Annual Review | 2019 Cryptocurrency Scams

Projects that use the name of blockchain for speculation emerge one after another every year. Looking back at the scams that occurred in the cryptocurrency circle in 2019, the "first capital pool" PlusToken involved more than 20 billion yuan; the global Ponzi scheme Onecoin, which was the longest active and covered the most countries, finally stopped operating in December; Qubu and blockchain pet projects were reported by many TV stations. In addition, what other fancy scams were there in the cryptocurrency circle in 2019?

The largest amount of money involved in domestic cases: PlusToken

The largest Ponzi scheme in the cryptocurrency world in 2019, with a total amount of over 20 billion. In August, the Yancheng People's Procuratorate approved the arrest of the suspects in accordance with the law, and the case is currently under further investigation.

The most typical pyramid scheme scam: Qubu APP

Disguised as blockchain, Qubu is not only suspected of pyramid schemes and illegal fundraising, but also suspected of issuing coins for 1C0. The Changsha Industrial and Commercial Bureau has opened a case against it in October.

The most influential in the world: Onecoin

Onecoin, the most influential global Ponzi scheme, involved a total amount of 4 billion pounds, covering more than 200 countries and over 3 million users. It has been active in China for 5 years and has been filed many times. In December 2019, Onecoin finally ceased operations.

The fastest exchange: Newton Exchange

Newton Exchange became the world's second largest exchange in 43 days. It innovated the unblocking zone, used the gravitational trading mechanism, and created a gimmick of scalping to create a coin price that would only rise but not fall. After being active for a period of time, it was reported by many media as a Ponzi scheme trap.

The first decentralized exchange to go bankrupt: EtherDelta

EtherDelta, the first decentralized exchange to run away, was involved in a financial fraud case. In August 2019, it was revealed that the Chinese police had officially filed a case against it.

The most innovative fund: VDS

It pioneered the resonance model, which skyrocketed 40 times in two months, attracted 30,000 bitcoins, and once ranked just behind XMR in the global cryptocurrency market value. A number of resonance copycats emerged in the market.

The most thorough arrest case: BISS Exchange

BISS (Coin Market) Exchange focused on coin-stock trading in 2018 and the membership model in 2019 in conjunction with IEO. After that, it was investigated by regulators and became the first case in the cryptocurrency circle where all employees of a virtual currency exchange were shut down.

Self-directed and self-acted Ponzi scheme: Lucky 12 Zodiac signs

They earned high returns by raising electronic pets, and when the market crashed, they ran away with the money, claiming that they had been hacked and needed to shut down the platform for maintenance. The amount involved in the Lucky Zodiac case reached 8 billion yuan, and the victims exceeded hundreds of thousands.

The largest overseas fugitive mining machine case: Snail Star Miner

Reaping 2 billion in 4 months, the Blockchain Snail Interstellar Miner took advantage of the popularity of IPFS to commit fraud, built its own sales, agency, mining, and exchange trading links, and more than 7,000 people were victimized.

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