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Beware of The Most Common Cryptocurrency Scams Before Deep Diving into The Crypto Market!

Category: Cryptocurrency
Length: 17 Pages
Reading Time: 35 Min

Excerpt: There are countless types of scams and the rate of scamming has drastically increased over the years mainly due to scammers and fraudsters coming up with new techniques to scam and manipulate people and take advantage of them. So beware of all such scammers and such fraudulent business opportunities.

April 14, 2022

Introduction

For all the people who need to learn about cryptocurrency, and cryptocurrency scams and want to research blacklisted cryptocurrency companies to avoid being scammed, this article is for you. Now let’s start with the basics and talk about what cryptocurrency really is. I’m sure many of you don’t understand how it works and what it truly is. Don’t worry I’m here to guide you through it and make it easy for you to understand cryptocurrency. Cryptocurrency is primarily a digital currency that is designed to operate as a medium of exchange. This type of currency is secured by cryptography and is traded through a computer network. 

It operates through a decentralised platform and a network that mainly operates on blockchain technology. There are tons of advantages to cryptocurrency. Let’s go through a few of them! Cryptocurrency allows you to conduct cheaper and faster money transfers without the need for any middleman or government authority in between. However, it does have a few drawbacks which mainly include price volatility, criminal activities, and increased energy consumption for mining activities. This article talks about the common types of cryptocurrency scams and focuses on the history of cryptocurrency and sheds light on a few blacklisted brokerages.

Scammers took home a record $14 billion in cryptocurrency in 2021, thanks in large part to the rise of decentralized finance (DeFi) platforms.

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If you are someone who’s interested in Cryptocurrency, then you’re definitely at the right place. We can give you the best practices in identifying red flags as well as help you in recovering your stolen money from scammers!

Table of Contents

CHAPTER 1: When Did The First Crypto Scam Exactly Occur & How?

bitcoin chart on phone

I’m sure you’ve heard this word countless times from people. Nowadays everyone is curious and eager about investing in cryptocurrency but what is it? Let me give you an idea of what it is. A cryptocurrency is mainly a form of digital currency since it exists digitally and it makes use of cryptography to secure transactions. There is no regulatory authority for example there is no government intervention neither does any financial institution such as a bank intervene.

The main purpose of cryptocurrency is to allow you to have securely online payments without the need for any third party or any intermediaries. Popular cryptocurrency is bitcoin and Ethereum and cryptocurrency can easily be converted into cash through a broker. I hope you’re clear with what it is now.

Due to the rise in cryptocurrency platforms and the sudden popularity of cryptocurrency, scammers and fraudsters are attracted to cryptocurrency. There are several types of cryptocurrency scams. Let’s go over a few of them. Cryptocurrency-related scams have skyrocketed to losses that are more than 80 million US dollars. In addition to this as of March 2021, almost 7000 people have been victims of cryptocurrency-related scams.

Now let’s talk about cryptocurrency scams and the two main categories of cryptocurrency-related scams. This includes firstly all types of initiatives regarding obtaining access to the digital wallet or obtaining any important credentials. This mainly includes scammers trying to gain access to the wallet and gaining access to all types of private information including security codes, passwords, and other types of financial information which will allow them to easily hack into your wallet.

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The second category is primarily scamming which involves transferring cryptocurrency directly to scammers which can easily be done through impersonating a celebrity or a crypto company, fraudulent investment opportunities, and lastly, imposter websites. There are several types of cryptocurrency scams which include social engineering scams which include romance scams, imposter or giveaway scams, phishing scams, blackmail or extortion scams, investment or business opportunity scams, and lastly cloud mining scams. 

There are countless types of scams and the rate of scamming has drastically increased over the years mainly due to scammers and fraudsters coming up with new techniques to scam and manipulate people and take advantage of them. So beware of all such scammers and such fraudulent business opportunities.

1. Imposter websites

I’m sure by its name you can get an idea of what it means. This scam is very common nowadays since it is the easiest way to scam someone. This method of scamming takes place through an imposter website or a fake website that lures and manipulates people by promising them high rewards. People invest and hence get scammed since the website turns out to be fake and once the transaction is made the scammer disappears.

2. Scamming emails

newsletter

This is also known as phishing and is yet another common scamming technique. Fraudsters make up a fake email that might look like it’s completely legit but it turns out to be fake. These scammers send an email pretending to be a cryptocurrency company and lure people in. Please avoid all such fake emails and don’t get fooled.

3. Fake mobile applications

This is yet another common way through which scammers and fraudsters trick people. They basically ask you to download their mobile applications and thus they scam you. They use these mobile applications to infiltrate the system and hack into your account.

Interested in Investing in CryptoCurrency? Learn About These Common Scams First

stocks on black

Market Manipulation

Market manipulation is primarily an attempt to artificially influence the overall price of the asset or the behaviour of markets. This is a common method of scamming people and is used by tons of brokers.  This mainly involves an individual or a group of brokers that works to create the illusion that they want in the market so that they can easily benefit from the aftermath of this market manipulation. Let me make it simple for you to understand. I’m sure everyone is a huge fan of Leonardo De Caprio, the guy who played Jordan Belfort in the Wolf of Wall Street.

If you’ve watched the iconic movie you’ll easily understand the example I’m going to give you. Remember in the movie Jordan manipulated the market by charging ridiculously high prices for worthless stock and then he made an entire company that sold 2 dollar stocks for millions of dollars.

broker on laptop

That’s what market manipulation is and it’s highly unethical which is why he gets arrested in the end. For all the people who haven’t watched this movie firstly go watch it secondly let me explain Market manipulation to you. It mainly works in a way that brokers portray the price of stock way more than it actually is and manipulates the market into thinking this is true. These brokers con the traders into investing tons of money into worthless cash by simply manipulating the market. I hope you’re all clear now.

This is highly common in trading platforms as they are unregulated and there is no government intervention and no financial institution is responsible for this exchange. This unregulated platform attracts brokers who want to make profits off of manipulating and scamming young and vulnerable traders.

How does it work?

Market manipulation is mainly the process of artificially influencing prices and in the process manipulating people, especially young traders. Young traders are more vulnerable since they have less experience than other experienced traders. Now let’s go through how market manipulation takes place in cryptocurrency. It mainly works with one single trader or a group of traders or a brokerage rapidly buying and selling the same cryptocurrency to inflate the volume artificially. In this way, the asset’s increased buying and selling activity gain attention from the traders and investors which leads to further distortion of the price.

gold silver coins

This is mainly the way brokers or a brokerage artificially influences price and they artificially manipulate the market into thinking that the value of this good is higher than it actually is. This is done by their rapid buying and selling which enables traders to think that the actual value of the asset is higher even though it isn’t. This is mainly how brokers manipulate prices and manipulate the market. You might wonder why market manipulation takes place and why aren’t these brokers detected. 

This is mainly because the cryptocurrency platform is unregulated and it isn’t governed by any central authority which includes either the government or any financial institution. Since the market is unregulated and since there are no regulations on it, brokers use this and manipulate the prices of assets. This is mainly why market manipulation takes place and this is why many traders are victims of market manipulation.

Why is it risky?

Cryptocurrency has rapidly advanced, and in the 21st century, it has gained a lot of popularity, and it has attracted several investors. In addition to attracting investors, cryptocurrency has also attracted several shady brokers, scammers, fraudsters, and other malicious individuals. There are several stories of famous cryptocurrency millionaires which have attracted scammers. According to the FTC, also known as the federal trade commission, there has been a drastic increase in cryptocurrency-related scams from October 2020 to March 31, 2021. There have been reports of increases by 7000 people losing more than 80 million US dollars.

keep out

This shows a 12% increase in the number of crypto-related scam reports and almost a 1000% rise in all the reported losses. These cryptocurrency-related scams are very risky and are detrimental to investors. These scams range from phishing scams, market manipulation, romance scams, imposter and giveaway scams, rug pulls, and pump dump schemes. There are countless types of cryptocurrency-related scams, and the most common type of scam is the high returns with zero risks. These scams are detrimental as investors often get manipulated and fall into this hole of scamming. There have been reports of almost 14 billion losses in cryptocurrency in 2021 owing to decentralized and unregulated platforms. 

Cryptocurrency scamming has been the most extraordinary form of cryptocurrency-based crime in the year 2021, and many investors, mainly new ones, have fallen prey to these scammers. Now let’s talk about the potential risks of these scams. These scammers hack into the investors’ cryptocurrency wallets and steal their currency. This allows them to set up fake wallets, and they can easily step up fake crypto exchanges to steal investors’ money. Investors’ personal information, such as their wallets, passwords, pin codes, and financial information, gets stolen.

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These are confidential, and once they get scammed, all of this information is exposed to these fraudulent brokers. The latter can easily use this information to set up fake crypto profiles, open up credit cards, and scam others. These cryptocurrency scams have several risks, and primarily new investors or traders are at risk. They are considered the most vulnerable out of all investors and suffer the most as well. This is mainly due to their lack of knowledge and experience with the cryptocurrency platform. So beware of these scammers and avoid all such scammers by doing proper research.

Pump & Dump Schemes

Let’s talk about pump and dump schemes and what these schemes truly are. Cryptocurrency pump and dump schemes are primarily when conspirators use misleading information to increase the price of a currency after they sell it at a profit. This is also a type of market manipulation that is used by numerous scammers and fake traders. This is mainly a manipulative scheme that is commonly used by traders to increase the prices of security through fake recommendations which are mainly based on fake, misleading, and exaggerated information. These cryptocurrency pump and dump schemes take advantage of vulnerable traders and generate huge sums of money for the scammers.

pump chart

The main perpetrators of pump and dump schemes have already established positions in the company’s stock and will mainly sell these positions after the hype has led to an increase or a higher share price. These pump and dump schemes mainly target micro and small-cap stocks. These schemes are the main way of manipulating the market and manipulating traders into thinking that the prices of currencies are high. Even though, in reality, this is not possible and the prices of currencies are manipulated using fake information.

These scammers use this method to scam and manipulate traders and thereby benefit. In addition to this, this method is normally used by tons of fake brokerages and scammers to manipulate people and attract them to currencies that in reality are not as valuable as they are portrayed.

How do they work?

Let’s talk about how pump and dump schemes work and how these traders conduct these pump and dump schemes. These pump and dump schemes mainly target micro-cap stocks and then target small-cap stocks on over-the-counter exchanges which are comparatively less regulated than traditional exchanges. These scammers generally prefer micro-cap stocks and small-cap stocks mainly because this type of abusive activity and manipulative activity can be easier to manipulate. These micro-cap stocks generally have smaller floats, lower trading volumes and there is limited corporate information available online.

chart on ipad

Therefore, it doesn’t require a lot for new buyers to easily push the stock higher. This pump and dump scheme can easily be perpetrated by anyone who has an access to the online trading platforms or an online trading account and the ability to convince all other investors to purchase a stock that is ready to take it off.  This market manipulation can take place by pumping the share prices even higher and thereby the perpetrator dumps their shares for an even larger profit. This is mainly how pump and dump schemes take place and this is amongst the most common scamming methods of cryptocurrency. This occurs when the brokers manipulate young traders and thereby dump their shares to gain large profits and the investors suffer large losses. This is mainly how the pump and dump schemes take place.

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Rug Pulls

Rug pulls are yet another common way through which scammers and fraudulent brokers manipulate the market and thereby scam several investors and young traders since they are more vulnerable. Let’s talk about what rug pulls are and how these rug pulls take place. Rug pulls are mainly a type of cryptocurrency scam that occurs when the team pumps their project’s token before vanishing with the funds and leaving their investors with a valueless asset.

These rug pulls mainly take place when fraudulent developers mainly crypto developers create new cryptocurrency tokens and pump up the price then pull as much value out of them as it’s possible before abandoning these as their prices fall down to zero. These rug pulls are mainly a type of exit scam and are decentralized finance exploits also known as Defi. There are three main types of rug pulls which include liquidity stealing, limiting sell orders, and lastly dumping. Let’s talk about each rug pull one by one.

1. Liquidity selling

forex charts on phone

Liquidity stealing mainly occurs when token creators take out all the coins from the liquidity pool. By doing so they’re primarily removing all the value that was injected into the currency mainly by investors and hence this drives the price to zero. These liquidity pulls mainly take place in decentralized finance environments and is the most common exit scam possible.

2. Limiting sell orders

This is a very subtle way for malicious developers to defraud investors. This mainly takes place by the developers coding the tokens so that they’re only available to them. They do this so that they can be the only party that is able to sell these tokens. These developers then wait for retail investors to purchase their new crypto by using paired currencies. You might wonder what paired currencies are, they’re primarily two currencies that have been paired together for trading with one against the other currency. When there is positive price action, these currencies dump their positions and leave worthless tokens.

3. Dumping

sunglass and codes

Let’s talk about the last type of rug pull which is dumping. Dumping is an ethical grey area rather than a decentralized environment ( DeFi) rug pulls. It is not considered to be unethical for cryptocurrency developers to buy and sell their own currencies. Dumping is mainly a question of how quickly and how much of a coin is sold.

How do they work?

Now let’s talk about how these rug pulls work. Firstly let’s talk about hard rug pulls and soft rug pulls. Now malicious code and liquidity stealing is considered to be a hard rug pull whereas soft rug pulls are mainly dumping an asset. A rug pull can either be a hard rug pull or a soft rug pull. Let’s go over both of these types.

1. Hard rug pulls
digital codes

Hard rug pulls mainly occur when the project developers mainly code malicious back doors into their tokens.  These back doors are considered to be hidden exploits that these project developers smartly code into their contracts. Liquidity stealing is definitely considered to be a hard rug pull.

2. Soft rug pulls

Whereas, soft rug pulls mainly include token developers that dump their cryptocurrency assets quickly. By doing so these cryptocurrency is devalued and there are devalued tokens in the hands of the other cryptocurrency investors. This is not necessarily illegal but is definitely considered to be unethical. Therefore, these are the two common types of rug pulls which mainly include hard rug pulls and soft rug pulls. While hard rug pulls are clearly illegal and the motive behind such rug pulls is definitely fraud, soft rug pulls are unethical and are not illegal. I hope you’re clear of the mechanisms of rug pull scams.

Initial Coin Offering Scams

crypto coins

There are dozens of new cryptocurrencies which launch each month and alongside each new token and coins, there are a series of initial coin offerings also known as ICOs. Any initial coin offering depends upon the token or a currency system that facilitates and helps in the crowdfunding process.  There are several ways through which these ICO scams work and operate. Let’s discuss the ways and let’s talk about how these initial coin offering scams work.

How do they work?

Let’s first talk about initial coin offerings. Initial coin offerings or ICOs have opened the general public investments in blockchain ventures. The ICOs have raised more than 1.3 billion for all types of cryptocurrency ventures. Now let’s talk about the red flags and common ways through which you can easily identify and spot ICO scams. If there are no blockchain technologies then it is possibly an ICO scam.

Moreover, if any ICO project proposes an open-source code that is empty or nonexistent then this is a major red flag of an ICO scam.  The lack of detail on how a technology works is a major red flag for a scam and if there is an anonymous team then it’s definitely a scam. So please beware of all such scams and stay away from all such fraudsters. These scams are very common and they have become increasingly popular. So stay away from all such scams and be diligent.

CryptoCurrency X Romance Scams

love on keyboard

This is yet another popular scamming method and is becoming increasingly popular now. It is commonly known as cryptoRom scam which is basically a cryptocurrency-related romance scam. Beware of whom you fall in love with and I’m saying that in the literal sense. These scams have become increasingly common and it usually begins with a social engineering attack in which the fraudster becomes friends with the victim through dating applications such as tinder, bumble, and Facebook dating. This is the most common form of online scamming and cryptocurrency scamming.

This scamming technique is focused on luring the poor victim by developing a romantic relationship with them and luring them into this trap and then afterward getting cryptocurrencies transferred to themselves. Romance scams have increased in 2021 due to the overall pandemic. There was a rapid and unprecedented increase in romance scams which was mainly due to people being lonely during the pandemic and looking for potential partners. This became very popular during the pandemic and many people lost tons of money due to love. These romance scams mainly occurred because people were victims of online dating applications.

forex on sunset

These online dating applications acted as the vessel that lured people in and then scammed them. These online dating platforms have been used for scamming especially in 2021. The immense popularity of these platforms has lured in scammers, especially who now use this platform as a popular way of scamming people. Scammers realized the benefits of these online dating platforms and have now started using these platforms for scamming thousands and millions of dollars of cryptocurrency.

I know you’re probably thinking these scammers are insanely smart and yes they are. They’re smarter than all of us and this is why many people have been scammed on cryptocurrency through these romance scams. So beware and stay away from these romance scams. Don’t be a fool in love unless you’re willing to lose tons of money.

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How do they work?

These scams mainly work through a social engineering attack which starts with online dating platforms such as Tinder, Bumble, and Facebook dating. The scammer then shifts efforts towards encrypted chat applications such as WhatsApp. Following the online relationship, the scammer gains the trust of the victim and then moves to obtain cryptocurrency from very popular crypto exchanges such as Binance and then the scammer asks the victim to download fake cryptocurrency trading applications that look insanely similar to real ones. The scammer also offers to lend money to the victim to gain the trust of the victim. This leads to a relationship in which if the victim wants to stop trading and withdraw their money there are several problems that arise.  The scammer then asks the victim to pay taxes if they withdraw their money. It was researched that a victim transferred almost 1.4 million US dollars worth of bitcoin through a fake trading application.

Imposter & Giveaway Scams

cyber gift

I’m sure you can already tell what these types of scams are. They involve a government official and the individual receives a phone call from the scammer and they claim that you’ve won a prize that requires you to pay a certain amount of either taxes or fees so that they can easily process the prize. The scammer might sound very believable and in certain cases, the scammers threaten you with jail time if you fail to make this payment. This is still a scam that can be easily detected because there is no federal agency that asks you to settle a debt or pay a certain amount. 

Many scammers come up with fake names or they use the names of real government agencies to trick the victim. In such cases, the best thing to do is avoid the call and refrain from complying because there is no federal agency that asks you to pay your debts on call or to collect payments. So in the future keep this in mind. A federal agency cannot ask you to collect prizes and clear payments.

How do they work?

This is very common today as scammers have come up with sophisticated techniques to scam people by posing as government or federal agencies. Now let’s talk about how these government imposter scams work and how scammers pose as federal agencies. Now a government imposter mainly starts with a phone call, an email, or a text message from someone who says that they’re a government agency. They might go as far as to give you their employee ID number to make it sound more official and to make it sound more believable. They might also have your private information such as your name, your address and your email, etc. This is primarily because they’ve hacked into your system and now there are tons of ways to find out the address and location of people online. Yes, technology truly has advanced this much.

question mark

You can enter someone’s phone number and their name and address show up. Now these scammers pose as government agencies and then they often say that they work for the social security administration, the IRS, or Medicare; however, they also come up with fake agency names that are non-existent and are completely nonsensical. I mean it’s very easy for them to create a fake website impersonating a federal agency and they might know your information which makes it sound more believable.

Afterward, these scammers ask you to immediately send them money because they need it for something and they need to make an urgent transfer on your behalf. They might come up with tons of excuses as to why they need this money. Some government imposters might say they’re collecting taxes or something else. Trust me, these scammers have quite the information and can easily come up with something that’ll sound too believable. 

Now let me tell you the giveaway and the way you can easily tell if it’s a scammer. There is no government agency that will call, email, or send text messages to you asking for money deposits, check deposits, or personal information. Trust me don’t fall for this scam and if you get any such call, email, or text message simply avoid it and hang up your phone. These scammers might also ask you to send cryptocurrency passwords etc acting as if the government agency needs to check it. Firstly cryptocurrency is an unregulated platform without interference from the government hence you should immediately hang up and don’t fall for this scam.

They can also advertise high returns or unbelievable profits in cryptocurrency which you won through some fake giveaway. Please stay wary of such scams and avoid falling for these lies.

Phishing Scams

guys using his laptop

Phishing scams involve scammers using emails and text messages to manipulate you into compromising your personal information. This personal information can include passwords, social security numbers, bank account details, addresses, and parents’ details. Their main motive is to gain access to your personal accounts for example your bank account or your email. Phishing scams are very popular because they are very accessible and the scammer is able to reach a wide range of audiences through text messages or emails.

It is reported that almost 57 million US dollars were lost in phishing scams in 2019. These emails and text messages are carefully curated and they seem like they’re from actual trusted companies or proper organizations. These emails look like they are true and many people fall into this trap. These scams involve you clicking on a link and then you enter your personal information. These phishing scams normally use third-party links and they can look believable but please do not fall for this. Keep your personal information to yourself.

How do they work?

Phishing is primarily a type of attack that is socially engineered and allows a scammer to easily steal private and confidential user information and data which includes login credentials and credit card numbers. It primarily occurs when an attacker acts as a trusted entity or a trusted organization and manipulates a victim into opening a text message, instant message, or email. There are detrimental and devastating results of phishing attacks which include unauthorized purchases, stealing funds, or even identity theft and fraud. In addition to this, phishing is normally used to gain privileged access to private and confidential information.

question marks

Examples of common phishing attacks include an email from some weird organization such as myuniversity.edu which is commonly distributed to several faculty members these emails always state that the user’s password is about to expire and it states that you need to go to the link to renew your password within 24 hours. Now once you click this link you’re redirected to the bogus page and it looks completely real but it’s actually a scam. Phishing scams make use of third-party links and third-party websites which are very dangerous and the scammer hacks into your laptop or phone to gain access to privileged information. Now there are several techniques and ways that phishing scams operate. Let’s discuss a few and let’s discuss how they operate.

1. Email phishing scams

Now, these are common types of scams through which scammers attack the victim through the email address. A scammer or an attacker mainly sends tons of and I’m not talking hundreds or just a bunch I’m talking about almost thousands of fraudulent messages which can lead to the gain of significant information and large sums of money can be withdrawn.  Now, these email phishing techniques can lead to several outcomes. This includes the scammers pretending to be a fake financial institution and requesting you to change your password within the next 24 hours: these scammers always create a sense of urgency and make it seem like it’s the end of the world if the victim or the user doesn’t change their password or click on the email link.

2. Spear phishing
call and message

Now spear phishing is yet another common technique through which scammers target a specific enterprise or a person instead of targeting random people. This type of phishing attack is far more organized and it requires an experienced scammer to carry this out.  Now let me tell you how this attack works and how it plays out. Firstly the attacker who is the scammer or the fraudster searches the names of all the employees working within an organization and targets employees working in a specific department. They research the names of the employees and then they gain access to the latest project invoices.

They pose as the marketing or finance director ( this depends on the department they are targeting) and they email the project manager using a subject line that says updated invoices and they completely duplicate the logo, text, and the style of the company’s standard email format or template. Then they attach a link in the email that mainly redirects the employees to a password-protected internal document which is basically a stolen invoice. The manager is then requested to log in with their credentials so that they can easily view the document. The scammer then easily steals these credentials and gains full access to all the privileged areas of an organization’s network.

Investment or Business Opportunity Crypto Scams

financial chart on hand

Now, this is yet another common scamming method that I advise you to refrain from. This is the most common yet most easy way of scamming people. By its name, you can get an idea of what this scam truly is. The number one way people fall victim to cryptocurrency-related scams is through these fake investment and business opportunities. It is so easy to scam people on cryptocurrency and you might ask why? Let me tell you why. People, especially young traders are only interested in cryptocurrency because they want quick, hassle-free, and easy returns which is absolutely impossible.

No one can guarantee success in such a volatile market. However, these young traders are very vulnerable and scammers which include fraudulent brokers market their services and guarantee these individuals that this is the best investment offer and they will reap tons of profits. Now, this is where these traders easily get scammed. These brokers are providing easy and hassle-free profits which attract traders looking for high returns. 

These investment opportunity and business opportunity scams are mainly scams where traders are told by brokers that this is the best investment offer that will make them a millionaire in cryptocurrency and these traders actually fall for this scam. This is how these traders get scammed and this is mainly how investment and business opportunity scams take place. They take place by brokers manipulating and luring young traders by promising unbelievable profits and returns.

How do they work?

question face men

These scams mainly operate through brokers manipulating and luring young traders. Now you might wonder how they lure in young traders and your curiosity is absolutely justified. These young traders enter cryptocurrency either through their friends saying it’s trendy or by hearing stories of cryptocurrency millionaires. I mean yes there are several people who have massively gained from this platform but it was not due to some guarantee instead it was due to price movements in their favor and a tad bit of luck and a lot of knowledge and experience.

If you invested in a new cryptocurrency and found that you were scammed, then reach out to us to help your recover your money.

Young traders lack knowledge and expertise hence they are easily scammed on this platform and lose tons of money. These brokers approach them with unbeatable offers such as high returns, risk-free, and hassle-free. These brokers market their services immensely and even go as far as showing fake reviews of customers even though they are scammers. The main reason for an increased number of investment scams is traders and young traders who are looking for quick profits. This niche is the main target of these brokers and they target these people because they know they are more vulnerable and they have inadequate knowledge.

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CHAPTER 3: Blacklisted Companies Known for Conducting Cryptocurrency Scams in 2022

1. 0chain

0chain is primarily a cryptocurrency broker who is located in the United Kingdom. This broker offered the clients automated cryptocurrency mining as well as an E-wallet. The website contains no information other than the founder’s name, including Tom Austin and Saswata Basu.  There was a recent evaluation of this company. It was found out that this company is operating illegally and without any financial regulatory authorization and hence has been known as a possible crypto fraud company. There are several scams revolving around cryptocurrency platforms.

0chain

This company was primarily created as a decentralized alternative to traditional banking; however, the capacity to freely transact globally without relying on any centralized system allowed scammers to have a perfect opportunity for taking advantage of this new technology. The website itself seems very sketchy as there is no information on the website, and this website fails to actually state where it operates. There is no evidence of the company being licensed. The broker claims to be working and affiliated with several major corporations; however, there is no factual evidence online. This company has been criticized for being a fraudulent company for a long time.

2. Adrenaline coin

Adrenaline coin is mainly a cutting-edge fintech firm specializing in developing cryptocurrency trading and artificial intelligence robots. Kevin Tuohy is the president and the owner of adrenaline challenge coins located in the United States. Several traders have worked with this company, and there have been tons of complaints. Firstly this company charges a considerable commission and investors have several complaints against this company refunding any money. There have been numerous complainants of investors making payments, but this company has failed to process their loans, and there has been no response from this firm.

bitcoin invest

Moreover, the company’s support and customer help are nonexistent. Several traders have tried to call and reach for customer support, but there has been no response. In addition to this, several investors have claimed that they are unable to transfer their money to their bank account, which is yet another red flag of this company. Need I say more? This company is scamming people by charging hefty commissions and disappearing when the traders want to transfer their money. This is a huge red flag, and I’d suggest traders avoid this company as there are too many red flags.

3. Airbon

This company is a cryptocurrency trading platform that provides high-tech hybrid platforms for trading. It was founded in 2018, and the company claims to be a reliable trading platform.  There have been tons of complaints regarding this platform, including the traders being unable to contact the customer support team. They mainly claim that they receive no response, and whenever they try contacting the company through email or their website, they have always received no response. Moreover, investors have complaints that they cannot transfer money from their airbon account to their bank account, and the company fails to give any address.

men holding bitcoin

The company has been known for operating under unethical practices and is known to be a possible fraudulent company. They have dubious customer services and are known for disappearing whenever customers need their help. This platform is known for pathetic customer service and is not recommended for traders. It’s better to avoid this company as these traders have several complaints against Airbon. The traders’ funds are unsafe in this company as they fail to respond, and it’s better to research more about the company before actually investing in it.

4. AlZeus

This company is considered a blockchain platform designed mainly for applications with millions of users. This blockchain is designed for mass-market business to consumer and peer-to-peer applications with many end-users. This was primarily created for consumer application experts for consumer applications. There is almost no data available on this platform, which clearly states how unreliable this firm is. This company is known to operate illegally without any regulatory authority and beware if you’re thinking of investing with them.

bitcoins and 100 dollar

A business with no evidence of its successful customers or traders is a scam. It’s best to stay away from all such firms and invest in a company with adequate online information. AlZeus has no online information and doesn’t fall into the advertising you see. This company is not reliable at all, and it’s best to invest with a company or a tested brokerage that is reliable. It’s better to avoid this company as these traders have several complaints against AlZeus. The traders’ funds are unsafe in this company as they fail to respond, and it’s better to research more about the company before actually investing in it.

5. Airfio

Airfio is yet another company that intends to incorporate machine learning capabilities into its network. The company offers Visa cards, a mining application, decentralized exchange, and several other services. The number one problem with Airfio was that the broker’s address wasn’t listed in the contact section. Now, this is one sketchy and dubious aspect of the company. The company has caused several losses to the clients, and due to this, there have been several complaints against the company being a probable fraudulent company. The company is known for massive withdrawal costs.

airfio

There are several complaints against this company, which is why the company is known to be fraudulent. So beware and refrain from investing in this company. It’s best to avoid such companies. This company has been linked with fraud and has usually been associated with scamming and fraudulent activities. It’s recommended that all traders avoid such companies related to fraudulent activities. The traders’ funds are unsafe in this company as they fail to respond and it’s better to research more about the company before actually investing in it. Learn more on how to protect yourself by visiting our website!

Avoid This Emerging Scam & Protect Your Assets

Conclusively, this article is incredible for all those looking for possible scamming methods in crypto to avoid being a victim of scams. This article is incredibly helpful for all the new traders who are looking for investing but don’t know where to start. The number one tip I can give you if you’re interested in cryptocurrency is don’t have unrealistic expectations from it. Don’t think you’ll be rich within days because you read online about cryptocurrency millionaires or you heard it’s trendy. If you’re in it for this I suggest you invest somewhere else because this trading platform is not for you. You need to be patient with cryptocurrency and everything you invest is a risk.

You aren’t and cannot be guaranteed a return or a profit by any investor. The market is highly volatile which prevents any guaranteed success. It’s all on the trades you make and the market volatility at that time. It might work in your favor and it might not. Don’t invest all your savings in cryptocurrency. Start small and then move forward once you’re experienced enough. Avoid any brokerage or broker who says there’s no risk and high returns. By now you should be smart enough to know that. Beware and safe trading fellow crypto traders!

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