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.

Crypto Scam Exposes Three Victims from Ottawa

Three Ottawa locals got scammed in a global crypto fraud. OPP froze $24M, traced wallets, but arrests are tricky abroad.

Three Ottawa folks just got hit by a massive global crypto scam, according to the Ottawa Police Service (OPS). The Ontario Provincial Police (OPP) stepped up with Project Atlas to fight crypto fraud, freezing $24M in fake losses and stopping scammers from stealing over $70M. But here’s the catch—no arrests yet because the culprits are abroad, outside Canadian jurisdiction.

Detective Constable John Armit explained how the OPP used blockchain tech to trace stolen crypto to shady wallets. But tracking down these scammers is tough since crypto is mostly anonymous. The cops followed the victims’ transactions on the public blockchain and flagged dodgy wallets to exchanges worldwide, saving future victims from falling for the same trap.

Turns out, scammers tricked people with fake platforms showing fake profits, luring them to invest more. When they tried withdrawing funds, they were slapped with a bogus “crypto tax.” One victim lost six figures, another $10K, but thankfully, one person got an early heads-up and dodged a huge loss.

Mike Bickerton from the OPP Cyber-Enabled Fraud Team warned that scammers are using crypto for global money laundering. His advice? Learn the red flags before diving into crypto investments. Stay sharp, folks—don’t get played!

You might like: Hong Kong Wants to Flex BTC Reserves: Crypto Glow-Up Incoming?

Scam Token Linked to Squid Game Tanks 99% on Base

A fake Squid Game token on Base crashed 99%, scamming investors with a pump-and-dump tied to show hype.

A new scam token tied to the hit show Squid Game just popped up on the Base blockchain—and it’s already a disaster. In under 9 hours, the token dropped a massive 99%, wiping out all its value. The whole thing was a pump-and-dump scam where the creator held most of the token supply, hyping it up to pump the price and then selling off at the top, leaving investors in the dust.

The token, called SQUID, had no actual connection to the show, even though scammers used the buzz from Squid Game Season 2 to make it look legit. The hype came at the perfect time, with the show’s latest episode featuring a character running a failed crypto project, adding fuel to the fire. Investors rushed in, but once the token hit its peak, it all came crashing down.

As of this writing, the token’s price is only $0.0111255, or almost nothing. The Squid Game storyline may have been used as a backdrop to give this scam the appearance of legitimacy, but it was something more sinister and merely a means for scammers to profit quickly while causing others to suffer significant losses.

You might like: Pig Butchering Scams Swipe $3.6B in 2024: Major L for Crypto

Pig Butchering Scams Swipe $3.6B in 2024: Major L for Crypto

Summary: Crypto took a massive hit in 2024, with scammers pulling off $3.6 billion in “pig butchering” schemes, mostly on Ethereum. These scams fooled people with fake investment promises, leaving wallets crying for help.



What’s the Deal with Pig Butchering?

Imagine scammers texting you and promoting a too good to be true gains and totally ignoring you after taking up the money. That’s pig butchering for you, with $3.6 billion stolen, mostly on Ethereum, this scam wasn’t just a headache it was a full-on migraine for crypto users.

YOU MIGHT ALSO LIKE: Russia Gears Up with AI to Take Down Crypto Crimes

Numbers That Make You Wanna Log Off

According to Web3 security squad Cyvers, over 150,000 shady wallet addresses and 800,000 sketchy transactions were linked to scams. And it wasn’t just pig butchering access control breaches were another villain, racking up 81% of all financial losses.

The Glow-Up After the Mess

Not all heroes wear capes, ZachXBT, who helped claw back $1.3 billion of stolen funds. But even with the wins, 2024 had its share of jaw-droppers like the WazirX and Radiant Capital hacks. With $760M lost in Q3 alone.

YOU MIGHT ALSO LIKE: Hamster DAO Greenlights Layer-2 Blockchain on TON

Russia Gears Up with AI to Take Down Crypto Crimes

Summary: Russia might have stopped crypto mining in some regions but Russia’s central bank is rolling out an AI-powered platform to sniff out shady crypto moves and illegal cash-outs, aiming to block unregulated OTC services and stop criminals in their tracks.

AI’s Coming for the Crypto Bad Guys

Russia is stepping up its game with a new AI system designed to outsmart illegal crypto operations. Teaming up with Rosfinmonitoring and other banks, the central bank wants to put a stop to sketchy transactions that exploit crypto-to-fiat OTC services. This platform will perform an act like a digital watchdog, tracking shady activity in real time and flagging accounts used for money laundering, drug trades, and unregulated crypto exchanges.

YOU MIGHT ALSO LIKE: Ukraine Claps Back at Russia’s Crypto Hustle with Sanctions

Farewell to Mules and Droppers

The AI system will target individuals known as ‘Mules’ and ‘Droppers’ who lend out their bank accounts and conduct shady stuff. Unlike old-school KYC systems that react to anonymous transactions, this platform will use real-time data and advanced threat profiling to assess risks account by account. It’s like taking KYC and putting it on steroids.

Big Problems, Bigger Solutions

Last year alone, $584 million was funneled through shady accounts, and current monitoring systems can’t keep up since they only focus on individual banks. To level up, Russia’s building a centralized database for better info-sharing across institutions. No launch date yet, but it’s clear Russia’s coming for those crypto criminals with AI leading the charge.

YOU MIGHT ALSO LIKE: Bitget Token (BGB) Soars 325% in a Month, Hits All-Time High of $6

South Korea and the US Squad Up to Fight North Korean Crypto Hackers

Summary: South Korea and the US are joining forces to clap back at North Korean hackers. With Lazarus Group pulling off billion-dollar heists, this partnership is all about locking down crypto platforms and hunting stolen funds.

Crypto Heists Meet Their Match

In a serious power move, South Korea and the US Department of Homeland Security have teamed up to kick crypto security into high gear. They’re throwing down until 2026 to cook up next-level tech that stops hackers dead in their tracks. This isn’t just about playing defense they’re also working on ways to trace stolen crypto and figure out how these digital thieves turn their loot into untraceable assets.

YOU MIGHT ALSO LIKE: MOODENG Token Pops 62% in 24 Hours After Vitalik’s Epic Donation

Lazarus Group: The OG Crypto Bandits

North Korea’s Lazarus Group is the ultimate villain squad, allegedly swiping $1.34 billion in crypto this year alone. From taking down WazirX to hitting Hyperliquid, they’ve been on a hacking spree. These funds allegedly bankroll North Korea’s nukes, which makes stopping them a major flex for global security.

Tornado Cash Drama

The hackers love using tools like Tornado Cash to vanish with their stolen bags. The US Treasury says it’s a laundering playground, but courts argue its smart contracts don’t belong to anyone. It’s a messy, high-stakes battle, but South Korea and the US are coming in hot to shut down the shady business.

YOU MIGHT ALSO LIKE: Pi Network Restores Password Recovery Option for Users

Argentina Seizes $3.5M in USDT Over Rainbowex Ponzi Drama

Summary:Argentina’s justice system just dropped the hammer on Rainbowex, a Ponzi scheme promising wild returns. Authorities froze $3.5 million in USDT and are chasing down suspects linked to the scam, which reportedly scammed thousands of investors in Buenos Aires.


$3.5M Wallet Freeze: Crypto Justice Goes Hard

Argentina’s Justice Department has swooped in and taken over a Tether (USDT) wallet holding $3.5 million. This is just the tip of the iceberg in a bigger takedown of Rainbowex, a Ponzi scheme promising unreal daily returns of up to 2%. Alongside the USDT, authorities froze multiple wallets and bank accounts tied to the scam, according to iProUp.

YOU MIGHT ALSO LIKE: MicroStrategy Bags 3,177 BTC, Boosts Yield by 0.72%

Big brains from Lemon (Argentina’s second-largest crypto exchange), Chainalysis, and Qlue helped trace the shady transactions and connect the dots. Their expert sleuthing gave investigators the crypto receipts they needed to act fast.


Raids, Arrests, and Sky-High Promises

The Rainbowex crackdown has already seen over 15 raids across Argentina, with at least four arrests made so far. The feds aren’t stopping there they’ve called in Interpol to track down key players in Malaysia who allegedly masterminded the scheme.

YOU MIGHT ALSO LIKE: Russia Hits Pause on Crypto Mining in 10 Regions

Rainbowex pitched insane returns, turning heads with promises of 1-2% daily gains nearly 3,500% annually. The scam reportedly hit tens of thousands in San Pedro, a town of 70,000. Locals now face financial chaos, while authorities race to clean up the mess.

North Korean Hackers Lose $458K in Failed ETH Trade

North Korean hackers lost nearly $458K in just 48 hours while trading on Hyperliquid, betting on Ethereum’s price rise. They deposited $476K but got wiped out when ETH dropped. This big loss shows how risky crypto can be, even for experienced hackers, and highlights DeFi’s potential for shady trades.



North Korea’s cyber group just got burned big time—losing almost half a million dollars on a risky Ethereum (ETH) trade. They deposited $476,489 on Hyperliquid, a decentralized exchange, betting ETH would rise when it was priced at $3,791.8. But the market flipped, and ETH dropped to $3,251.8, causing their position to get liquidated, leaving them with only $18,187.

This loss highlights the risky side of crypto, even for skilled hackers like North Korea’s Lazarus group, famous for cyberattacks and stealing funds from crypto platforms. Normally, they use these stolen funds to get around international sanctions, but this time, their bet backfired hard.

Hyperliquid, which allows ultra-fast and anonymous trades, is a decentralized exchange, and its involvement raises concerns about how DeFi platforms handle large and potentially suspicious trades. With platforms like these growing, there’s an increasing risk of illegal activities, like money laundering, slipping through the cracks.

Despite the loss, ETH is showing signs of recovery, and it’s a reminder that crypto trading is unpredictable, with both huge rewards and massive risks—even for hackers with years of experience. Let’s see if they learn from this, or go even harder next time.

You might like: Trump Picks Sriram Krishnan as Senior AI Policy Advisor

Two Cali Dudes Charged for $22M Crypto Scam

Summary: Gabriel Hay and Gavin Mayo are two 23 year olds who wanted to test the water and now are in such a deep trouble after allegedly scamming $22 million through rugpulls in NFT and crypto projects. They’re now facing serious federal charges and could spend decades in prison.

The Scammy Duo

Hay and Mayo, both from sunny Southern California, ran multiple NFT and crypto projects from 2021 to 2024, like Vault of Gems, Faceless, and MoonPortal. They hyped these projects as game-changers with epic marketing and fake promises of long-term value. But as soon as the cash came in, they yeeted out, leaving their investors with empty wallets and dashed dreams.

YOU MIGHT ALSO LIKE: Hyperliquid DEX Becomes the Latest Target for North Korean Hackers

Vault of Lies

Their Vault of Gems project was a standout scam. They claimed it would be “the first NFT pegged to a hard asset,” but surprise there was no “gem” to back it up. Instead of delivering on their promises, they straight-up abandoned ship after collecting millions. It’s like selling a golden ticket to nowhere.

Whistleblower Woes

When someone tried to call them out for their shady Faceless NFT project, these guys allegedly went full villain mode. Prosecutors say they harassed the whistleblower and even their family, adding emotional damage to their list of crimes.

YOU MIGHT ALSO LIKE: VanEck Claims Bitcoin Reserve Could Erase $42 Trillion in U.S. Debt

What’s Next

Now facing six federal charges, Hay and Mayo could be looking at 20 years in prison for each fraud count. Looks like their “crypto empire” dreams just turned into a courtroom nightmare.

Hawk Tuah Girl Finally Speaks Out on $HAWK Token Drama

Summary: Hailey Welch who’s widely and by widely I mean worldwide known as “Hwak Tuah Girl” has finally spoken after the $HAWK token scandal left investors fuming. The token, hyped up by Welch’s massive fanbase, crashed hard minutes after launch, sparking a class-action lawsuit. Investors accuse the project’s team of pulling a classic “rug pull,” leaving them with empty wallets and shattered trust. Welch, though not officially named in the lawsuit, took to Twitter to clear the air and address her fans.

What Went Down?

$HAWK launched on December 4 with a bang, skyrocketing to a $490 million market cap, thanks to the buzz from Welch’s loyal followers. But the hype didn’t last just 20 minutes in, the token tanked to $41 million. Holders claim the creators dumped a huge chunk of the coin, sending its value into a free fall.

YOU MIGHT ALSO LIKE: Bitcoin to the Rescue? Trump’s Wild $35 Trillion Debt Plan

The lawsuit targets the Tuah The Moon Foundation, OverHere Ltd., and Alex Larson Schultz, one of the token’s big promoters. It alleges that $HAWK was sold as an unregistered security and claims the team used Welch’s clout to bait investors into a financial trap.

Welch’s Side of the Story

Addressing the controversy, Welch tweeted: “This is serious, and I want to say sorry to anyone affected. I’m working with legal teams to figure this out and make things right.” She also told investors to hit up the law firms handling the case for help.

The Bigger Picture

The $HAWK presale raised $2.8 million, but when the token went live, things spiraled fast. Welch’s spokesperson said she had zero control over the project, adding, “She just got a sponsorship fee and wasn’t involved in running the coin.”

YOU MIGHT ALSO LIKE: CBI Uncovers Crypto Scam Schemes Targeting Seniors in the US and Canada

This whole mess is a wake-up call for anyone jumping into celeb-backed crypto projects. It’s a reminder that just because your fave is hyping it doesn’t mean it’s a solid bet.

CBI Uncovers Crypto Scam Schemes Targeting Seniors in the US and Canada

A cryptocurrency fraud involving seniors got three individuals behind bars in Delhi-NCR. They were able to steal more than $30 million worth of Bitcoin by posing as tech support and law enforcement. Their job was to defraud individuals of their money by setting up phony call centers. Additionally, a Dubai-based partner assisted in turning the cryptocurrency into cash.

Three scammers got busted in Delhi-NCR for running a massive crypto scam. They targeted older people in the US and Canada. So basically, they set up fake call centers and pretended to be cops, tech support, and even companies like Amazon and Microsoft, convincing victims to send over $30 million in Bitcoin.

The crew, led by Tushar Kharbanda, Gaurav Malik, and Ankit Jain, pressured seniors into transferring big amounts of money through Bitcoin ATMs. Jain was in charge of managing the stolen crypto and converting it into cash through a partner in Dubai.

They hired over 150 tele-callers to act as fake law enforcement officers, and even went as far as pretending to be the Royal Canadian Mounted Police (RCMP). Victims, scared they were involved in illegal activities, transferred huge sums in Bitcoin. In one case, they sent over 93K Canadian Dollars.

The CBI took action after getting a tip from RCMP. Their base got raided and the scammers’ locations and finding devices with scripts for other fraud schemes were collected. This bust shows how dangerous crypto scams are becoming, especially for vulnerable older people.

Also Read: Fake Uber Driver Caught Stealing $300K in Crypto

Exit mobile version