The cryptocurrency industry has attracted ambitious, bold risk-takers, all lured by the promise of wealth. However, the thin line between ambition and greed has led some down a darker path.
The industry has witnessed numerous fraudsters orchestrating elaborate crypto scams, defrauding investors of billions through Ponzi schemes, failed exchanges, and fraudulent coin offerings. From fugitive masterminds to exchange operators turned criminals, the individuals behind these schemes have gained infamy for their audacity and deception.
Ruja Plamenova Ignatova
Ruja Plamenova Ignatova, known as the “Cryptoqueen,” is at the center of one of the largest crypto scams in history. Ignatova was born in Bulgaria and raised in Germany.
She graduated from Oxford University and initially pursued a successful career in finance. In 2014, she co-founded the cryptocurrency OneCoin with Karl Sebastian Greenwood. The operations were based in Sofia, Bulgaria.
OneCoin promised high returns for investors. Ignatova’s sales pitch was persuasive.
She convinced millions worldwide to invest in OneCoin. It operated through a multi-level marketing (MLM) scheme.
She claimed that OneCoin would be a revolutionary cryptocurrency that could compete with Bitcoin (BTC).
“OneCoin is supposed to be the Bitcoin killer. In two years, nobody will speak about Bitcoin anymore,” she told investors.
In 2015, Ignatova revealed that OneCoin was officially entering the US market. However, the following year, cracks started to appear as investors found it difficult to sell their OneCoins and recover their initial investments.
It was later revealed that OneCoin was a Ponzi scheme with no verifiable blockchain behind it, defrauding investors of over $4 billion globally. Legal documents showed that Ignatova and Greenwood were allegedly aware from the start that the project was a fraudulent venture.
“It might not be [something] really clean or that I normally work on or even can be proud of (except with you in private when we make the money) – but . . . I am especially good in this very borderline cases [sic], where the things become gray – and you as the magic sales machine – and me as someone who really can work with numbers, legal and back you up in a good and professional way – we could really make it big – like MLM meets bitch of wall street ;-)” Ignatova wrote to Greenwood.
On October 12, 2017, Ignatova was charged with fraud and money laundering. The authorities also issued a federal arrest warrant.
Nonetheless, she vanished shortly thereafter. Ignatova boarded a commercial flight from Sofia, Bulgaria, to Athens, Greece, and has not been seen since.
The FBI has placed Ignatova on its Ten Most Wanted Fugitives list and is offering up to $5 million reward for information leading to her capture. She also remains one of Europe’s most sought-after fugitives.
Meanwhile, in December 2022, Greenwood pleaded guilty to wire fraud and money laundering charges in connection with the scheme. Additionally, in April 2024, US District Judge Edgardo Ramos sentenced OneCoin’s former legal chief, Irina Dilkinska, to four years in prison.
Despite extensive media coverage and the massive scale of her fraud, Ignatova remains elusive in 2025.
Faruk Fatih Özer
Faruk Fatih Özer founded Thodex, a Turkish cryptocurrency exchange that became notorious for its massive crypto scam. Established in 2017, Thodex quickly grew to become one of Turkey’s largest crypto platforms.
In April 2021, the exchange abruptly shut down, with a message appearing on the Thodex website claiming the platform would be offline for four to five days. However, this was the beginning of a major crisis.
Over 400,000 users found themselves unable to access their accounts, with around $2 billion worth of cryptocurrencies locked in the platform.
Following the closure, Fatih Özer fled to Albania. Meanwhile, authorities arrested his sister Serap Özer, his brother Güven Özer, and four other senior employees. Moreover, they also detained around 83 people as part of the investigation.
Özer’s disappearance sparked a manhunt. He was caught in Albania in 2022 and later extradited to Turkey in 2023. In September 2023, Fatih Özer, along with his siblings, was sentenced to a combined 11,196 years in prison.
Nonetheless, in January 2025, the 22nd Criminal Chamber of the Istanbul Regional Court of Justice annulled part of the original decision. The court acquitted 16 defendants of the charge of “qualified fraud” due to a lack of evidence. It also ordered the release of four defendants.
However, not all defendants were freed. The court released Fatih Özer and his siblings from charges of “organizing and leading a criminal group,” but their detention continued on other charges.
Satish Kumbhani
Satish Kumbhani, the founder of BitConnect, masterminded a global Ponzi scheme that defrauded investors of $2.4 billion between 2016 and 2018. The DOJ, referencing court documents, said Kumbhani deceived investors about BitConnect’s “Lending Program.”
He and his partners promoted BitConnect’s proprietary technology, the “BitConnect Trading Bot” and “Volatility Software,” as tools that could guarantee big profits by trading on cryptocurrency market fluctuations.
However, BitConnect was actually a Ponzi scheme, using money from new investors to pay earlier ones. Kumbhani shut down the Lending Program after about a year.
He then told his promoters to manipulate the BitConnect Coin (BCC) price to make it look like there was real demand for it. Kumbhani and his partners also hid investor funds by mixing, cycling, and exchanging them through BitConnect’s wallets and various international exchanges.
On September 1, 2021, the US Securities and Exchange Commission (SEC) filed a lawsuit against BitConnect. The regulator alleged that BitConnect deceived retail investors. Furthermore, Glenn Arcaro, Head of BitConnect’s North American division, pleaded guilty to conspiracy to commit wire fraud in the 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.
“Kumbhani is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodity price manipulation, operation of an unlicensed money transmitting business, and conspiracy to commit international money laundering,” the statement read.
Meanwhile, in September 2022, the court sentenced Arcaro to 38 months in prison and ordered him to repay $17.6 million to victims from 40 countries.
The stories of Ruja Ignatova, Faruk Fatih Özer, and Satish Kumbhani illustrate the devastating impact of crypto scams, with billions lost and lives upended. These cases highlight the need for greater regulatory oversight, investor education, and international cooperation to combat fraud in the space.
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