Bitcoin

Cybercriminals stole $ 16 billion from users in 12 years

Navigation

How The FBI Caught the World’s Most Wanted Hacker

Cybercriminals stole $ 16 billion from users in 12 years

Cybercriminals stole $ 16 billion from users in 12 years
CONTENT

  • Scammers lured over $ 16 billion from investors

  • The criminals of the most high-profile scams received a total of 161 years in prison

  • Victims gave money to scammers themselves, expecting record profits

International consortium of news organizations developing transparency standards.

Since 2012, investors have lost over $ 16 billion by investing in fake ICOs, Ponzi schemes, and other cryptocurrency projects of scammers..

Cybercriminals stole $ 16 billion from users in 12 years

The loudest cryptocurrency scams of 2012-2020

According to a study by Xangle, between 2012 and 2020, cybercriminals organized over 136 different scams and stole over $ 16 billion from investors. The most notorious cryptocurrency scams were Bitcoin Savings and Trust, Arbistar 2.0 and OneCoin..

The first major scam in the cryptocurrency market was Bitcoin Savings and Trust, which was launched in 2012 and ultimately lured out 146,000 bitcoins from investors, or over $ 5 billion at current rates..

In 2017 and 2018, the most scams were launched, which cost investors millions of lost money. The most famous scams were Arbistar 2.0 and OneCoin, which received funds from users totaling over $ 5 billion..

Xangle Study Data

“Arbistar 2.0, based in Spain, was a Ponzi scheme, while everyone else was a regular pyramid scheme that used their existing investor base to attract more investors for fraud,” the study said..

Cybercriminals stole $ 16 billion from users in 12 years

Since 2012, 71 projects have been prosecuted, resulting in the arrest of 411 people. PlusToken, which stole about $ 2.25 billion from investors, had the most arrests with 109 people arrested for their role in the scheme, 27 of whom are believed to have played a key role.

To date, 15 project participants have been sentenced to prison for their crimes. The total prison sentence is approximately 161 years.

Xangle Study Data

Read about other high-profile scam projects here.

Users are to blame for the loss of money

The cryptocurrency market attracts scammers and scammers. Relative anonymity and the possibility of quick profit motivates criminals to launch new and new schemes to steal funds. And in most cases, victims voluntarily give their money into the hands of scammers..

“I think the market will always be like this. And the loss of money by the investor forms natural selection in the market. Because people who understand at least a little about finance, investments, would hardly have reacted to such a cold call and would have taken the money to no one knows who. But fraudulent schemes have always existed – in Moscow, Kiev, and London. Unfortunately, the market cannot defend against them. And if you hear that a trader promises exorbitant interest, it means that there is a fraudulent scheme at work, “trader Kim Kelevra explained in an interview for BeInCrypto..

The victims themselves do not deny that they gave money to scammers, believing in the stories of the swindlers. In particular, in this way, the organizers of the OneCoin scam lured $ 4 billion from users. One of the victims of the fraud, Jen McAdam, said in her book that she herself gave the scammers $ 300 thousand, believing in the stories of the scammers.

Ukrainian criminals followed the same path and began to “squeeze” the last savings from foreign investors, promising them record profits. Thus, the scammers were able to get over $ 100 million.

Cybercriminals stole $ 16 billion from users in 12 years

Earlier, BeInCrypto talked about five common ways to steal cryptocurrency in 2020.

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

Share Article

Similar articles

Similar articles