6 Insane Crypto Scams and Controversies

February 24, 2022

6 Interesting Scams, Rug Pulls, and Frauds that You Should Know

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$14 billion in cryptocurrency was scammed in 2021.

That’s an increase of 80% than last year.

Web3 created bountiful opportunities for entrepreneurs and cryptocurrency users.

But it also left ajar crypto’s pandora box.

Here are 6 interesting scams to date.

@beaniemaxi

  • Beanie, aka Charles Moscoe, was called out for taking part in various frauds and scams. He was an NFT influencer, advisor, and investor for projects like Pixel Vault and Wolf Game.
  • It was said that he siphoned $40 million (12,500 Ether) and made $16 million unrealized gains, but Beanie denied all charges.

Time Wonderland

  • Wonderland (@Wonderland_fi)is a decentralized reserve currency protocol, offering 80,000%+ APY. They hired Sifu (@0xSifu),an ex-felon who oversaw their treasury — but his identity was never disclosed to the community.
  • Sifu sent $8.4 million to his own wallet to use as collateral to prevent liquidation. A move that fell through since TIME tokens plummeted from its peak of $10,000 to $335, after several mass liquidations.

Sushiswap

  • Sushiswap (@SushiSwap)is a DEX based on the Ethereum network. In September of 2020, founder Chef Nomi (@NomiChef) sold $13 million of tokens. Droppingthe value of SUSHI tokens from approximately $4.44 to $1.30.
  • After huge backlash, Chef Nomi returned $14 million in ETH, apologizing to the community.

Squid Game Token

  • Squid Coin (@SquidGameToken) was launched on November 1, 2021, inspired by a famous Korean series, Squid Game (to be clear, the coins had no affiliation with the series).
  • The price hiked up to $2,861per coin, and once the currency skyrocketed, developers cashed out $3.3 million, dropping the currency value to $0. A classic ‘rug pull.’

MonoX Finance

  • MonoX (@MonoXFinance)is a new DeFi protocol launched in October 2021.
  • $31 million in cryptocurrency was lost because of a smart contract bug. Hackers inflated the price of $MONO tokens and used it to cash out all other deposited tokens.

Blockverse

  • To all Minecraft lovers, this scam hit hard. Blockverse (@Blockverse_NFT) was considered “an on-chain Ethereum NFT that enables a unique P2E (play-to-earn) on Minecraft…”
  • After earning $1.2 million in tokens, the creators deleted their website, game server, and official Discord. While they still claim that they’re not an exit scam, users believe otherwise.

Companies to Watch:

Sources

https://www.cnbc.com/2022/01/06/crypto-scammers-took-a-record-14-billion-in-2021-chainalysis.html

https://www.cnbctv18.com/cryptocurrency/squid-game-scam-everything-you-should-know-11380272.htm

https://www.wired.com/story/squid-game-coin-crypto-scam/

https://www.washingtonpost.com/world/2021/11/02/squid-game-crypto-rug-pull/

https://thelogicalindian.com/technology/squid-coin-32078#:~:text=Squid's%20developers%20have%20made%20off,being%20filled%20with%20spelling%20errors

https://hypebeast.com/2022/1/minecraft-nft-project-blockverse-scam-after-disappearing-with-one-million-usd

https://www.businessinsider.com/crypto-scams

https://www.outlookindia.com/website/story/business-news-yearender-2021-more-than-80-rise-in-crypto-scams-in-2021-says-report/407181

https://www.nbcnews.com/tech/security/crypto-scammers-took-record-14-billion-2021-rcna11192

https://bit.ly/3HBXtpr

https://news.bitcoin.com/sushiswap-returns-14-million-exit-scam/

https://www.coindesk.com/tech/2020/09/11/i-fked-up-sushiswap-creator-chef-nomi-returns-14m-dev-fund/

https://fullycrypto.com/sushiswap-taken-over-as-creator-walks-with-13-million

https://www.highsnobiety.com/p/beaniemaxi-nft-crypto-allegations-exposed/

https://indianexpress.com/article/technology/crypto/from-poly-network-to-squid-token-scam-a-look-at-all-cryptocurrency-heists-of-2021-7683924/

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