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.

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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.”

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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.

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Nigeria cracks down on crypto romance scams, arrests nearly 800 scammers

Summary: Nigeria’s anti-graft agency busted a massive crypto scam operation in Lagos, arresting 792 suspects. The scammers used fake online romances to trick people into shady crypto “investments” and steal their cash.

A Hub of Crypto Heartbreaks

In what sounds like something straight out of a movie, Nigerian authorities raided a building in Victoria Island, Lagos, where nearly 800 scammers ran what’s called *crypto romance scams*. Their playbook? Pretend to fall in love with victims online, gain their trust, and then pressure them into “investing” in fake crypto projects. Once the cash rolled in, these scammers ghosted faster than a bad Tinder match.

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Global Targets, Sneaky Tactics

These scammers primarily targeted Americans, Canadians, Europeans, and even some Mexicans, luring them via WhatsApp, Instagram, and Telegram. The hustle started small, with victims paying “activation fees” as low as $35 to set up fake accounts. The raid revealed just how international this operation was 148 Chinese nationals, 40 Filipinos, and individuals from Kazakhstan, Pakistan, and Indonesia were caught.

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Seized Devices and Organized Crime Links

Wilson Uwujaren, spokesperson for Nigeria’s Economic and Financial Crimes Commission, confirmed that phones, laptops, and cars were seized. Authorities are now teaming up with international agencies to dig deeper into potential ties to organized crime. Stay alert love and crypto don’t always mix well.

Fake Uber Driver Busted for Swiping $300K in Crypto

Summary: A man from Arizona did something unforgivable as he disguised himself as an ordinary Uber driver but behind that mask he was a filthy thief who got caught red-handed after stealing over whopping $300,000 in crypto from unsuspecting innocent passengers.

Crypto Heist on Wheels

Scottsdale Police have arrested Nuruhussein Hussein, who’s now facing serious felony charges for theft, fraud, and money laundering. According to reports, he’d fake being an Uber driver, pick up victims, and casually ask to “check directions” or “connect the Uber app” on their phones. While the unsuspecting passengers handed him their devices, he’d quickly access their crypto wallets, swipe private keys, and transfer funds straight to his own account.

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High-Tech Trickery, Big-Time Losses

Hussein didn’t just stop at simple swipes he used advanced techniques to move the stolen crypto to untraceable wallets. Most victims didn’t even realize their money was gone until it was far too late. By the time they sobered up or checked their balances, the digital cash was long out of reach.

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Facing the Music

The scammer is now behind bars in Maricopa County Jail, and both police and the Secret Service are on his case. Hussein faces multiple charges of theft, fraud, and money laundering, with a court bond hearing set for December 18. Let this be a PSA: hold onto your phones, especially after a night out.

Pengu Token Airdrop: Could $20K Really Grow to $50K?

People are hyped over a Pudgy Penguin (PENGU) token farming hack claiming $20K in plushies could flip to $50K. But it’s all shaky math—actual NFT rewards might be worth $0.50, not $50. Plus, the refund trick raises red flags and ethical concerns. TL;DR: Risky move, probably not worth it.

Crypto Twitter’s buzzing about a controversial Pengu token (PENGU) farming trick that claims a $20K spend on Pudgy Penguin merch could turn into $50K. Sounds too good to be true? That’s because it probably is.

Here’s the deal: By buying 1,000 Pudgy plushies and figurines, you’d get linked NFTs that supposedly earn $50 each in the PENGU airdrop. Do the math—$50K in tokens for a $20K investment means a $30K profit, right? But there’s a massive catch. This plan assumes you can bulk-buy, scan all the QR codes, and return the items to Amazon without issues. Oh, and it also assumes the token value will actually be $50 per NFT. Spoiler: it won’t.

Crypto insiders say PENGU’s likely worth closer to $0.50 per NFT, slashing potential profits to nearly nothing. Plus, trying to game the system this way could hurt the Pudgy Penguin community, causing artificial demand and leaving legit buyers in the dust.

To make things messier, Pudgy boxes in some New York stores are already being tampered with—QR codes stolen! Instead of shady refund schemes, some suggest donating the toys to charity and keeping things ethical.

Bottom line: This hustle isn’t worth the risks. Don’t let FOMO lead you into a bad move.

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Ledger Wallet User Loses $2.5M in Bitcoin and NFTs to Phishing Scam

Summary: A Ledger wallet user has lost 10 Bitcoin and $1.5 million worth of NFTs after hackers exploited a phishing transaction from 2022. This incident highlights the importance of vigilance in securing crypto wallets and avoiding phishing traps.

The $2.5M Crypto Wipeout

A crypto user, known as “Anchor Drops” on X, shared their loss of 10 Bitcoin and $1.5 million in NFTs from their Ledger Nano S wallet. The attack was traced back to a phishing transaction they unknowingly approved in February 2022. The hacker stayed under the radar for nearly three years before draining the funds.

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How the Hack Proceeded

Blockchain security experts confirmed that the phishing transaction gave the hacker access to the user’s recovery phrase, allowing them to take control across multiple blockchains. Ethereum-based NFTs were targeted first, but the attacker also managed to drain Bitcoin holdings, leaving the community puzzled about how it happened.

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Staying Safe in Crypto

Ledger and blockchain experts stress the importance of reviewing token approvals and understanding wallet interactions. Phishing scams often rely on users overlooking small details. The takeaway? Be hyper-cautious with transactions and never share your recovery phrase—because even a hardware wallet can’t fix user mistakes.

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