Bitcoin scams, before the talk about these scams we know that Bitcoin currency has a blockchain, and this blockchain is for making the currency secure in digital world. But digital wallets are still open for hacking. Also there are many people are still open to scamming. There are many scams but here we are talking about the five worst scams towards bitcoin.
Bitcoin Scams, the top five worst scams
There are many scams concerning bitcoin, and we will have a look at the five worst scams towards bitcoin
1- The Optioment Ploy
It is one of the worst types of cryptocurrency scams. It includes a fake Initial Coin Offering (ICO). The company equivalent is going public. Also an ICO happens when firstly a business starts to sell its cryptocurrency. Many ICO scams use main investment fraud a.k.a. When the company does not exist, and has no plan to make a profit. There are many ICO scams may pretend to be other real cryptocurrency organizations. This makes a confusion for many buyers who are searching online. Bitcoin Savings and Trust was more sharp. It began as an ICO scam that is around a simple ponzi scheme. After that it kept on going. Unwitting investors were promised a wonderful returns such as 7% per week. Furthermore there are the stealing of more than 265,000 bitcoins through fraud. In 2012 the whole Savings and Trust scheme collapsed in the end. Also the organizer Trendon Shavers was in court battles for many years. This led to his imprisonment, and a fine of $97 million.
2- The Massive MT. Gox Disaster
It is one of the most known crashes in bitcoin. A tangled Knot of fraud, mistakes, and corruption. In 2010 MT. Gox was a bitcoin exchange in Tokyo. It had the majority of transactions in bitcoin all over the world, because many people thought that it was safe. MT. Gox proved to become anything but secure. In a few years it had many massive successful hacking attacks, governmental investigations, payment processing issues. Also it had many bank run as people tried to withdraw their funds. They found that it might not even be possible. In a devastating blow concerning the bitcoin market MT. Gox gave up. The company showed that it had lost 850,000 bitcoins, worth $450 million dollars. Or $8 billion at today’s usual market value. Millions of dollars were lost in fraud. Also company agents and partners made many illegal acts.
3- Bitcoin Gold and False Promises
Bitcoin gold was a project, and its design is for creation a new form of cryptocurrency. Also it tapped into the bitcoin name. That trick in the brand was a little shady. Scammers built a website, and this website is (mybtgwallet.com). It offered for users a once lifetime opportunity for generating bitcoin gold wallets. The only thing to do was to submit their private keys that is for protection their cryptocurrency wallets.
4- Canadian Bitcoins and the Simplest Scam
This scam happened to Canadian Bitcoins. Canadian Bitcoins is for managing bitcoins for Canadian investors. The hackers hacked the exchange, and stole at least $100,000 dollars worth of bitcoins. The scam happened when Canadian Bitcoins leased out some space at a Rogers Data Center for important server hardware. This kind of hardware you could use to hack into the exchange. A hacker sent a message to Rogers Data Center. This message is ( Hello, My name is James Grant. I am the Canadian bitcoins CEO. I need all your security codes). Rogers verified that the Canadian bitcoins CEO was really named James Grant. After that they sent all the security codes to the hacker. No one checked if the message was from James Grant or tried to contact James Grant via professional channels.
5- Silk Road’s Ridiculous Email Trap
Silk Road became an infamous market for trading drugs, and other many illegal things. The FBI and other law enforcement organizations took down it. They helped to cement bitcoin as it is a legitimate currency that governments cared about. But there is something wrong happened. That happened when the government agreed about auction offer the bitcoins seized from Silk Road. It contacted participants to make them know about the auction. Also ask if they were in interest to sign up. Unfotunately because of a classic (bcc) email mistake, all bidders could see everyone the email was sent to. Quickly the list became copied, sold, and stolen. So many of scam emails sent to all these people who were in interest in buying bitcoins. Phishing like this one pretended to be from the government or related agencies. seeking out sensitive financial information that made the scammers to steal bitcoins from those participants.