The Ten Sins of Crypto: How Scams and NFT Frauds Destroy Investors' Dreams

Billions of dollars vanish into thin air, founders disappear into the sky, and investment portfolios go to zero overnight—these are not movie plots but real tragedies unfolding repeatedly in the crypto ecosystem. Scams and NFT frauds have become indelible stains on the industry, each incident serving as a warning: high returns often hide a bottomless abyss. This article reviews the ten most shocking scams in crypto history, revealing a cruel truth—trust can collapse in an instant.

Ponzi Schemes at the Exchange Level: OneCoin and Thodex’s Money Black Holes

The story of OneCoin begins with an enticing promise. By 2017, the project had gathered 3 million members, held grand conferences, and even claimed to be the “Bitcoin killer.” But beneath its shiny exterior lurked a carefully crafted pyramid scheme. Founder Ruja Ignatova vanished after boarding a flight from Sofia to Athens in 2017, taking with her $4 billion of investors’ funds. To this day, the “Crypto Queen” has not reappeared, and the hundreds of millions of victims’ losses serve as a warning to the industry.

If OneCoin was a scam in the shadows, Thodex was a daylight robbery. In April 2021, founder Faruk Fatih Özer, of a new exchange claiming over 100,000 investors, disappeared with $2 billion as Bitcoin hit $62,000. Authorities eventually arrested him, and a record 11,196-year prison sentence was handed down—an ironic number, as victims will never see their refunds.

Platform Collapse and Trust Breakdown: FTX and Terra Luna’s Financial Disasters

In November 2022, the crypto world faced an unprecedented trust crisis. Sam Bankman-Fried, hailed as the industry’s savior and known for his political donations, suddenly became the biggest scammer. The global top-tier exchange filed for bankruptcy, leaving an $8 billion black hole in funds. From luxurious penthouses to political donations, all the glamorous facades collapsed in an instant.

The Terra Luna incident, occurring the same year, also shocked the industry. In May 2022, once the third-largest ecosystem in crypto, Terra collapsed completely within 72 hours. Its algorithmic stablecoin UST lost its peg, the Anchor protocol disintegrated, and $50 billion vanished into thin air. Holders watched as their lifelong savings turned from blue-chip assets into worthless paper—this disaster redefined the meaning of “risk.”

Illusory Dreams of NFTs: From False Promises to Collective Disillusionment

NFT scams reflect the regulatory vacuum in this emerging sector. Evolved Apes promised a fighting game and successfully sold 10,000 NFTs but disappeared immediately after funding, taking $2.7 million and leaving artists unpaid. The only “evolution” of this project was creating one of the fastest scams to be exposed.

The same pattern repeated with Baller Apes. On October 1, 2021, 5,000 virtual apes launched at 2 SOL each, then fell silent—developers vanished with $2 million, and buyers suffered losses due to failed mints. The name itself became a parody: “High-level players” proved to be high-level scammers.

Pixelmon was promoted as “Web3’s Pokémon,” raising $70 million. But after the art was revealed, the community went into chaos—these NFTs looked like cursed Minecraft mods. From top IPs to industry laughingstocks, Pixelmon became a symbol of overhyped NFT scams. In the same year, Blockverse claimed to build “the Minecraft of the metaverse,” sold 10,000 NFTs, raised 1,292 ETH, then cut all ties with the world, with the team disappearing and assets transferred to private wallets, never to be seen again.

Token Frenzy and Rapid Collapse: $SQUID and Bored Bunnies’ Farce

Inspired by Netflix’s hit series “Squid Game,” $SQUID Token emerged. This “play-to-earn” project soared to $2,800 but plummeted to $0.0007 within minutes. After developers withdrew $3.3 million, they deleted the Telegram group, blaming “pressure from scammers,” offering no explanation, apology, or refunds.

Bored Bunnies demonstrated another scam form. The project heavily promoted itself, raised $20 million, then went silent. Only after on-chain investigator ZachXBT intervened did the truth come out. The team tried to salvage reputation by buying virtual land in Sandbox and promising hollow products, but everyone knew—the rabbits were already cooked.

Industry Reflection: Why Do Scams Become the Norm?

These ten cases are not isolated but reveal systemic vulnerabilities in the crypto industry. The rampant NFT and token scams stem from: lagging regulation, lack of identity verification, opaque fund flows, and absent project vetting standards. Investors, driven by the pursuit of high returns, often neglect basic due diligence. Meanwhile, project teams exploit this psychology through hype, false promises, and rapid fundraising, then vanish into thin air.

For investors, preventing NFT scams and frauds isn’t complicated: review development team backgrounds, verify project histories, analyze open-source code, and be wary of overpromising. For the industry, establishing transparent vetting mechanisms, improving investor protection, and advancing on-chain identity verification are long-term solutions. These ten sins are not the end of crypto but serve as repeated textbook warnings.