Crypto companies already reported for fraud These are not community allegations. Every case below has been the subject of criminal charges, a conviction, a regulator's enforcement action, or a court-supervised collapse. Use the patterns here to recognise the next one before you send money.
Terraform Labs (LUNA / UST) Convicted 2018–2022 · South Korea / Singapore · Misrepresented 'algorithmic stablecoin' and yield protocol
Money involved
$40,000,000,000
People affected
Global retail and institutional holders
The facts The UST stablecoin lost its dollar peg in May 2022, wiping out roughly $40 billion of market value in days. A U.S. jury found Terraform Labs and founder Do Kwon liable for civil fraud in April 2024. Terraform agreed to a settlement of about $4.5 billion with the SEC in June 2024 and wound down. Do Kwon pleaded guilty to U.S. fraud charges in August 2025 after extradition from Montenegro. Warning signs it showed ~20% 'risk-free' yield subsidised by the issuer Peg backed by a sister token rather than cash reserves Public claims of stability contradicted by internal knowledge of prior de-pegs
FTX / Alameda Research Convicted 2019–2022 · Bahamas / USA · Customer-fund misappropriation at a crypto exchange
Money involved
$8,000,000,000
People affected
~1 million creditors
The facts FTX collapsed in November 2022 after a liquidity run exposed a roughly $8 billion hole in customer accounts. Founder Sam Bankman-Fried was convicted on seven counts of fraud and conspiracy in November 2023 and sentenced to 25 years in prison in March 2024. Customer deposits were routed to sister trading firm Alameda Research and spent on venture bets, real estate and political donations. Several senior executives, including Caroline Ellison and Gary Wang, pleaded guilty and cooperated with prosecutors. Warning signs it showed Customer assets commingled with an affiliated trading desk No independent board, auditor or proof of reserves Celebrity and stadium marketing far ahead of disclosure quality
Celsius Network Convicted 2018–2022 · USA · Crypto lender misrepresenting risk and propping up its own token
Money involved
$4,700,000,000
People affected
~600,000 account holders
The facts Celsius froze withdrawals in June 2022 and filed for Chapter 11 bankruptcy the following month. The FTC announced a settlement with a $4.7 billion judgment over deceptive claims about safety of deposits. Founder Alex Mashinsky pleaded guilty to fraud charges in December 2024 and was sentenced to 12 years in May 2025. Court filings showed the company manipulated the price of its own CEL token while insiders sold. Warning signs it showed Double-digit yields marketed as 'safer than a bank' Balance sheet dependent on the company's own token Withdrawals paused before any public disclosure of insolvency
OneCoin Convicted 2014–2017 · Bulgaria / global · Multi-level-marketing Ponzi with a fake blockchain
Money involved
$4,000,000,000
People affected
3+ million investors worldwide
The facts Prosecutors describe OneCoin as one of the largest fraud schemes ever, taking in more than $4 billion globally. The 'coin' had no real blockchain — balances were numbers in a private database controlled by the company. Co-founder Ruja Ignatova disappeared in 2017 and was added to the FBI Ten Most Wanted list in 2022. Co-founder Karl Sebastian Greenwood was sentenced to 20 years in prison in 2023. Warning signs it showed Recruitment commissions instead of a real product No public, verifiable blockchain Guaranteed returns pitched at seminars and via WhatsApp groups
Africrypt Charged 2019–2021 · South Africa · Alleged Bitcoin investment fund exit scam
Money involved
$3,600,000,000
People affected
South African retail investors
The facts The Cajee brothers told investors in April 2021 that the platform had been hacked and asked them not to contact police. Investigators estimate up to 69,000 BTC — valued around $3.6 billion at the time — went missing. South African authorities pursued liquidation and criminal proceedings; the founders left the country. Warning signs it showed Promised returns of up to 10% per month Investors discouraged from involving law enforcement Funds pooled into wallets controlled solely by the founders
BitConnect Convicted 2016–2018 · India / USA · Ponzi scheme with a fictitious 'trading bot'
Money involved
$2,400,000,000
People affected
Investors in 40+ countries
The facts BitConnect promised up to 1% daily returns from a secret volatility trading bot that never existed. The SEC charged the promoters in 2021 with defrauding investors of roughly $2 billion. Founder Satish Kumbhani was indicted in 2022; promoter Glenn Arcaro pleaded guilty and was sentenced in 2022. The token lost more than 90% of its value within days of the platform shutting down in January 2018. Warning signs it showed Fixed daily percentage returns Referral tiers paying existing investors from new deposits Proprietary 'bot' that could never be audited
Thodex Convicted 2017–2021 · Turkey · Exchange exit scam
Money involved
$2,000,000,000
People affected
~400,000 Turkish users
The facts Thodex abruptly halted trading in April 2021 and its founder fled to Albania with customer funds. Founder Faruk Fatih Özer was extradited, convicted in 2023 and sentenced to more than 11,000 years in prison. The exchange had run a 'free Dogecoin' giveaway campaign shortly before collapsing. Warning signs it showed Aggressive giveaway campaigns to pull in new deposits No segregation or audit of customer wallets Support channels going silent before shutdown
HyperFund / HyperVerse Charged 2020–2022 · USA / global · Crypto MLM Ponzi with rebranding chain
Money involved
$1,890,000,000
People affected
Global MLM recruits
The facts U.S. prosecutors charged founders in 2024 over a scheme that took in about $1.89 billion. Members were sold 'membership rewards' promising 0.5–1% daily returns until payouts stopped in 2022. The operation repeatedly rebranded — HyperFund, HyperVerse, HyperNation — to keep recruitment alive. A promoted 'CEO' presented to investors was found to be a fabricated persona. Warning signs it showed Serial rebranding after payout failures Executives who cannot be verified as real people Income tied to recruiting rather than a product
iFan / Pincoin (Modern Tech) Charged 2017–2018 · Vietnam · Dual-ICO Ponzi
Money involved
$660,000,000
People affected
~32,000 Vietnamese investors
The facts Modern Tech JSC raised roughly $660 million across the iFan and Pincoin token sales before vanishing. Payouts were switched from cash to worthless iFan tokens shortly before the operators disappeared. Vietnamese authorities opened investigations after mass protests by investors in Ho Chi Minh City in 2018. Warning signs it showed Returns paid in the project's own illiquid token 48% monthly return promises Office address that turned out to be vacated
SafeMoon Convicted 2021–2023 · USA · Misrepresented locked liquidity and insider withdrawals
Money involved
$200,000,000
People affected
Retail token holders
The facts The SEC and DOJ charged SafeMoon executives in November 2023 with fraud and diverting investor funds. The company told holders liquidity was permanently locked while executives withdrew from those pools. CEO Braden Karony was convicted by a federal jury in May 2025; the CTO pleaded guilty. Warning signs it showed 'Liquidity locked' claims with no on-chain proof Insider wallets moving pool funds Hype-driven token with no operating business
QuadrigaCX Regulatory action 2013–2019 · Canada · Exchange operated as a Ponzi by a single founder
Money involved
$169,000,000
People affected
~76,000 users
The facts Quadriga collapsed in 2019 after founder Gerald Cotten died, reportedly taking sole wallet keys with him. The Ontario Securities Commission concluded in 2020 that the exchange was effectively a Ponzi scheme. Cotten had traded against clients on fake accounts and covered withdrawals with other users' deposits. Warning signs it showed One person controlling all keys and books No external audit or corporate governance Withdrawal delays blamed on banking partners
Mining Capital Coin Convicted 2018–2021 · Brazil / USA · Fake crypto-mining 'trading packages'
Money involved
$100,000,000
People affected
Investors in 130+ countries
The facts MCC sold mining packages promising daily returns from mining operations that prosecutors say did not exist. Founder Luiz Capuci Jr. was indicted in 2022 and pleaded guilty; the CFTC obtained a fraud judgment. Investor deposits were diverted to wallets controlled by the founder rather than mining hardware. Warning signs it showed Daily fixed payouts from 'mining' No verifiable hash rate or facility Withdrawal blocks once payouts slowed Summaries are drawn from public court filings, regulator announcements and reputable news reporting. Loss figures are estimates published at the time of enforcement and may change as cases progress.