You would think that most people who have made a little (or large) profit with Crypto trading would be a little more intelligent than the average Joe (sorry if your name is Joe, English figure of speech). Although this may be the case, after a successful few months trading many feel they are on a roll and have suddenly become invincible and could not possibly fall for a scam, but many do.
One cryptocurrency scam involved a fake ICO (initial coin offering). The equivalent of a company going public, an ICO occurs when a business first starts selling its cryptocurrency.
Most ICO scams use basic investment fraud by claiming to be backed by a successful company, although the company only exists on a self-hosted second-rate website. More advanced ICO scams may even pretend to be other, real cryptocurrency organizations to confuse buyers.
Bitcoin Savings and Trust was even more blatant: It started out as an ICO scam based on a simple Ponzi scheme, and then…kept going. Buyers were promised an incredible 30% return every month on their investment.
Over a quarter of a million Bitcoins were stolen in the scam. The man behind the scam, Trendon Shavers was imprisonment for just 18 months and fined $40,000,000.
On the day of his sentencing, the stolen Bitcoins were worth close to $100,000,000. Not a bad return on his 18 month investment.