value .

Famous examples :

• Bitconnect (2018) – Over $2 Billion Stolen .
• OneCoin (2016-2019) – Over $4.4 billion in losses .
• PlusToken (2019) – Approximately $2.9 billion embezzled .

How to spot a Ponzi scheme?
– Guaranteed fixed returns (impossible in crypto).
– Referral system based on recruitment.
– Lack of real product or service .

Fake wallets and fake apps to steal private keys

Some fraudulent apps pretend to be official crypto wallets to trick users into storing their funds there.

Risks :

• Private keys are stolen as soon as they are imported.
• Deposited funds are immediately siphoned off.
• The interface resembles that of a real wallet (eg MetaMask , Trust Wallet ).

How to avoid these scams?
– Download only from official sites or Google Play/App Store .
– Check reviews and number of downloads .
– Use wallets. non- custodial secure .

Airdrops and Giveaway Scams

Fraudulent airdrops and giveaways promise free tokens to entice victims to:

1. Connect their wallet to a booby-trapped site.
2. Provide their private key (never to be shared!).
3. Send an amount in crypto to “verify” the address.

Example: Elon Musk's fake giveaways on Twitter .

• Scammers impersonate Musk and promise to double the crypto sent .
• Thousands of investors lost millions of dollars .

How to avoid these scams?
– Never send crypto to “receive” an airdrop .
– Check the official source of the offer.
– Avoid connecting your wallet to unverified sites.

Fake technical support (fake customer support scam)

Fake customer service providers are posing as Binance , Coinbase , Ledger , Trust Wallet , etc. to scam users in difficulty.

Techniques used :

• Fake emails or fake support chats .
• Request for private key or recovery phrase .
• Remote wallet takeover .

How to protect yourself?
– Never share your recovery information. –
Contact support
through official websites . – Check if a Twitter or Telegram account is certified .

Phishing and identity theft on Telegram , Twitter, Discord

Phishing is a classic attack where scammers create fake pages to trick users and steal their credentials .

Common examples :

• Fake login to Binance or MetaMask .
• Scammers imitating crypto influencers on Twitter.
• Telegram groups with fraudulent admins .

Best practices to avoid phishing :
– Always check the URL before logging in.
– Enable two-factor authentication on platforms.
– Never click on a suspicious link received in a private message.

Conclusion

scams are constantly evolving, exploiting investors' psychological and technological weaknesses. To protect yourself, it's crucial to adopt rigorous security practices and be wary of offers that sound too good to be true .

Tactics specific to crypto scams

Scammers are using increasingly sophisticated techniques to trap their victims. Some strategies are specific to cryptocurrencies and exploit investors ' emotions , security flaws , and inexperience . Here are the most common tactics used by scammers.

Fake influencers and fake promotions

Social media has become an ideal hunting ground for crypto scammers. They impersonate influencers or public figures to give the illusion of legitimacy to their scams .

Famous examples

• Elon Musk Bitcoin Scam : Scammers used fake Twitter accounts to promise to double bitcoins sent .
• Fake YouTube influencers : Sponsored videos promote fraudulent crypto projects.
• Celebrity deepfake : AI creates fake interviews where celebrities recommend bogus investments.

How to recognize them?
– Check verified accounts on Twitter and Instagram.
– Be wary of promises of quick wins .
– Never send crypto for a giveaway .

Exploiting FOMO and Pump & Dump

FOMO ( Fear of Missing Out ) is a psychological tactic aimed at pushing investors to buy without thinking .

Pump & Dump Strategy

1. Massive promotion of a token via Telegram , Twitter, Reddit .
2. Artificial increase in price ( pump ) with mass purchases by insiders .
3. Sudden sale of tokens by creators (dump), leaving investors with worthless assets .

Examples of Pump & Dump

Token	Year	Fall after the dump
SaveTheKids	2021	-90% in 24 hours
Mooncoin	2022	-95% in 48 hours

How to avoid a Pump & Dump?
– Check if large investors are selling their tokens .
– Be wary of projects heavily promoted by influencers .
– Analyze the project's liquidity and history.

Malicious smart contract scams

Some scammers inject traps directly into their projects' smart contracts . Once investors deposit their funds, they become inaccessible .

fraudulent smart contracts :

• Blocks withdrawals (investors cannot recover their tokens ).
• Secret transaction tax (each sale results in a massive loss).
• Hidden admin rights (creators can drain the liquidity pool ).

How to avoid this type of scam?
– Check the contract source code on Etherscan or BscScan .
– Analyze the contract with tools like TokenSniffer or RugDoc .
– Be wary of projects without an audit by a recognized company ( CertiK , Hacken ).

Security issues of DEXs and inter-blockchain bridges

exchanges (DEX) and inter-blockchain bridges are often the target of sophisticated attacks .

Common faults

1. Smart contract exploits (e.g. Wormhole hack in 2022: $320 million stolen ).
2. Flash loan attacks (instant loans to manipulate prices).
3. Vulnerabilities in bridges connecting different blockchains.

How to protect yourself?
– Avoid using little-known DEXs and bridges .
– Check for hacking history before investing.
– Use secure wallets and limit exposed funds.

Conclusion

scams are becoming increasingly sophisticated, exploiting technical and psychological vulnerabilities . Staying informed and practicing good security practices is essential to avoid losing your funds .

Recent Evolution and Trends of Crypto Scams

The cryptocurrency landscape is evolving rapidly, and scammers are constantly adapting their strategies to exploit new opportunities. With the rise of NFTs , the Metaverse , DeFi , and AI , scams are becoming more diverse and harder to detect.

Scams via NFTs and Metaverse

NFTs ( non-fungible tokens ) and Metaverse projects attract many investors looking for opportunities. However , this popularity also makes them a playground for scammers.

Types of NFT scams

• Rug sweaters NFT : Creation of an NFT collection, massive sale, then disappearance of the founders.
• Fake mintings : Fraudulent link requesting a connection to the wallet to empty funds.
• Famous Collection Plagiarism : Fake NFTs Copied from Bored Ape Yacht Club, Azuki, etc.

How to avoid NFT
scams ? – Check if the project is listed on OpenSea , LooksRare , Blur .
– Analyze the community (avoid Discord sites full of fake bots). – Never connect your wallet to an unknown site.

Problems with DeFi hacks and fake platforms

DeFi (decentralized finance) protocols are regularly the target of sophisticated attacks, often caused by smart contract flaws or internal scams .

DeFi hacks

Project	Year	Amount stolen
Ronin ( Axie Infinity )	2022	$620M
Poly Network	2021	$611M
Nomad Bridge	2022	$190M

DeFi platforms

• False yield Farming : Promises of extreme yields, then disappearance.
• Fake decentralized exchanges : Deposit funds impossible to recover.
• Clones of popular DEXs (eg fake Uniswap , PancakeSwap ).

How to protect yourself?
– Check if the project is audited ( CertiK , PeckShield ).
– Never invest more than you are prepared to lose .
– Avoid unknown or too recent projects .

Telegram bot and sniper scams

Telegram bots and automated trading tools are increasingly used for crypto trading. However, many are disguised scams .

Telegram scams :

• Fake trading bots that ask for the wallet 's private key .
• Sniper bots that take a hidden percentage of each transaction.
• Fake VIP groups asking for payment for “investment signals”.

How to avoid these scams?
– Never enter your private keys on Telegram .
– Check the bot's reputation (search on Reddit , Trustpilot ).
– Avoid groups asking for an entry fee.

AI and Deepfake Scams

Artificial intelligence technologies now make it possible to create ultra-realistic scams .

Examples of scams using AI

• Celebrity Deepfake : Fake video where Elon Musk or CZ ( Binance ) recommend a project.
• Fake customer support : AI imitating Binance or Coinbase employees .
• Voice Cloning : Scammers Impersonating Well-Known Crypto Influencers .

How to protect yourself?
– Be wary of ads that are too good to be true .
– Check influencers' official accounts before believing a promotion.
– Never click on suspicious links sent on Telegram or Twitter.

Conclusion

scams are becoming more sophisticated , using advanced technologies and sophisticated manipulation techniques . Staying informed and implementing strict security measures is essential to avoid losing your assets .

Consequences of Crypto Scams

Crypto scams have major repercussions, not only for the victims, but also for the entire market. These scams cause colossal financial losses , affect investor psychology , and damage the reputation of cryptocurrencies .

Financial loss for investors

Crypto scams cost over $14 billion in 2021, and that number continues to grow as the scams evolve.

Examples of major losses due to crypto scams

Scam	Year	Amount lost
OneCoin	2016	$4.4 billion
Bitconnect	2018	$2 billion
PlusToken	2019	$2.9 billion
Terra/Luna	2022	$40 billion

Why are losses so high?

• Irreversible transactions : Once a transfer has been made, it is impossible to recover the money.
• Lack of banking protection : Unlike traditional banks, there is no easy recourse.
• Numerous victims : Some scams affect thousands or even millions of investors .

Funds blocked on fraudulent exchanges

Many crypto platforms are created solely to steal users' funds . They operate legitimately for a while, attracting a large number of investors, and then suddenly shut down, taking all the money with them.

Examples of fraudulent exchanges :

• MT Gox (2014) : Disappearance of 850,000 BTC .
• QuadrigaCX (2019) : Over $190 million blocked after founder's presumed death.
• FTX (2022) : Collapse and disappearance of more than $8 billion in client funds .

How to avoid these scams ?
– Never leave your cryptos on an unreputable exchange.
– Favor non -custodial wallets ( Metamask , Ledger , Trezor ).
– Check the financial strength and reputation of the exchange before depositing funds.

Psychological and emotional consequences of scams

Victims of crypto scams not only lose money, they also suffer emotional consequences, sometimes very serious.

Common psychological effects :

• Stress and anxiety : Financial loss can be overwhelming.
• Depression : Some investors lose all their savings.
• Shame and guilt : Many do not dare to talk about their mishap.
• Loss of trust : Distrust of the entire crypto sector.

Testimony of a scammed investor :
"I invested $10,000 in a project that promised high returns. Within a week, it was all gone. Today, I don't dare talk about crypto anymore and I doubt every new opportunity."

Overall impact on crypto market reputation

Every crypto scam harms the entire industry, fueling distrust and pushing regulators to tighten laws.

Consequences of scams on the market :

• Loss of confidence among new investors : Fewer people dare to enter the market.
• Tightening regulations : Governments are imposing stricter restrictions.
• Legitimate Platforms Shut Down : Exchanges are forced to shut down due to excessive regulation.

Example: After the FTX affair, many countries accelerated exchange regulation, making crypto innovation more difficult.

How can this impact be limited?
– Educate investors about the risks. – Encourage audits and project transparency. – Promptly report scams to the relevant authorities.

Conclusion

The consequences of crypto scams go far beyond financial losses. They affect victims' mental health , weaken the crypto market , and attract the attention of regulators . To avoid these disasters, education and vigilance are essential.

How to protect yourself against crypto scams?

Here are the best strategies for identifying and avoiding scams.

Check smart contracts before investing

Smart contracts are the foundation of many crypto projects, but some contain flaws or malicious code that allow creators to defraud investors.

How to analyze a smart contract ?

• Use analysis tools like TokenSniffer , RugDoc or Etherscan .
• Check code transparency : A serious project makes its contract smart public and audited .
• Review permissions : Some contracts allow developers to block withdrawals .
• Analyze transactions : Suspicious activity (massive purchases, limited sales) is a warning signal .

Example of a smart contract
scam Some projects add a hidden tax preventing the resale of tokens, thus trapping investors in a rug pull .

-custodial wallets

Keeping your crypto assets safe is essential to prevent theft . A non- custodial wallet allows you to fully control your assets .

Best practices for securing your funds :

• Favor a hardware wallet ( Ledger , Trezor ) for offline storage.
• Never share your seed phrase (recovery phrase).
• Use a dedicated address for airdrops and tests to avoid scams .
• Enable two-factor authentication (2FA) on exchange platforms.

Wallet Scams

• Fake wallets : Mobile applications imitating known wallets .
• Malicious airdrops : Fraudulent tokens sent to your address, tricking you into signing a deceptive transaction.

Avoid offers that sound too good to be true

If an offer seems too good to be true , it's probably a scam .

Signs of an obvious scam :

• Guaranteed Returns : No crypto can promise fixed returns.
• Pressure to invest quickly : Scammers want to prevent any in-depth analysis.
• Anonymous or difficult to verify team : A project without identifiable founders is suspicious.
• Too hyped community without technical details : Lots of promises, but few concrete explanations.

Typical scam example
A project promises 10% return per day , asks for immediate deposit , and provides no audit . SCAM!

Tools for analyzing a crypto project

There are several tools available to detect scams before investing.

Tool	Utility	Link
TokenSniffer	Smart contract analysis and scam detection	tokensniffer.com
RugDoc	DeFi projects and detecting rug pulls	rugdoc.io
Etherscan / BscScan	Analysis of transactions and holders of a token	etherscan.io
CoinMarketCap / CoinGecko	Verification of legitimacy and trading volumes	coinmarketcap.com

Steps to follow in the event of a scam

If you are a victim of a scam , here are the actions to take immediately :

1. Stop all transactions : Do not attempt to recover your funds by sending more money.
2. Alert the community : Report the scam on Twitter, Reddit , Telegram .
3. Report the scam to the authorities :

• AMF (France) : amf-france.org
• SEC (USA) : sec.gov
• Interpol Cybercrime : interpol.int
  4. Check if there are any remedies available : Some exchanges may block scammers ' addresses .
  5. Warn other investors to prevent them from falling into the trap.

Conclusion

Protecting yourself against crypto scams requires vigilance and a good understanding of security tools . Verifying a project before investing is essential to avoid financial losses and secure your crypto assets.

Testimonials and feedback

Cryptocurrency scams have claimed many victims around the world. Some investors have lost thousands or even millions of dollars , while others have managed to detect a scam before it was too late . These testimonials provide insight into the most common pitfalls and raise awareness among newcomers to the crypto world.

Testimonies from victims of crypto scams

Victim stories show that crypto scams can affect anyone, from new investors to experienced traders.

The fake airdrop that emptied a wallet.
Jean, a crypto investor for three years, received an unsolicited airdrop on his wallet . Curious, he attempted to exchange these tokens on a decentralized platform. The result : By signing a transaction, he authorized a malicious smart contract to empty his entire wallet.

A rug sweater that cost €10,000
Sophie invested in a new DeFi project promising a 15% monthly return . The team seemed reputable, the website was professional, and influencers were talking about it. After a sharp rise in the token 's price , the developers withdrew all liquidity , leaving investors with a worthless token.

Lesson: Check the locked liquidity and reputation of the project before investing.

A fake advisor stole €50,000
Marc, an experienced trader, was contacted on Telegram by a supposed crypto expert claiming to work for a well-known exchange . He offered him a VIP investment plan. After several transactions and a €50,000 deposit, the scammer disappeared , blocking access to the money.

Lesson: Never trust unsolicited contacts and check official addresses .

How some investors recovered their funds

While most victims can't do anything after a scam , some have managed to recover some of their money .

Report the scam immediately

• Some centralized exchanges ( Binance , Kraken, Coinbase ) block addresses linked to scams .
• Organizations like Chainalysis or CipherTrace can help trace stolen funds .

Legal recourse

• In Europe and the United States, regulators such as the SEC or the AMF may open investigations.
• Some victims have launched class actions against fraudulent platforms.

chain monitoring and collaboration with the community

• Etherscan tool allows transactions to be traced and the community to be alerted.
• Victims collaborated with blockchain cybersecurity experts to recover clues.

Cases of investors who detected a scam before falling for it

Some investors have avoided losing their money through careful analysis and increased vigilance .

Detecting a Ponzi Scheme Before the Collapse
Thomas became interested in a project promising fixed returns of 10% per month . Upon reviewing its whitepaper , he noticed a lack of a viable business model and a structure resembling a Ponzi scheme . He decided not to invest , and a few months later, the project disappeared with millions of dollars.

Analyzing a Suspicious
Token Laura, a crypto investor, used TokenSniffer to analyze a new token . She discovered that developers could change the contract rules and prevent investors from reselling their tokens. She avoided a rug pull .

Tip: Always check audits , consult external reviews and use tools like RugDoc before investing.

Conclusion

Testimonials show that anyone can fall victim to a scam if they're not vigilant. Analyzing projects, being wary of overly attractive offers, and using the right tools are essential to avoiding crypto scams .

Regulations and legal actions against crypto scams

scams have become a major concern for regulators around the world. Faced with the rise of these scams, governments and financial institutions are trying to implement laws and crackdowns to protect investors. However, due to the decentralized and cross-border nature of cryptocurrencies , combating these scams remains complex.

Crypto Laws and Regulatory Frameworks

Cryptocurrency regulation varies from country to country . Some governments take a strict approach , while others try to foster innovation while protecting investors .

Country/Region	Current regulations
European Union	MiCA ( Markets in Crypto-Assets Regulation ) : imposes transparency rules on platforms and limits risks for investors.
UNITED STATES	The Securities and Exchange Commission (SEC) regulates cryptocurrencies considered financial securities and prosecutes fraudulent projects.
China	Total ban on cryptocurrency transactions and mining.
Japan	Strict supervision of exchanges under the authority of the Financial Services Agency (FSA) .

These regulations aim to limit the risks associated with scams , but are not enough to eradicate them, because criminals often operate from poorly controlled jurisdictions .

Role of the SEC, FATF and other regulators

Several international organizations play a key role in the fight against crypto scams :

• SEC (Securities and Exchange Commission – USA) : prosecutes fraudulent projects and imposes fines on companies that violate financial laws. Examples: lawsuits against Bitconnect and Ripple (XRP) .
• FATF (Financial Action Task Force) : imposes anti-money laundering standards on crypto platforms.
• AMF (Financial Markets Authority – France) : publishes lists of fraudulent sites and raises investor awareness.
• Interpol & Europol : Collaborate to track crypto criminals operating globally.

Closure of fraudulent platforms

Some of the biggest crypto scams have been busted by authorities , but often after billions were lost.

Scam	Year of fall	Amount stolen	Legal actions
OneCoin	2016	$4.4 billion	Arrest of the founders, international prosecution.
Bitconnect	2018	$2 billion	Trial in the United States, seizure of remaining funds.
PlusToken	2019	$2.9 billion	109 suspects arrested in China.
FTX (Sam Bankman -Fried)	2022	$8 billion	Arrest and trial for financial fraud.

Victims' rights and possible legal action

Victims of crypto scams can take several steps to try to recover their funds:

Report the scam to local authorities

• In France: AMF, Tracfin, Cybermalveillance.gouv.fr .
• In the United States: SEC, CFTC, FBI .
• Globally: Interpol, Europol, Chainalysis .

Launch a class action

• In some cases, victims band together to sue those responsible for a scam.
• Example: Mt. Gox victims were awarded partial compensation after years of litigation.

Monitor the blockchain address of stolen funds

• Tools like Etherscan , CipherTrace , and Chainalysis help track suspicious transactions.
• Some exchanges cooperate with authorities to block scammers ' funds .

Use recovery companies

• Some private companies offer services to find and recover stolen cryptocurrencies , although their effectiveness is limited.

Conclusion

Regulators are stepping up their efforts to combat crypto scams , but criminals are always finding new ways to circumvent the laws. The best defense remains vigilance, education, and caution before investing in a crypto project.

Case Study: Example of a Large Crypto Scam

scams have caused billions of dollars in losses. Some of them have become textbook cases , exposing flaws in the cryptocurrency ecosystem and attracting the attention of regulators. Among the most notable, the OneCoin case stands out as one of the largest fraud schemes ever orchestrated in the crypto space.

Detailed analysis of a scam : OneCoin

Context and promises of the project

Launched in 2014 by Ruja Ignatova , OneCoin presented itself as the future great revolution in cryptocurrencies , rivaling Bitcoin. The promise? A guaranteed investment with exponential returns . The project relied on a multi-level marketing (MLM) system , where investors were encouraged to recruit new members to earn commissions.

Promises made to investors :

• A revolutionary token OneCoin , supposedly more efficient than Bitcoin.
• Advanced blockchain technology (that didn't actually exist).
• Paid training courses on crypto trading and investing.
• Guaranteed gains and an inevitable increase in the value of the token .

Warning signs that could have been spotted

OneCoin had all the classic signs of a scam :

Lack of public blockchain : Unlike Bitcoin or Ethereum , there was no evidence that OneCoin ran on an actual blockchain.

Pyramid model : Investors were paid by recruiting new people , not through real economic activity.

Unrealistic promises : A guaranteed return on investment is a clear red flag in crypto.

Lack of transparency : The identity of the developers was unknown, and Ruja Ignatova disappeared in 2017 , leaving her investors without answers.

Consequences and impact on the market

OneCoin has defrauded millions of investors worldwide of over $4.4 billion . In 2017, Ruja Ignatova disappeared and remains unaccounted for . Her business partner, Konstantin Ignatov , was arrested in 2019 and convicted of fraud.

Impact on the crypto market :

• Growing distrust of new cryptocurrencies .
• Acceleration of regulations in several countries.
• investor confidence in the sector.

Other similar notorious scams

OneCoin is not an isolated case. Here are other major crypto scams :

Scam	Year	Amount stolen	Nature of the scam
Bitconnect	2018	$2 billion	Ponzi & Fake Trading Platform
PlusToken	2019	$2.9 billion	Ponzi with crypto wallet
Squid Game Token	2021	$3.4 million	Rug sweater inspired by a Netflix series
FTX (Sam Bankman -Fried)	2022	$8 billion	Embezzlement of investor funds

Lessons to be learned from this case study

OneCoin case and other scams have highlighted several flaws that investors should be aware of:

– Never believe in guaranteed returns .
– Always check if a blockchain is public and transparent .
– Be wary of MLM schemes and promises that are too good to be true .
– Do thorough research before investing in a crypto project .

By understanding these warning signs , it is possible to significantly reduce risks and avoid massive losses in the cryptocurrency world.

Resources and useful links

Combating crypto scams requires vigilance, information, and the use of appropriate tools . Numerous sites, platforms, and communities allow you to analyze a project, identify warning signs, and report fraud. Here are the best resources for protecting yourself from cryptocurrency scams .

Platforms to report a crypto scam

If you are a victim of a scam or suspect a fraudulent scheme, here's where to report it:

Platform	Function	Link
AMF (Financial Markets Authority)	Reporting scams in France	amf-france.org
SEC (Securities and Exchange Commission – USA)	Reporting Crypto Fraud in the United States	sec.gov
Europol	Complaint against international fraud	europol.europa.eu
ScamDoc	Evaluating the reliability of a website	scamdoc.com
CryptoScamDB	Crypto Scam Database	cryptoscamdb.org

These organizations and tools help alert authorities , prevent the spread of scams and sometimes even help recover stolen funds .

Research tools to avoid scams

Before investing in a crypto project, it is essential to conduct a thorough analysis . These tools allow you to check if a project is suspicious:

Analysis of smart contracts :

• Token Sniffer : Detects rug pulls and evaluates smart contracts.
• RugDoc : Analyzes DeFi protocols and warns of risks.
• BSC Check : Verifies contracts on Binance Smart Chain .

Crypto Project Tracking :

• CoinMarketCap : Checks the capitalization and credibility of cryptocurrencies.
• CoinGecko : Compare prices and trading volumes.
• DappRadar : Lists reliable decentralized applications .

Identifying scams :

• Web3 is Going Great : Lists the biggest crypto scams and hacks .
• Crypto ScamDB : Lists fraudulent projects reported by the community.
• Etherscan Token Tracker : Verifies the existence and legitimacy of an ERC-20 token .

These tools help you avoid traps and identify the warning signs of a scam.

Communities and forums for information

Staying informed and connecting with other investors is a great way to avoid pitfalls . Here are some active communities where you can discuss crypto risks and scams :

Forums and social networks :

• BitcoinTalk : One of the largest crypto forums.
• r / CryptoScams ( Reddit ) : Dedicated to scams and alerts.
• r / Cryptocurrency ( Reddit ) : General discussions about cryptocurrencies.
• [ Telegram & Discord ]: Beware of fake groups! Always check official links.

Serious YouTube Channels and Analysts :

• Andreas Antonopoulos : Bitcoin and blockchain expert.
• Coin Bureau : Detailed analyses of crypto projects.
• Hasheur : Popularization and crypto security in French.

These platforms allow you to interact with experts , identify ongoing fraud and better understand the crypto ecosystem .

Conclusion

Cryptocurrency scams are becoming increasingly sophisticated and target both novice and experienced investors . With best practices , the use of appropriate tools , and vigilance , it is possible to avoid pitfalls and secure your investments .

Summary of essential tips :
– Always check for a real blockchain .
– Be wary of promises of guaranteed returns .
– Avoid anonymous or overly marketing projects .
– Use analysis tools like TokenSniffer and RugDoc .
– Report scams to protect the community.

FAQ about cryptocurrency scams

What is a cryptocurrency scam ?

A crypto scam is a scam that aims to steal funds or personal data using fraudulent schemes. This can include fake ICOs , rug pulls, phishing , or even deceptive promotions spread by fake influencers.

How to recognize a crypto scam?

Signs of a scam include:

• Promises of guaranteed profits without risk.
• Lack of transparency about the team and the project.
• Aggressive marketing based on FOMO.
• Difficulty withdrawing funds .
• Requests for private keys or sensitive information .

What are the most common crypto scams ?

The most common scams in the crypto universe are:

• Rug pulls : Projects that disappear after raising funds.
• Ponzi schemes and fraudulent MLMs.
• Phishing via fake platforms and wallets .
• Fake airdrops asking for activation fees.
• Identity theft on Telegram and Twitter.

What should I do if I've been a victim of a crypto scam ?

If you are a victim of a scam, here are the steps to follow:

1. Immediately stop all transactions with the scammer .
2. Report the scam on specialized platforms.
3. Contact your exchange to see if they can freeze the funds.
4. Warn the community to prevent further casualties.
5. Strengthen your security by enabling 2FA authentication and changing your passwords.

How to avoid falling for a crypto scam?

To avoid scams , it is advisable to:
– Check the legitimacy of the project before investing.
– Never share your private keys or passwords.
– Use secure wallets and tools like TokenSniffer .
– Be wary of offers that seem too good to be true .
– Follow crypto news to be informed of current scams.

Can you get your money back after a crypto scam ?

In most cases, crypto transactions are irreversible . However, some exchanges may block funds if the scam is detected early. Specialized companies also offer blockchain transaction tracking services to try to recover stolen funds.

How to report a crypto scam ?

You can report a scam on :

• Crypto ScamDB (database of known scams ).
• AMF, SEC, Europol depending on your country of residence.
• Crypto forums and communities to alert other investors.

Are cryptocurrencies safe despite scams?

Cryptocurrencies themselves aren't fraudulent, but their decentralized and anonymous nature attracts scammers. With the right security practices , it's possible to invest with peace of mind and avoid pitfalls.