Top 10 Companies the Government Charged for Crypto Scams in the Last 5 Years

These crypto scams practically shook the entire cryptocurrency market

Crypto scams are a part of the digital asset ecosystem. The rising number of crypto scams and frauds claiming to offer higher ROI gain the attention of profit-seeking investors. These fake crypto projects tend to claim unrealistically high returns, which garner a considerable number of participants. Scammers tend to publish ads on social media platforms like Facebook, Instagram, and Twitter, they generally ask investors to join their Whatsapp and Telegram communities, which mostly contain fake accounts that ask them to purchase certain cryptocurrencies based on a ‘popular’ post. Since the inception of cryptocurrencies, the government has charged several top crypto companies with scam lawsuits. Crypto scams tend to ravage the domain, making investors extremely worried about their investments. Here, we have mentioned some of the top crypto companies that have been charged by the government for crypto scams in the last 5 years.



The SEC recently charged 11 people, including a group of promoters known as the ‘Crypto Crusaders’, with over US$300 million global blockchain scam. The SEC announced that Forsage has been raising money from investors by asking them to recruit others. The scam possesses the perfect traits of being a dangerous crypto pyramid scheme.



The CEO of the blockchain company Titanium Blockchain Infrastructure Service, Michael Alan Stollery, has pleaded guilty to securities fraud for over a US$21 million crypto scam. The TBIS scam was one of the several dubious ICO platforms that offered a variety of supposedly trademarked services since it did not possess any pre-registered trademarks.



The SEC is currently investigating whether or not Coinbase Global Inc. is improperly letting Americans trade digital assets that should have been registered as securities. A Coinbase spokesperson commented that the company does not list securities on its platform, while the regulators have declined to comment on it. The investigation is still ongoing and is adversely impacting the crypto exchange.



A top US securities regulator sued the founder of the cryptocurrency exchange platform BitConnect over his alleged role in fraudulently raising about US$2 billion from thousands of retail investors. In another lawsuit in Manhattan federal court, the SEC charged promoter Glenn Arcaro and his Future Money Ltd for receiving over US$20 million in ‘referral commissions’ as BitConnect’s top US promoter.


Ormeus Global SA

US authorities filed criminal charges against two cryptocurrency executives, who also happened to be siblings. They were charged for defrauding retail investors out of millions of millions of dollars with a digital token known as the Ormeus Coin. The siblings used their multi-level marketing company, Ormeus Global SA, and spent millions of dollars on travel, real estate, and other personal expenses.



The crypto scam that took place within the Thodex company, did not do much to the reputation of the company, so much as it did to the CEO and Founder, Faruk FatihÖzer. The 27-year-old Turkish crypto exchange executive disappeared after withdrawing over US$2 billion worth of cryptocurrencies from the project. This case is among 90% of those robberies that entail the rug pull variety.



The Russian crypto company Finiko was run by the Instagram influencer Kirill Doronin and operated like a classic Ponzi scheme. Fumiko successfully encouraged thousands of Russian investors to invest in cryptos such as Bitcoin and Tether. The project then promised high monthly returns of up to 30% before shutting its doors and taking out all the funds.



AnubisDAO integrated the second-largest crypto scam of 2021. The scam involved over 13,000 ETH tokens that cost users over US$50 million at the current exchange rate of the cryptocurrency. The removal of over 13,000 ETH tokens caused quite a stir in the crypto community. In the wake of the scam, several investors were forced to face financial losses.



DeFi100 is a cryptocurrency project from India that scammed around US$32 million from its users. Even though, the project managers constantly denied all reports circulating on social media. They explained that its website had been hacked and alleged that the message, about scamming the platform’s users, was posted by the hackers themselves.


Uranium Finance

Automated market creation platform, Uranium Finance operated on Binance Smart Chain and reported that around US$50 million of its cryptocurrency deposits were stolen during the end of April through its Twitter.