have an account?【sign in】Crypto Pyramid Scheme Companies List: A Comprehensive List of Cryptocurrency Ponzi Schemes
bashamauthorThe rise of cryptocurrency has brought about a new era of investment and trading. However, along with this growth has come a number of fraudulent companies that use the hype around cryptocurrency to dupe unsuspecting investors. These so-called "crypto pyramid scheme" companies take advantage of the unknown and unregulated nature of the cryptocurrency market to prey on investors, often using the promise of extraordinary returns to lure them in. In this article, we will provide a comprehensive list of some of the most well-known crypto pyramid scheme companies, along with their allegations of fraud and other red flags.
1. BitConnect
BitConnect is arguably the most well-known crypto pyramid scheme company. Originally based in Australia, the company allegedly took $2.4 billion from investors worldwide, promising returns of up to 100% in just a few weeks. BitConnect has been the subject of multiple regulatory actions and investigations, including from the Securities and Exchange Commission (SEC) in the United States. The company has also been accused of engaging in Ponzi scheme-like activities, where it paid early investors with funds from later investors.
2. OneCoin
OneCoin is another widely publicized crypto pyramid scheme that targeted investors in over 100 countries. The company claimed to be a "new technology" that would revolutionize the cryptocurrency industry, offering high returns on investment. OneCoin has been linked to several criminal activities, including human trafficking and money laundering. The company's founders, Gary and Tom Harris, have been arrested and charged with fraud in multiple countries.
3. FreedomCoin
FreedomCoin is another crypto pyramid scheme that targeted unsuspecting investors with promises of massive returns. The company claimed to be developing a new cryptocurrency that would revolutionize the internet, offering investors the opportunity to join a "community of change." FreedomCoin has been the subject of multiple lawsuits and allegations of fraud.
4. BitClub Network
BitClub Network is another crypto pyramid scheme that targeted investors with promises of high returns on investment. The company claimed to be a "virtual mining platform" that allowed investors to earn profits through the mining of cryptocurrency. BitClub Network has been the subject of multiple regulatory actions and investigations, including from the Securities and Exchange Commission (SEC) in the United States. The company's founders, Maksim Vardanyan and Vadim Tabudrov, have been arrested and charged with fraud in the United States.
5. PlexCoin
PlexCoin is another crypto pyramid scheme that targeted investors with promises of high returns on investment. The company claimed to be a "blockchain technology solution" that offered investors the opportunity to "join the revolution." PlexCoin has been the subject of multiple regulatory actions and investigations, including from the Ontario Securities Commission in Canada. The company's founders, Alex Sunstein and Andrew Hall, have been arrested and charged with fraud in Canada.
Cryptocurrency investment may offer opportunities for growth and profit, but it is essential for investors to be aware of the potential risks and scams that come with this new market. By researching the company and its management, as well as examining the details of the investment opportunity, investors can help protect themselves from becoming victims of crypto pyramid scheme companies.