General
In 2024, cryptocurrency scams and hacks caused more than a billion of dollars in losses worldwide.
Understanding risks is crucial for anyone participating in the crypto space. Whether you trade, invest, or simply store assets, knowing how scams operate can help protect your holdings.
From Ponzi schemes to exchange collapses and large-scale exploits, billions of dollars have been stolen, leaving investors wary and regulators struggling to keep up.
In this deep dive, we’ll explore some of the most notorious crypto frauds and hacks in history,
1. OneCoin – The $4 Billion Ponzi Scheme
Arguably the most infamous crypto scam, OneCoin was founded in 2014 by Ruja Ignatova, known as the “Cryptoqueen.” Marketed as a revolutionary cryptocurrency, OneCoin was, in reality, a Ponzi scheme that defrauded investors of over $4 billion. Ignatova disappeared in 2017 and remains one of the FBI’s most-wanted fugitives. This case remains a stark reminder of the dangers of projects lacking transparency and verifiable blockchain technology.
2. Mt. Gox – The Largest Bitcoin Exchange Collapse
Before Binance and Coinbase, Mt. Gox was the dominant Bitcoin exchange, processing over 70% of global BTC transactions. In 2014, it filed for bankruptcy after reporting the loss of 850,000 BTC (valued at $450 million at the time, now worth billions). However, later investigations revealed that around 200,000 BTC were recovered, reducing the net loss. This incident underscored the risks of centralized custodianship and inadequate security practices.
3. Ronin Network Hack – The Largest DeFi Exploit
In March 2022, the Ronin Network, which supports the blockchain game Axie Infinity, suffered a devastating attack. Hackers exploited a security vulnerability and stole $625 million worth of ETH and USDC, making it the largest DeFi hack to date. The incident highlighted the critical importance of securing blockchain bridges and improving multi-signature authentication.
4. FTX Collapse – The Fall of a Crypto Giant
FTX, once one of the world’s largest exchanges, collapsed in late 2022 following revelations of mismanaged customer funds and financial insolvency. The bankruptcy filing in November 2022 left users unable to withdraw billions in assets. Founder Sam Bankman-Fried was later charged with multiple counts of fraud. This case emphasized the importance of due diligence when choosing crypto platforms and the risks of unregulated centralized exchanges.
5. Atomic Wallet Hack – Millions Stolen
In mid-2023, a vulnerability in Atomic Wallet led to the theft of over $100 million from users’ wallets. Unlike exchange hacks, this incident demonstrated the risks of software wallets, reinforcing the importance of self-custody solutions and hardware wallets for securing digital assets.
6. Bybit Hack – The Largest Crypto Theft in History
One of the most recent large-scale security breaches, Bybit, a major cryptocurrency exchange, was hacked in February 2025. Cybercriminals stole approximately $1.4 billion in digital assets, making it the largest theft in crypto history. Reports suggest that the North Korean-linked Lazarus Group was behind the attack. This incident further reinforces the dangers of keeping funds on centralized exchanges and the need for enhanced security protocols.
Lessons Learned & How to Avoid Crypto Scams
While the crypto market is filled with opportunities, investors must remain vigilant. Here are some key takeaways to protect your assets:
- Do Your Own Research (DYOR): Investigate projects thoroughly before investing.
- Beware of Unrealistic Returns: If an offer sounds too good to be true, it probably is.
- Check for Transparency: Legitimate projects have clear whitepapers, verifiable teams, and open communication.
- Avoid Hype-Driven Investments: Scammers exploit FOMO—stay rational and skeptical.
- Use Secure Wallets: Prefer cold wallets over hot wallets or exchange storage.
- Enable Two-Factor Authentication (2FA): Always use 2FA on your exchange accounts and wallets.
DEXTools’ Tips for Keeping Your Crypto Safe
We prioritize security and transparency. Here are some essential tips from our team to help safeguard your investments:
- Use Reputable Platforms: Trade only on well-established and audited exchanges.
- Monitor Smart Contract Risks: Before investing in a token, check for potential vulnerabilities in its smart contract.
- Be Wary of Permission Requests: Always verify the permissions granted when connecting your wallet to a new platform.
- Stay Updated on Security News: Follow credible crypto security sources to keep informed about the latest scams and hacks.
- Diversify Your Holdings: Don’t keep all your assets in a single wallet or exchange—spread your risk.
- Verify Before You Trust: Scammers frequently impersonate legitimate projects. Always confirm sources through official channels.
As the crypto industry continues to mature, new threats will emerge. However, by staying informed and practicing secure investment strategies, you can navigate the market safely and capitalize on genuine opportunities without falling victim to fraud.
Stay tuned to DEXTools for more insights into the evolving world of crypto!
