Top 10s in Crypto Market

Stories of Top 10 Scam ICOs You Should Know About

2017 remains the best year for cryptocurrency space so far. With the universal boost in the prices of cryptocurrencies, a conducive atmosphere was created for ICO too.

People especially those who missed the bitcoin train were so eager to get into cryptocurrency. The best way available was through investing in a promising ICO. Many startups firms presented their ideas seeking funding. A lot of these were legitimate business ideas. Nevertheless, a few hundred turned out to be scammed!

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Stories of 10 ICOs Scam You Should Know About

Here is a list of the top ten ICO scam in the history of cryptocurrency.

1. Pincoin and iFan $660 million

These two coins emerged top of this list after the fraudsters made off with a mind-blowing $600 million of investors’ money. However, the coins are registered under a company called modern Tech headquartered in Vietnam. The operation of Pincoin and Ifan was conducted concurrently in Dubai and Singapore.

The criminals behind these fake projects managed to cone 32,000 investors stealing $660 million after refusing to make agreed on regular payments. The company managed to pull this heist with a combination of extensive social media advertisements and backing of some local government officials.

ICOs Scam

2. Plexcoin $15 million

Next in the line is a Canadian based scammer who managed to steal at least $15 million conducted in a cross-border scam campaign between the US and Canada. Mr. Dominic Lecriox the architect of the scam and founder of Plexcoin promised investors plexcoin would be a faster version of bitcoin. Dominic has served his sentences of a two-month jail term and $100,000 fine in Canada. However, the United States SEC is still battling him up in the courts.

3. Bitcard $5 Million

Bitcard launched in 2014 with promises to disrupt businesses, government, trading and transaction software systems. The startup attracted thousands of investors who got lured into their promises of a world-class platform. The platform never presented any whitepaper and had a lot of discrepancies on its website. When users started to lodge complaints the team disappeared with the $5 million they managed to grab during ICO.

4. Opair and Ebitz $2.9 Million

One wise scammer organized these two ICOs and managed to defraud investors of more than $2.9 million. The perpetrator only known as Wasserman developed a unique scheme that scammed investors not once but twice.
Opair was advertised as a decentralized debit card system that ran on its own token while Ebitz rerouted its domain through opair.

Opair was shut down after some curious investors realized the team’s LinkedIn profiles were fake. The sister site Ebitz claiming to be an improved version of Zcahs continued the scam before finally disappearing with a cool $2.9 million in investment funds.

Top 10 ICOs Scam

5. Benebit $2.7 million

Moreover, this project promised investors to develop a way to get more points, similar to credit card rewards with tokens. It became clear from the start that this project was a scam after the team’s profiles on were found to be fake.

6. Bitconnect $700,000

Bitconnect battled accusation of being a Ponzi scheme before finally turning out into one. The platform developed a system that allowed users to lend on earn interest on the Bitconnect tokens. Users got suspicious of the platform’s Ponzi like referral system. Moreover, SEC moved in and gave a cease and desist order against the company. Users who lost their money on the scheme dragged Bitconnect to court to face a class-action lawsuit.

7. REcoin and DRC $300,000

Both coins had the same creator promising that Real Estate coin and Diamond Reserve Club (DRC) would be backed by real-world assets. However, REcoin was to be backed by Real estate while DRC is backed by Diamonds. Due to his wordy promises founder Maksim Zaslavskiy was netted by SEC and awaits prosecution in a court of law.

cryptocurrency frauds

8. Confido $375,000

The founder of Confido, a would be smart contract based platform claimed he was in some legal troubles and couldn’t continue with the project. However, he further argued that there were threats to his life.

9. PonziCoin $250,000

Investors can sometimes be funny especially after a fraudster announcing his motive in the name of his company. PonziCoin was advertised as the world’s first legitimate Ponzi scheme before managing to raise a quarter a million in ICO. The coin became a real Ponzi scheme after the Its website announced that the show is over.

10. Karbon $200,000

Karbon was being developed into a decentralized marketplace. The team promised to deliver an Amazon related platform where people can buy and sell stuff on a blockchain. However, the platform later became a scam when its team varnished from the usual forums where they always communicated with investors.

Meanwhile, you may like to read:

  1. What is an ICO?
  2. Will Blockchain Technology Eliminate Identity Fraud in Future?
  3. Adoption of Blockchain Technology in Various Sectors
  4. Why Are ICO Trends Braking With Unbiased Market?

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Jacob Okonya

Jacob has been engaged in blockchain technologies, Bitcoin, and fintech. He worked mostly as a blockchain market researcher, fintech journalist, and online forum moderator. Jacob is involved in creating articles and educational content for different project components, explaining how users can utilize the various resources.

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