The confirmed list of fake ICOs, Ponzi schemes and wallets
Thinking about getting involved in bitcoin or an ICO? You’ll need to make sure you look at this list.
To begin with, finder has compiled a useful list of known scams going around the Internet. This is a good place to start if the business you are dealing with seems a bit suspicious. Another good place for information is forums like Reddit. Reddit forums have many users and there may be some reviews about the company.
How to deal with cryptocurrency scams
Cryptocurrencies operate in a largely unregulated space. That means if you lose your money, there is no protection and often no way to get your money back. This is why it is important to deal with reputable companies who have numerous good reviews. Beyond this, keep an eye on our fake ICOs and official charges list. Expect that list to grow in 2018.
Another helpful hint is to remember that if it seems shady, it probably is. If the return seems too good to be true, it probably is. It is best to conduct your own thorough research into your cryptocurrency trades.
If all else fails, feel free to leave us a comment and one of our friendly staff will be happy to assist.
Fake ICOs and official charges
The table beneath contains a regularly updated list of all confirmed fake initial coin offerings. The group below represents organisations that have been charged by the United States Securities and Exchange Commission or other relevant authorities.
Fake initial coin offerings / Ponzi schemes
|Fake ICO Name||Description|
|Confido||Promising a new decentralised shopping exchange, the programme would be suspended indefinitely. This was after raising US$375,000.|
|REcoin||Maksim Zaslavskiy, founder of REcoin, has been charged by the US Securities and Exchange Commission for launching a US$15 million ICO. REcoin was marketed as the first decentralised cryptocurrency backed by property assets.|
|PlexCoin||The creators of this ICO are currently facing charges in Canada and the United States. The creator of PlexCoin, Dominic Lacroix, was sentenced to two months in jail for contempt of court relating to an order not to launch the PlexCoin ICO.|
|BitConnect||This company received a cease and desist order (4 January 2018) from the Texas State Securities and Exchange Commission|
Fake wallet scams are called "phishing scams." These are complex ploys that are very sneaky and could dupe the unseasoned trader. For example, if you're downloading a wallet for cryptocurrency storage, make sure the web address is correct (see picture). By downloading an incorrect wallet, you stand the chance of losing the entire purchase.
What the picture goes to show is just how easy it can be to access a fake wallet and potentially lose money. As a rule, a trader is best placed to obtain a physical wallet to hold and add to at the trader's discretion.
|My Ether Wallet||An app wallet that was designed for the Apple mobile operating system iOS.
This wallet became one of the top rated apps on the Apple App store and managed to fleece US$735,000 from unaware victims. It successfully impersonated the legitimate MyEtherWallet program.
|MyBTG Wallet||An online wallet that asked for access to private keys. This resulted in the loss or theft of over US$1 million|
The table below contains a list of known money-for-bitcoin scams. These scams differ in the ways they seek to trick prospective traders into coughing up their hard earned money.
The table below has been referenced from bitcointalk.org
- The most common of these ask traders to deposit money for cryptocurrency.
- The most costly of these are the ones that try to get traders to exchange their bitcoin for money.
- A large number of these scams are also mining scams that ask for money to receive shares in the profits of the mining enterprise.
- Quite often the mining enterprise does not exist at all.
- Commercial use of Bitcoin Cash is dwindling
- eToro cements deal with Premier League soccer teams using bitcoin as payment
- Bitcoin and cryptocurrency round-up 21 August 2018
- Bakkt CEO: It’s time to put a price tag on bitcoin as a hard asset
- Bitcoin trader arrested for failure to practise security theatre