10 entries tagged “bitcoin”.
A Bitcoin-based global pyramid/Ponzi scheme run by Sergei Mavrodi — founder of the infamous 1990s Russian MMM scheme — that promised ~30% monthly returns by having members 'help' each other with Bitcoin 'donations.' Launched around 2015, it spread across 80+ countries before collapsing in 2016.
A Dubai-based MLM scheme that sold 'BTC packages' promising ~1% daily returns over 140 days plus referral commissions. In December 2017 the Texas State Securities Board issued an emergency cease-and-desist order alleging an unregistered, fraudulent securities offering; North American payouts stopped in early 2018 and the operation wound down.
An early Bitcoin Ponzi (2011–2012) run by Trendon Shavers ('pirateat40'), who promised up to 7% weekly returns and took in ~764,000 BTC. The SEC won a $40M+ judgment, and in 2016 Shavers was sentenced to 18 months — the first U.S. federal securities-fraud case involving Bitcoin.
A privacy-focused Bitcoin wallet and mixing service (Whirlpool, Ricochet) whose founders the U.S. DOJ charged in 2024 with running an unlicensed money-transmitting business. Prosecutors said it processed $2B+ in Bitcoin and laundered $100M+ in criminal proceeds; both founders pleaded guilty in 2025.
A Russia-based crypto Ponzi led by Instagram influencer Kirill Doronin that took in over $1.5B in Bitcoin from ~800,000+ deposits (Dec 2019–Aug 2021), promising up to 30% monthly returns. It collapsed in July 2021 when withdrawals stopped; Doronin and associates were arrested.
A UK-registered operation that the CFTC says fraudulently solicited at least 22,858 BTC (~$147M) from more than 1,000 customers in 2017 by falsely claiming expert trading and referral rewards. A U.S. court entered a default judgment against principal Benjamin Reynolds.
A 2016–2018 MLM scheme that the SEC says raised 82,000+ BTC (~$295M at the time) from 100,000+ investors on the false promise of a trading 'bot'. The SEC charged founder Douver Braga and promoters; Braga was extradited to the U.S. and faces criminal charges.
A South Africa-based operation that accepted only Bitcoin for a 'commodity pool' it claimed a bot traded. The CFTC called it the largest Bitcoin fraud it has charged — at least 29,421 BTC (~$1.7B) from 23,000+ people.
Once the dominant Bitcoin exchange, Tokyo-based Mt. Gox filed for bankruptcy in February 2014 after about 850,000 BTC (worth roughly $450M at the time) went missing. A security firm concluded most coins were stolen from its hot wallet over years.
On Aug 19, 2024, roughly 4,100 BTC (about $243M at the time) was stolen from a single creditor of the bankrupt lender Genesis through a social-engineering attack. ZachXBT traced the funds and identified three individuals; the case led to arrests and a U.S. DOJ indictment.
