Revealed: 10 Biggest ICO Scams Swindled $687.4 Million

• The ten most high-profile ICO scams stole a staggering $687,425,000
• Pincoin and iFan scam is believed to have affected 32,000 investors
• More than 150 scams are publicly identified with the number set to rise
• ICOs remain relatively popular with $20.1 billion invested across 789 ICOs in 2018 to date

Initial Coin Offerings are one of the most tempting investment options for those hoping to profit from the ever-evolving world of cryptocurrency. However, the lack of regulation has allowed ICO investors to become targets of sneaky schemes.

Though ICOs have snowballed, with more than 750 being invested in during 2018 alone, the number of scams has also steadily risen, with more victims of fraud falling prey to cryptocurrency criminals.

Following Satis Group’s revelation that approximately 80% of 2017 ICOs were identified scams, new data from Fortune Jack has found that just ten of the most high-profile ICO scams have swindled $687.4 million from unsuspecting investors.

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In fact, the notorious Pincoin and iFan scam stole $660 million, with an estimated 32,000 investors falling prey to the money-making plot from Modern Tech.

As cryptocurrency continues to dominate headlines, more investors are pouring cash into ICO schemes in the hope of turning a quick profit. And with more than 150 scams listed on popular website Deadcoins, it’s easy to see how inexperienced ISO investors are being suckered.

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The losses have become so prevalent that the US Securities and Exchange Commission (SEC) launched its own ISO scam in a bid to show investors how easy it is to set up such schemes.

The top ten most notorious ICO scams to date

Scam name	Amount of money scammed ($)
Pincoin and iFan	660,000,000
Plexcoin	15,000,000
Bitcard	5,000,000
Opair and Ebitz	2,900,000
Benebit	2,700,000
Bitconnect	700,000
Confido	375,000
REcoin and DRC	300,000
Ponzicoin	250,000
Karbon	200,000

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Despite the SEC warning that ICOs “bring an increased risk of fraud and manipulation” due to the lack of regulation, the number of ICOs as well as the amount invested has increased over the past year.

In 2017 $6,240,046,555 was raised across 371 ICOs. However, in 2018 a staggering $20,074,423,238 has been raised across 789 ICOs to date.

This reveals a 222% increase in the amount raised in 2018 so far, compared to the full year of 2017. Additionally, there is a 113% increase in the number of ICOs in 2018 so far compared to 2017.

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If Satis Group’s suggestion that almost 80% of 2017’s ICOs were identified scams is correct, 297 ICOs in 2017 may have been fraudulent. If this trend was to continue in 2018, 631 ICOs could be fraudulent.

Despite such shocking statistics, ICOs remain a relatively popular investment in 2018, with $20.1 billion being invested into ICOs so far.

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The amount invested in ICOs in 2018 to date

Month	Money invested ($)
January	1,985,750,821
February	1,660,013,613
March	4,173,112,271
April	1,268,948,460
May	1,985,596,961
June	5,778,213,703
July	809,577,207
August	989,375,043
September	1,423,835,159

So, what are the red flags that may alert you to an ISO scam? The following were present in the most high-profile incidents:

• Silence from companies when contacted by investors
• Lack of a whitepaper and inconsistencies on the ISO website
• Fake Linkedin Profiles of “the team” with stock images or stolen photos
• Any text humourous or otherwise outlining a scam
• Promise of fixed profit or guaranteed ROI

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