Ponzi scheme

Several cryptocurrency scams have been exposed since the beginning of 2021 and the legal actions have been taken by authorities. A lot of cryptocurrency scams normally appear as online chain referral schemes, high-return investments, or Ponzi-schemes.

The CEO of Ryanair, an Irish budget airline, Michael Kevin O’Leary (59-years of age), was involved in promoting another cryptocurrency scam without even knowing it. That made him turn extremely bearish and compare Bitcoin (BTC) itself to a scam.

During the first 5 months of this year, the amount of damage caused by crimes related to digital currency amounted to about $1.4 billion, according to CipherTrace research.

A new crypto scam originating in China and involving the loss of at least $1.1 billion worth of cryptocurrencies from more than 700,000 users is thought to be related to the previous Plus Token Ponzi scheme that also exited with some $2.9 billion.

A British digital payment platform halted operations after the Financial Conduct Authority (FCA) suspended its license, which cost its clients over $128 million.

More digital currency snags as two notorious Arizona Men that operated a $1,000,000 USD cryptocurrency Ponzi business are under arrest for promoting illegal activities.  Tokens are gradually becoming a common practice in the sports sector globally, and since we have had bad players in this nascent field, this scam doesn’t come as a surprise to many.

American attorney Mark Scott, who used to work for one of the biggest digital currency Ponzi schemes, OneCoin, is now trying to get an exoneration just three months after his conviction by a U.S court of illicit operations, money laundering and scams.

Another Ponzi scheme, dubbed Bitcoin Wallet, left investors with nothing, according to the Ladysmith Gazette. The investment scheme was one of the most lucrative projects in South Africa that saw many potential people, investors and companies willingly put their money in it, with the hope of acquiring abnormal returns in the shortest time possible.

The long-awaited arrest of Konstantin Ignatov, one of the founders of OneCoin, by the American authorities is being discussed in Ticino, Italian-speaking canton of Switzerland. In the past few months, some investors in Ticino bought this Bulgarian crypto founded in 2014.