#2 Ponzi schemes and other types of cryptocurrency scams

Cryptocurrency scams can take many forms, from individuals who claim to be able to trade for you, ICOs and even cryptocurrencies themselves.


According to the report by CipherTrace, in 2019, USD 4.26 billion in total has been stolen from cryptocurrency exchanges, investors and users.


In 2021, Finiko became one of the largest scams involving cryptocurrencies, with victims’ losses estimated at $100 million.


The founder of Finiko has been arrested, and his accomplices are being sought by Russian authorities. Moscow police arrested Kirill Doronin on charges of allegedly defrauding $100 million from his investors, although some reports purport the figure could be over $1 billion.


Finiko was established in the city of Kazan in 2019 and posed as a legitimate BTC investment firm. The scheme promised its investors ludicrous returns, up to 30% monthly. It also claimed its investors would be able to purchase apartments and cars at discounts with the assistance of the founders, according to the Moscow Times. Investors were supposed to put in bitcoin and get the native token of Finiko in return.


Before his arrest, Doronin had attempted to flee to Turkey, going as far as obtaining Turkish citizenship under the name Onur Namik. Russian police have now put his co-conspirators Marat Sabirov, Zygmunt Zygmuntovich and Edward Sabirov on their wanted list.

Remember, if something seems to be too good to be true, it probably is.

Before you invest, check it out. Research online for the name of the company and the cryptocurrency name, plus words such as “review”, “scam”, or “complaint to see what others are saying.

Look for claims like these to help you spot the companies and people to avoid:

Scammers guarantee that you will make money. If they promise you will make a profit, that’s a scam, even if there is a celebrity endorsement. Keep in mind that testimonials can be easily faked.

Scammers promise big payouts with guaranteed returns. Nobody can guarantee you will be able to double your money, and do it within a short period of time.

Scammers promise free money. Remember that free money promises are always fake.

Scammers make big claims without details or explanations. Smart business people want to understand how their investment works, and where the money is going. Good investments advisors would always want to share that information.

Remember, if something seems to be too good to be true, it probably is.

#6CryptoMistakes #PonziSchemes

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