Top crypto scams of 2019Scammers prey on trader greed. With that said, here are some of the biggest crypto scams and hacks of 2019:
Japanese cryptocurrency exchange, BITpoint got hit the hardest in 2019 when a total of $28 million was stolen in July. About $19.3 million of the total amount was stolen from customers of the exchange. The remainder of the stolen funds belonged to the exchange itself. Amongst the stolen cryptos were Bitcoin, Ether, Litecoin, XRP and Bitcoin Cash. Fortunately, customers of the hacked exchange were reimbursed.
The “typosquatting” scam in the Netherlands and the UK saw cryptos to the value of $27 million stolen. More than 4 000 victims across 12 different countries fell for the scam. A fake online cryptocurrency exchange was created that allowed the scammers access to users’ Bitcoin wallets. Meanwhile, five men and one woman have been arrested in connection with the crime.
One of the world’s largest cryptocurrency exchanges, Binance, got hacked in May 2019 and $40 million worth of Bitcoin was stolen. The 7 000 Bitcoins amount to only 2% of the exchange’s holdings and user losses were covered by the exchange’s self-insurance fund, SAFU.
How to protect yourself against cryptocurrency scams
Avoid unreputable brokers, exchanges and walletsIf something sounds too good to be true, it usually is. If someone tries to lure you to a particular broker, exchange or wallet with promotional offers that sound too good to be true, be wary. Once you have registered on the site and deposited funds, it may become very difficult to withdraw funds or they might simply steal your money.
Then there is also the fake wallet app that users can download. Even though they are available in Google Play, do your own research before simply downloading anything to your phone. This counts for all brokers, exchanges and wallets. DYOR (Do Your Own Research).