Category: Crypto Scandal

Crypto scandals refer to events involving fraud, mismanagement, or unethical behavior within the cryptocurrency industry. These incidents often lead to significant financial losses, loss of trust, and negative public perception of cryptocurrencies and blockchain technology.

Sam Bankman-Fried Turns 33 in Jail, Claims Strong GOP Ties in New Interview

Summary: In a behind-bars interview, FTX’s former CEO Sam Bankman-Fried spoke about his political affiliations, life in prison, and ongoing court theatrics. He claimed to be nearer to Republicans than everyone assumed and stood up for former colleague Ryan Salame. Bankman-Fried’s legal team is appealing his 25-year sentence while his parents seek a presidential pardon.

Sam Bankman-Fried marked his 33rd birthday in prison with a candid interview, reflecting on his conviction, political ties, and life behind bars. Speaking to Tucker Carlson on March of this year, the former FTX CEO insisted he wasn’t a criminal and argued that charges against ex-colleague Ryan Salame were politically driven due to Salame’s Republican affiliations.

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Despite his well-known donations to Democrats, Bankman-Fried claimed he had a better relationship with Republicans in Washington than the public realized. He is currently serving a 25-year sentence at Brooklyn’s Metropolitan Detention Center, where he mostly eats rice and beans and has had no contact with former FTX employees.

Sorry for those colleagues who collaborated with prosecutors, he maintained that the majority had no choice but to comply. His attorneys appealed, and his parents are said to be pursuing a potential presidential pardon by Donald Trump.

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The 2022 FTX collapse led to multiple convictions, with Bankman-Fried now awaiting the outcome of his appeal as legal processes continue.

TRM Labs Report: ISKP Uses Monero (XMR) for Crypto Fundraising, Highlights Shift in Terror Financing

TRM Labs finds ISKP using Monero (XMR) for fundraising. Crypto crime fell 24%, but privacy coins remain a challenge!


San Francisco-based blockchain intel firm TRM Labs, recognized by the World Economic Forum, just dropped its “2025 Crypto Crime Report,” revealing how the Islamic State Khorasan Province (ISKP) is using Monero (XMR) to collect donations.

ISKP, which gained prominence after the U.S. withdrawal from Afghanistan, has been traced to have fundraising networks in India. Its official media outlet, Voice of Khorasan, has been actively encouraging Monero donations. TRM Labs’ report says ISKP prefers Monero due to its privacy features, which make transactions hard to track.

Although illegal cryptocurrency transactions declined 24% in the past year, criminals are catching on. Chainalysis reports highlight that crime involving stablecoins increased 63% in the past year, as malicious actors shift away from volatile assets and into more stable digital currencies.

Terrorism-related networks are also using unidentified wallets, mixers, and fake KYC proofs to avoid law enforcement. Monero’s anonymity is also making it a tool of choice for criminal finance, but its volatility could push criminals towards stablecoins in the near future.

As security is being increased, both criminals and law enforcement are evolving their tactics in the cat-and-mouse game of crypto crime.

Also Read: FAFO Memecoins Take Over Pump.Fun After Elon Musk’s Tweet

Bybit Hacker Launders $1.4B in Record Time, Security Experts Race to Recover Funds

Bybit’s hacker laundered $1.4B in 10 days via THORChain. Experts suspect Lazarus Group. Security firms still tracking stolen funds.



The hacker behind the biggest crypto theft ever just pulled off the impossible—laundering all $1.4 billion worth of stolen funds in just 10 days. The exploit, which happened on February 21, saw over 500,000 ETH vanish from Bybit. The attacker used THORChain, a decentralized exchange that allows seamless crypto swaps without centralized oversight.

Blockchain security firm Lookonchain confirmed that 499,395 ETH ($1.04B at today’s prices) has been fully laundered. The original theft was $1.4B, but due to Ethereum’s price drop from $2,839 to $2,067, the stolen funds’ value also decreased.

Experts believe North Korea’s Lazarus Group is behind the attack. South Korea even sanctioned 15 North Koreans for funding nuclear weapons through crypto hacks. Despite advanced laundering techniques, security firms think they might still track some stolen funds.

Bybit moved fast, replacing all $1.4B by February 24, assuring users that withdrawals remained unaffected. CEO Ben Zhou stated that 77% of the funds are still trackable, but over $280M is completely gone.

Crypto firms are now pushing for better security, with off-chain transaction validation emerging as a potential fix to stop future hacks before they happen.

Also Read: White House and Lawmakers Push Back Against IRS DeFi Broker Rule

Football Legend Ronaldinho Teases Crypto Project Amid Scam Concerns

Summary: Brazilian football icon Ronaldinho warned off users from imposter meme coins being traded in his name and suggested a big crypto-related revelation. His post is well-timed as meme coins lose appeal, with investors gravitating toward utility-based altcoins.

Cryptocurrency analyst Michael van de Poppe, nonetheless, criticized the move, asking Ronaldinho to put efforts toward safeguarding investors rather than coming up with a meme coin.Others worry that whoever helps him create a token could exploit his reputation. These concerns aren’t unfounded—Ronaldinho was previously linked to a crypto scam.

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Celebrity-backed meme coins often fail. Tokens tied to figures like Trump, Iggy Azalea, and Andrew Tate have dropped over 80%, and 97% of meme coins eventually become worthless. Even Binance’s former CEO has warned against them, calling them harmful to crypto’s reputation.

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Despite the risks, meme coins remain part of the industry, and the SEC recently clarified they aren’t securities. Whether Ronaldinho’s project will succeed or fade like many others remains to be seen.

Bybit Hacker Moves $605M ETH—THORChain Under Fire as Crypto Heist Sparks Chaos

Bybit hacker launders $605M ETH via THORChain. FBI confirms Lazarus Group’s role. Devs quit, crackdown incoming, crypto world on edge.

The Bybit hacker is moving fast, already laundering $605M ETH (54% of stolen funds) through THORChain, a decentralized swap protocol now facing major heat. The $1.5B Bybit hack on Feb. 21 is officially the biggest crypto heist ever, with blockchain sleuths confirming North Korea’s Lazarus Group is behind it.

THORChain’s swap volume soared past $1B after the hack, but backlash came fast. A vote to block Lazarus-linked transactions got overturned, leading to core dev “Pluto” quitting and validator TCB threatening to leave if nothing changes.

Meanwhile, the FBI is stepping in, urging exchanges and validators to cut off Lazarus-linked wallets. But THORChain’s founder John-Paul Thorbjornsen says the protocol isn’t at fault, claiming no sanctioned wallets have interacted with it and blocking funds isn’t realistic.


The hacker remains with $514M ETH, and unless a change of circumstances occurs, they can continue sending money anonymously. This hack also points to an underlying issue—bad actors have the ability to take advantage of decentralized platforms since regulators are playing catch-up. Some fear that this will cause governments to squeeze the crypto tighter, especially privacy-focused platforms.

Crypto’s paying attention. Whatever happens next may reshape the landscape.

Also Read: Trade Anything, But Never Your Bitcoin – Michael Saylor

FBI Links North Korea to Record-Breaking $1.5 Billion ByBit Hack

Summary: The FBI blamed North Korea’s Lazarus Group for orchestrating the record $1.5 billion ByBit crypto exchange hack. The money was reportedly traded for Bitcoin and other cryptocurrency, with the potential that it will be laundered into fiat.

The FBI officially attributed the hacking of ByBit’s $1.5 billion cyber theft last month to North Korea’s Lazarus Group. In its official statement, the agency spelled out how pilfered assets were laundered through thousands of blockchain addresses by hackers, or “TraderTraitor.”.

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ByBit CEO Ben Zhou confirmed on X that the attack targeted the exchange’s ether cold wallet, leaving all other wallets unaffected and withdrawals functioning as usual. Despite the massive breach, the platform’s total assets remain at $5.3 billion.

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Crypto entrepreneur Mario Nawfal called the ByBit hack the largest crypto heist in history. With North Korean cyber threats escalating, global authorities are intensifying efforts to combat digital asset theft.

DOJ Cracks Down on $LIBRA Crypto Scam as Investors Suffer Huge Losses

DOJ investigates $LIBRA scam after investors lost up to $107M. Key players, including Hayden Davis, are under fire. Even Argentina’s president got dragged in.



The $LIBRA memecoin crash is blowing up, and the DOJ is now on the case. The crypto project, which left thousands of investors across the US, Argentina, and beyond in the dust, is being investigated as a massive scam. Investors are looking at losses between $87 million and $107 million, and criminal charges are on the table.

At the center of it all is Hayden Mark Davis, accused of running the whole operation. Other figures like Julian Peh from Singapore, Mauricio Novelli from Argentina, and Manuel Terrones Godoy (linked to Argentina and Spain) are also under investigation.

It all became worse when Argentine President Javier Milei promoted $LIBRA on social media before the crash and later disassociated himself from it. He even went ahead to call crypto investments gambling. His action has brought forth legal complaints and impeachment demands.

Meanwhile, Davis has gone off the grid in Texas after receiving threats, but not before admitting in interviews that he manipulated $LIBRA’s price and kept investors’ cash—except for one refund.

The case is under the DOJ’s Fraud Section, but if the evidence piles up, we could see the FBI and SEC get involved. With more than 200 investors hoping to get their money back, this could become one of the biggest crypto scandals in years.

Also Read: U.S. Recovers $31M From Uranium Finance Hack, But Many Questions Remain

Ethereum Crashes to $2,300 but Analysts See a Massive Rally Ahead

Summary: Ethereum’s price fell to $2,300, a 13% depreciation within a 24-hour period. This decline did not deter experts, though, who think it may revert to $8,000 or even $10,000 within the coming months.

Ethereum’s price was severely hurt and went to $2,300 as Bitcoin dipped below the $90,000 mark upon the United States weekly market open. The quick dip, during which ETH decreased over 13% in just a single day, has stunned traders.

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According to CoinMarketCap, ETH is now trading at about $2,420 after going as low as $2,330 earlier in the day. Although Ethereum hasn’t been able to hit new highs, unlike Bitcoin and some of the world’s leading cryptos that enjoyed record-breaking price rallies late in 2024 and early in 2025, market sentiment has slowly been becoming more positive.

Some analysts believe Ethereum is set to recover well, with some calling for a rally to $8,000. Some traders even foresee ETH bursting past $10,000, cementing its status as a leading player in the DeFi space.

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Now, Ethereum is attempting to recover from its recent downfall, trending against the $2,600 to $2,800 level. But the most important job is to break the $3,000 resistance line before it can sustain with the rest of the market rally.

CBI Cracks Down on GainBitcoin Scam, Raids 60+ Locations Across India

Summary: India’s Central Bureau of Investigation (CBI) is conducting massive raids in various cities to unmask the whole magnitude of GainBitcoin scam. The raid is for tracking robbed money and putting the culprits in the dock.

The CBI is raiding more than 60 locations in India as part of its probe into the GainBitcoin scam, a Ponzi scam that defrauded thousands of investors. Raids are being carried out in major cities like Delhi NCR, Pune, Chandigarh, and Bengaluru against those who have indulged in financial fraud and money laundering.

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GainBitcoin was founded 10 years ago by Amit Bhardwaj, who has since passed away, and his brother Ajay Bhardwaj. It lured investors with promises of 10% monthly Bitcoin returns through so-called cloud mining contracts. The scheme followed a multi-level marketing (MLM) model, where payouts relied on recruiting new investors. Initially, participants received Bitcoin, but as the operation began to collapse 8 years ago, payouts were switched to an in-house cryptocurrency called MCAP, which had little to no value, leaving investors with heavy losses.

As multiple fraud cases piled up across different states, the Supreme Court of India directed the CBI to investigate. The agency is now working to trace the stolen funds, including those transferred overseas, and identify everyone involved.

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During the searches, investigators seized cryptocurrency wallets, critical digital evidence, and email records stored on cloud platforms. The CBI has stated that the investigation will continue until all those responsible are brought to justice.

WazirX Moves ₹606 Crore Out of Bybit After Hack—Without Telling Anyone

Summary: After the massive Bybit hack that wiped out $1.5 billion, most exchanges reassured users their funds were safe. But WazirX? They stayed completely silent. Even worse, they secretly withdrew ₹606 crore from Bybit just a day after the attack, offering zero explanation.

The Bybit hack on February 21, 2025, was one of the biggest exchange breaches ever, draining over 400,000 ETH. While most exchanges addressed user concerns, WazirX chose a different path—silence. Then, just 24 hours after the hack, they quietly moved ₹606 crore out of Bybit, without a single update to their users.

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A year ago, WazirX users lost ₹2,000 crore in another major hack. To make matters worse, the exchange had transferred ₹606 crore of remaining user funds to Bybit—an unregistered exchange in India at the time. Now, after the Bybit hack, they’ve withdrawn their funds without saying a word, leaving users in the dark yet again.

Crypto analyst Aditya Singh exposed the transaction, sharing proof on X. He questioned why WazirX had funds in Bybit in the first place and why there’s still no proof of reserves. “Imagine if Bybit didn’t cover losses. What would’ve happened?” he wrote.

Meanwhile, CoinDCX and CoinSwitch quickly reassured users they weren’t affected. Bybit itself restored withdrawals within two days. WazirX? No fixes, no statements, no transparency.

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Nischal Shetty, once a vocal advocate for decentralization, has gone silent. He’s focused on his Web3 projects while WazirX users are left stranded. Ask questions, and you might just get blocked.

This isn’t just bad management—it’s pure negligence. If WazirX truly cared, they would have addressed this long ago. Instead, they’re waiting for the noise to fade, hoping users stop asking questions. But the real question is: How much longer will WazirX ignore its users while pretending nothing happened?

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