An example of a cryptocurrency scam is a Ponzi scheme disguised as a crypto investment platform.
Here’s how it typically works:
🧩 Example: “Crypto Investment Club” Scam
A fake online platform — let’s call it CryptoGainPro — claims to offer high returns (like 10% profit per week) if you invest in their special cryptocurrency trading system.
- Attraction phase:
- The scammers create a professional-looking website and social media pages.
- They post fake testimonials and show fake “proof” of profits.
- Influencers or bots promote it on YouTube, Telegram, or Twitter.
- Investment phase:
- You’re asked to send Bitcoin, Ethereum, or another crypto to their wallet.
- Initially, you may even receive small payouts to build trust.
- Collapse phase:
- When more people invest, the scammers use new investors’ money to pay old ones — a classic Ponzi scheme.
- Once enough funds are collected, the scammers shut down the website and disappear with all the crypto.
⚠️ Red Flags:
- Promises of guaranteed or unusually high returns
- No clear information about who runs the platform
- Requests to recruit others for “bonuses”
- Pressure to act quickly before a “limited offer” ends
📉 Real-world example:
In 2020, PlusToken, a cryptocurrency wallet app, promised investors large returns for deposits. It turned out to be a $2 billion Ponzi scheme affecting millions of people before collapsing.
