These are the top 5 biggest Bitcoin scams ever.
Here are the top 5 bitcoin scams pulled by hackers to steal bitcoin and other cryptocurrencies from people.
1.The Big Twitter Hack
At the time of writing this, the Twitterverse is still reeling from one of the biggest cryptocurrency hacks of all time. The accounts of many major personalities – Barack Obama, Bill Gates, Joe Biden, Jeff Bezos and many others – were recently hacked by an unknown group, and their feeds replaced by tweets asking for Bitcoin donations. Unfortunately, quite a few people fell for it, too.
While we aren’t sure about the exact numbers yet, the scammers are said to have gotten hundreds of thousands of dollars in this scam alone, as apparently quite a few people trust these personalities enough to send them money whenever they ask. While the accounts have been restored to their rightful owners, it’s not yet clear how the hack happened.
2. The YouTube Scammers
Even if cryptocurrency scams have existed for as long as the currencies themselves, they have to keep updating their M.O. to be on top of the scamming market. What would have worked in 2013 is common knowledge at this point, as the recent crypto boom has gotten cryptocurrencies into the mainstream discourse.
That doesn’t mean that scammers are running out of ways to scam people – they’re just coming up with new ways to do it. Take one of these very specific types of scams you’d find mostly on YouTube, wherein a major channel is hacked and their regular stream is replaced by a live stream of someone famous in the crypto field (they even used Elon Musk) asking for a generous donation through Bitcoin. Quite a few big channels – including TopTenz – have fallen prey to this tactic, as it directly targets a wide group of unsuspecting subscribers.
As you’ll know by now, Bitcoin isn’t the only cryptocurrency around. Many other coins have tried to replicate its success story, and some have succeeded quite well, as they come with their own technology to solve various problems. Still, most coins in the market have little to no use, and exist only as for-profit business models. That would be fine, too, except many of them are huge scams, with little or no intention of doing what they say with your money.
Just take OneCoin, which started out as a cryptocurrency and had hundreds – if not thousands – of people promote it across YouTube and other social media channels before its launch. They asked people to invest in their educational material, merchandise and other things in exchange for coins, and even had an incentive model for referrals.
As you’ll have guessed by now, yup: it was a multi-level, international Ponzi scheme. Quite a few people ended up buying it, too, as it looked pretty legit. As it turns out, it wasn’t. By the end, the scammers got away with over $4 billion, which is easily comparable to a major stock exchange fraud.
You’d think that cryptocurrency scammers have to get creative once in awhile to turn any profit, and they do, as the layman knows more about these coins now than he did around a decade ago. Still, that doesn’t mean that the old ways don’t work at all. It’s still ridiculously easy to use the same script and get at least some people to give you their precious coins. Some new coin claims to solve some arbitrary problem, thousands of people put in their money and buy it thinking someone else will buy it for a higher price later, and the company goes missing with all the money.
That was the case with Bitconnect, though it ended up getting more successful than most other scams of that nature. While their offer was simple – put in a sum of money in exchange for a fixed amount of regular returns – it ended up getting more takers than usual, something no one can still adequately explain. Many claim that it was due to their quirky marketing, though it may just have been the fear of losing out on a great investment at the height of the crypto bubble. At its peak, Bitconnect was among the top 20 cryptocurrencies, with a market cap of around $2.6 billion. What will come as a surprise to absolutely no one is that Bitconnect turned out to be a Ponzi scheme, too, and almost all of its top brass is still M.I.A. after they abruptly shut operations and exited the market in 2015
5. Mt Gox
If you haven’t heard of Mt. Gox, you may be new to the cryptocurrency space. It was a cryptocurrency exchange based in Japan which – at its height around 2013 – was responsible for around 70% of all the Bitcoin transactions in the world. It would have continued to be the biggest player in the market today, too, if not for its infamous hack back in 2014.
All in all, around 800,000 Bitcoin were stolen from the Mt. Gox Bitcoin wallet, though the details of exactly what happened are still fuzzy. It was the biggest setback to Bitcoin since its inception, as 600,000 of those Bitcoin – worth around $5.5 billion today and a huge chunk of the total supply – still remain lost. While Mt. Gox declared bankruptcy soon after the fiasco, the hunt for the missing Bitcoin is still on.
After reading this I hope you’ll be able to protect yourself from these fake online websites and impersonations.
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