CRYPTO SCAM: LUNA and UST Crash (2022)
The Terra (LUNA) and its algorithmic stablecoin, TerraUSD (UST), became the center of a massive crypto collapse in 2022. LUNA’s creator, Do Kwon, promised a stable and decentralized currency, but the system’s design flaws led to a catastrophic failure. When UST lost its peg to the U.S. dollar, a death spiral ensued, crashing both UST and LUNA’s value. Investors lost approximately $40 billion collectively. The crash shook the entire crypto market and led to increased scrutiny of stablecoins and algorithmic mechanisms.

CRYPTO SCAM: BitConnect Ponzi Scheme (2018)
BitConnect was one of the earliest and most infamous crypto Ponzi schemes. The platform promised investors guaranteed returns of up to 40% per month through a lending program allegedly powered by a proprietary trading bot. In reality, the platform had no such technology and was operating as a classic Ponzi scheme, paying older investors with new deposits. The scam unraveled in early 2018, wiping out billions of dollars and leading to lawsuits and arrests. BitConnect’s collapse remains a cautionary tale about high-yield promises in the crypto space.

CRPTO SCAM: OneCoin Scam (2014–2017)
The OneCoin scam, orchestrated by Ruja Ignatova, is one of the largest crypto frauds in history, amassing over $4 billion from investors worldwide. Marketed as the next big cryptocurrency, OneCoin promised huge returns, but it had no actual blockchain or cryptocurrency backing it. It was a sophisticated multi-level marketing scheme that relied on new investors to keep it afloat. Ruja Ignatova, known as the “Cryptoqueen,” disappeared in 2017 and remains at large, while many involved in the scheme have faced criminal charges.

CRYPTO SCAM: Mt. Gox Hack (2014)
Mt. Gox was one of the earliest and largest Bitcoin exchanges, handling around 70% of all Bitcoin transactions at its peak. In 2014, the platform suffered a devastating hack, losing 850,000 BTC, worth over $450 million at the time. The hack exposed significant security flaws and poor management practices, leading to the exchange’s bankruptcy. It marked a turning point in crypto history, highlighting the importance of exchange security and the risks of centralized platforms.

Sam Bankman-Fried, once a crypto star, faced downfall as FTX collapsed amid fraud allegations.
He was found guilty of mishandling billions in customer funds on November 2, 2023.
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