Glosario

Scam

Easy

A scheme that is designed to dupe people out of cash or crypto.

What Is a Scam?

Cryptocurrency scams have been growing at an alarming scale and have become a popular method for fraudsters to deceive cryptocurrency investors.

Cryptocurrency scams can take many forms — including blackmail, bogus investment schemes and fake business opportunities. Ponzi schemes and fake initial coin offerings have also been common in the past.
Scammers may send users a text message or email asking the user to pay using Bitcoin.
Ponzi schemes are a type of investment scam that may involve BTC and other virtual currencies where existing investors are paid with funds collected from more recent investors.

SEC v Shavers was a case where the organizer of an alleged Ponzi scheme promoted an investment opportunity that had falsely promised investors up to 7% per of returns each week.

The scheme further promised investors that the funds would be used to buy more BTC.

Chainalysis estimates roughly $2 billion was generated by one Ponzi scheme alone back in 2019, which involved BTC and Ethereum.

Related Articles