Top crypto scams in 2019 - Part 2

Top crypto scams in 2019 - Part 2

By DimitarM | Welcome to my life | 2 Jan 2020

So guys, yesterday I have put an article about the top 3 crypto scams. There was a request for putting another article for the rest of top scams of the year and here it is. There will be no particular order - the amounts of lost assets are lower here, but still it is significant amount of money.

Here we go:


BITPoint, an exchange from Japan, lost about $32 millions to hackers in July. Bitcoin, XRP, ETH, LTC were stolen which caused the exchange to freeze all deposits and withdrawals. In the fallout of the event there are reports that the exchange will be refunding 100% of the stollen funds to about 50 000 affected customers.


Binance lost about $40 million(7000 BTC) in Bitcoin to hackers in may 2019. In addition to that the hackers got away with stolen 2FA and API codes. However, the impact for the exchange was not too great, since that amount was less than 2% of the total amount of holdings.


The South Korean Upbit exchange lost 342 000 ETH to hackers(worth about $48.5 million at the time). The assets were stolen from the hot wallet of the company. The exchange took action and no customers will be impacted as the lost funds will be covered by Upbit's assets.


The Fuel token, a Canada ICO pulled a scam and stole about $30 million. A Canadian couple, K.P. Hobbs and L.A. Cheng, are facing charges by B.C. Common Forfeiture Office in Canada about the ICO fraud. They managed to convince their investors that Fuel token will be used for "future items" and develop in utility and price.


A fake Crypto Exchange created in UK stole about $27 millions in crypto assets. After 14 month long investigation Europol announced the arrest of 6 individuals in England and Netherlands simultaneously in their homes. The exchange was used to gain access to the victims crypto wallets. About 4000 people were affected by this.  The important part about the method used is explained by the Eurol release:

"The investigation relates to "typosquatting", where a well-known online cryptocurrency exchange was ‘spoofed’ – or recreated to imitate the genuine site - to gain access to victims’ Bitcoin wallets, stealing their funds and login details."


Another "Exit Scam" happened in South Korea losing about $18 millions in crypto assets from a Ponzi scheme. The affected customers were promised 600% return from the unlisted M-token. More than 56 000 people were affected, most of them in the elderly age of over 70 years old. They were tempted by the promised high profit. 


Hackers stole about $10 millions in XRP from the Ledger wallets at GateHub in June 2019. There is no clarity yet how this exactly happened. But the company so far managed to recover about $200 thousands to the affected 100 Ledger wallets.


Singapore Bitrue crypto exchange lost about $4 millions in XRP and ADA in June 2019. The hackers managed exploit a vulnerability in security system of the exchange according the the Bitrue Twitter message.


A suspected hack of high amount of Bitcoin holder's account on the Kraken Exchange caused the price of BTC on the Exchange to drop nearly $1000 from 8400 to 7500 in matter of a hour in December 2019. The account in question had about 1200 BTC which were stolen and their price at the time was nearly $10 millions.

I want to remind everyone to do your own research always before investing and do not make the life of scammers easier by handing them over your funds by doing something stupid, like investing in the wrong platform, keeping assets in an Exchange wallet and so on.

Hope you, guys, find this useful.


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