Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Squid Game Coin & Other Crypto Scams That Left Millions of Investors Stone Broke

Squid Game Coin & Other Crypto Scams That Left Millions of Investors Stone Broke

Cryptocurrency is usually a volatile investment environment with no guarantees but the promise of impressive returns has seen scores of people trusting flimsy schemes that can disappear in the blink of an eye.

Crypto experts tend to warn the newbies in the game against trusting anyone on social media positioning themselves as a crypto trader. Anyone who asks for payment in cryptocurrency online or via ATM is also a red flag.

Investors are encouraged to be aware of anyone trying to pressure them to invest immediately on the website of the product or app to double their money in a matter of days or weeks.

The cryptomarket follows the newest global developments and trends, with a prime example being the creation of the Squid Game crypto token, launched after the success of the Korean TV series, Squid Game.


Those behind complex and convoluted Ponzi schemes can be persuasive, making investors part with thousands of dollars in no time.

The Squid Game coin turned out to be a scam, collapsing shortly after its launch and leaving many out of pocket.

Some of the loudest scam cases have robbed investors all over the world of millions.

Bitconnect


One of the biggest scams to date has been the open-source cryptocurrency BitConnect, launched in February 2016 by Satish Kumbhani. BitConnect presented itself as a cryptocurrency lending platform, where Bitcoin could be exchanged for the BitConnect coin. What was initially positioned as an open-source cryptocurrency with a guaranty of 40 percent return for investors, turned out to be a Ponzi scheme.

BitConnect cost its investors around $3.45 billion after it shut down in 2017, following warnings and cease and desist orders by UK and US regulators.

OneCoin


Another Ponzi scheme – whose founders and leadership are now serving or facing a total maximum sentence of 90 years in prison – is OneCoin. The scheme, which has been reported to rob investors all over the world of £4 billion ($4.9 billion), was founded by a Bulgarian businesswoman Ruja Ignatova, who disappeared in 2017 and hasn’t been seen since. OneCoin was actually not a decentralised cryptocurrency but rather a centralised currency hosted on OneCoin Ltd's servers.

Owners of OneCoin could exchange it for any other currency at OneCoin Exchange, xcoinx, an internal marketplace for members who had invested more than just a starter package.

Ignatova’s brother, Konstantin, was arrested at Los Angeles International Airport in March 2019. One of OneCoin co-founders, Sebastian Greenwood, was extradited to the US in November 2018.

Despite the shutdown and the charges against its founders, the Bulgarian-based organisation behind OneCoin Ltd continues to operate and denies all wrongdoing.

Pincoin


An ICO launched by a Vietnamese cryptocurrency company Modern Tech, Pincoin has raised more than $600 million from approximately 32,000 people.

Investors in Pincoin were promised constant returns and rather than being paid back in cash, they would receive a new token called iFan.

The Pincoin team were paying out rewards to investors in iFan tokens, until they disappeared in April 2018. The same year, Vietnamese authorities asked local ministries and the police to investigate Pincoin.

ACChain


In 2018, another company raised millions of dollars through its investors' three ventures, which were never realised. Investors of the Chinese company Shenzhen Puyin Blockchain lost $60 million as the company’s ICO’s – ACChain, Puyin, and BioLifeChain – failed to materialise.

Shenzhen authorities have since arrested six suspects involved in the fraud.

Bitclub Network

Good salesmanship and marketing won another Ponzi scheme – BitClub Network – more than $700 million.

The US Department of Justice has filed a case against people behind the “fraudulent scheme that solicited money from investors in exchange for shares of purported cryptocurrency mining pools and rewarded investors for recruiting new investors into the scheme.”

Matthew Brent Goettsche, Jobadiah Sinclair Weeks, and Silviu Catalin Balaci were conspiring, according to the US government, to solicit investment in BitClub Network through fraudulent means, including by providing false and misleading figures that BitClub investors were told were “bitcoin mining earnings” purportedly generated by BitClub Network’s bitcoin mining pool.

Monday saw the worth of the world cryptocurrency market reach more than $3 trillion for the first time, with Bitcoin hitting above $66,000 and Ethereum – $4,768.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
G7 Leaders Fail to Reach Consensus on Key Global Issues
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
×