The cryptocurrency industry attracted ambitious adventurers by promising wealth and success. However, the thin line between ambition and greed led some down a dark path.
The industry has witnessed numerous scammers leading sophisticated cryptocurrency frauds, stealing billions of dollars from investors through Ponzi schemes, failed exchanges, and fraudulent coin issuances. From fugitive masterminds to exchange operators turned criminals, those behind these scams gained notoriety for their audacity and deception.
Ruja Plamenova Ignatova
Known as the "Crypto Queen", Ruja Plamenova Ignatova is at the center of one of the largest cryptocurrency scams in history. Ignatova was born in Bulgaria and grew up in Germany.
She graduated from Oxford University and initially built a successful career in finance. In 2014, she co-founded the cryptocurrency OneCoin with Karl Sebastian Greenwood. The operation was based in Sofia, Bulgaria.
OneCoin promised high returns to investors. Ignatova's sales presentations were convincing.
She persuaded millions worldwide to invest in OneCoin. It was operated through a multi-level marketing (MLM) approach.
She claimed OneCoin would be an innovative cryptocurrency that could compete with Bitcoin (BTC).
"OneCoin is considered the cryptocurrency that will replace Bitcoin. In two years, no one will talk about Bitcoin," she told investors.
In 2015, Ignatova announced that OneCoin would officially enter the US market. However, the following year, cracks began to appear as investors struggled to sell OneCoin and recover their initial investments.
Later, it was revealed that OneCoin was a Ponzi scheme without a verifiable blockchain, having defrauded investors of over $4 billion globally. Legal documents suggest that Ignatova and Greenwood knew from the beginning that the project was a scam.
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On October 12, 2017, Ignatova was indicted for fraud and money laundering. Authorities also issued a federal arrest warrant.
However, she soon disappeared. Ignatova boarded a commercial flight from Sofia, Bulgaria to Athens, Greece, and has not been seen since.
The FBI has placed Ignatova on its top 10 most wanted list, offering up to $5 million for information leading to her arrest. She also remains one of the most wanted fugitives in Europe.
[The rest of the translation follows the same professional and accurate approach]However, in January 2025, the 22nd Criminal Division of the Istanbul Regional Court invalidated part of the original verdict. The court found 16 defendants not guilty of "specific fraud" due to insufficient evidence. It also ordered the release of four defendants.
However, not all defendants were released. The court released Faruk Fatih Ozer and his brothers from charges of "criminal organization and leadership," but they remained in custody on other charges.
Satish Kumbani
BitConnect's founder Satish Kumbani led a global Ponzi scheme that defrauded investors of $24 billion from 2016 to 2018. The Department of Justice cited court documents stating that Kumbani deceived investors about BitConnect's "loan program".
He and his partners promoted BitConnect's exclusive technology, "BitConnect Trading Bots" and "volatility software" as tools that could guarantee large profits by trading cryptocurrency market volatility.
However, BitConnect was actually a Ponzi scheme that paid previous investors with money from new investors. Kumbani terminated the loan program after about a year.
He subsequently instructed promoters to manipulate the BitConnect Coin (BCC) price to make it appear to have real demand. Kumbani and his partners also mixed, circulated, and exchanged investor funds through BitConnect's wallet and various international exchanges to hide them.
On September 1, 2021, the US Securities and Exchange Commission (SEC) filed a lawsuit against BitConnect. The regulatory authority claimed BitConnect deceived retail investors. Additionally, Glen Arcaro, BitConnect's North American head, pleaded guilty to wire fraud conspiracy in US District Court.
The BitConnect founder was indicted in February 2022 and faces multiple charges. If found guilty on all charges, he could face up to 70 years in prison.
"Kumbani was charged with wire fraud conspiracy, wire fraud, commodity price manipulation conspiracy, operating an unlicensed money transfer business, and international money laundering conspiracy," the statement read.
Meanwhile, in September 2022, the court sentenced Arcaro to 38 months in prison and ordered the return of $17.6 million to victims in 40 countries.
The stories of Luza Ignatova, Faruk Fatih Ozer, and Satish Kumbani demonstrate the destructive impact of cryptocurrency fraud. Billions of dollars were lost and lives were turned upside down. These cases highlight the need for more regulatory oversight, investor education, and international cooperation to prevent fraud.
