The biggest crypto crimes of all time

From the ‘Cryptoqueen’ who scammed the world to China’s $4.1 billion ‘Ponzi bandits’, here’s a look at the most notorious heists that hit the world of crypto.

Crypto crime has seen billions of dollars worth of cash scooped up by hackers and scams – and for many, there is no way to get it back.

The US Sunreports Bitcoin and other digital currencies are all vulnerable to attack unless investors take belt and braces steps to keep their fortunes safe.

North Korean hackers, a pair of “billionaire” brothers and an infamous scammer known as the “Cryptoqueen” are behind some of the most notorious heists and thefts which have hit the burgeoning world of crypto.

Financial experts always urge users to invest wisely and safely should they decide to get involved in the often tumultuous world of the booming electronic cash.

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Ever since crypto first emerged it’s been on the target list for criminals. Picture: iStock

And with the currencies’ values rocketing over the last few years, hackers and fraudsters are believed to be more active to exploit the boom.

Atlas VPN estimates some $US10 million ($A14 million) in crypto is stolen every single day – and the crypto crime industry is worth billions.

The Sun Online can reveal these are some of the biggest and most extraordinary Bitcoin and crypto heists of all time.

Billionaire bros

Baees Cajee and his brother Ameer claim they are actually the victims.

Bitcoin traders Raees Cajee, 21, and is brother Ameer, 18, fled South Africa in April after telling investors their company, Africrypt, had been hacked and all its funds stolen.

The two have been accused of carrying out one of the biggest Bitcoin heists in history, making off with £2.5 billion ($A4.6 billion) of the crypto.

In an interview with the Wall Street Journal from a secret location, Raees categorically denied any wrongdoing and said they were forced to flee due to “death threats” from “organised crime syndicates”.

The brothers also claim their company never had £2.5 billion in Bitcoin and that no more than £3.6 million ($A6.7 million) had gone missing.

They’ve both promised to co-operate in future enquiries and are reportedly preparing a dossier that proves their innocence.

And the alleged rogue traders have now reportedly bought citizenship on the remote tropical paradise of Vanuatu.

The ‘cryptoqueen’

Dr Ruja Ignatova was behind of the biggest scams of all time – not just in crypto. Picture: OneLife website

Dr Ruja Ignatova persuaded millions to purchase her new crypto currency “OneCoin” – something which she dubbed the “Bitcoin Killer” in 2014.

She boasted it was faster, cheaper and more secure than its rival – with people from 175 countries signing up to get rich quick.

Despite the promises of riches however, OneCoin is believed to be a giant Ponzi scheme which sucked in some $US4 billion ($A5.6 billion) from unwitting customers.

With no blockchain set up – the digital ledger that acts as the foundation to manage crypto – the coin was worthless.

It is one of a number of failed crypto currencies – if it was ever meant to be a success.

The so-called “CryptoQueen” remains on the run and her brother Konstantin in 2019 pleaded guilty to fraud and money laundering in connection with the scheme.

Kim’s crypto crims

Kim Jong-un’s state backed hackers are believed to have stolen $2 billion in crypto. Picture: KCNA via KNS/AFP

North Korea is suspected to have carried out around $2 billion ($A 2.8 billion) worth of crypto hacks as it scoops up the coins to prop up Kim Jong-un’s failing state.

Kim’s hacker unit – known as the Lazarus Group – us suspected to have stolen $275 million (more than $A385 million) from cryptocurrency exchange KuCoin, in what was the biggest crypto crime of 2020.

Bitcoin, Ethereum and other coins were all snatched by the group, which is believed to funnel the cash back to the North Korean state.

Cyber crime is becoming a key part of Kim’s economy as he attempts to keep the money flowing so he can develop nuclear arms.

Chainalysis was able to attribute the KuCoin hack to the North Korean hacking group by looking at how the stolen funds were laundered – describing it as like finding “fingerprints”.

KuCoin has around six million registered users, and the attack highlights the risk of using digital exchanges to store your crypto.

Exchanges under siege

Coincheck were attacked by hackers – losing $52 million in crypto. Picture: Rodrigo Reyes Marin/AFLO/Alamy Live News

KuCoin is just one of many exchanges to have been breached by cyber criminals who consider them targets for a potentially major haul of treasure.

Japanese exchange Coincheck was breached to the tune of some $532 million (more than $A746 million) in 2018 in a suspected attack by Russian hackers who used malware to infect employees’ laptops.

And meanwhile Mt. Gox – a giant exchange once handling 70 per cent of all Bitcoin transactions – saw some 850,000 Bitcoins, now worth $3.2 billion ($A 4.4 billion), stolen in 2014.

The firm has been wrapped in legal proceedings ever since, and less than 200,000 of the coins have ever been recovered.

Meanwhile, Bitfnex saw 120,000 Bitcoin stolen in 2016, while NiceHash lost 4700 Bitcoin in 2017 and Binance lost 7000 coins in 2019.

ExpressVPN urges investors to “never” store their coins with an exchange, warning: “Bitcoin likely still will be around in five to ten years, but the exchange of your choice might not.”

Chinese Ponzi scheme

Mugshots released by the Chinese authorities of the suspected Ponzi scheme scammers.

China convicted the ringleaders of a gang who are believed to have defrauded investors out of $2.2 billion ($A3 billion) worth of Bitcoin and other crypto using the scam “PlusToken”.

Some 14 people were held over the scheme which urged users to hand over their crypto as a “joining fee”.

The platform had no actual function at all – and users’ money was simply used to make themselves rich.

Gang leaders reportedly sold off some of the crypto to buy themselves luxury cars and properties, reports Bloomberg.

Chinese authorities reportedly managed to recover around 200,000 Bitcoin and more than 800,000 Ethereum.

Beijing has been cracking down on the use and mining of crypto currencies, which has been linked to 2021’s wild fluctuations of the market’s value.

This story originally appeared in The US Sun and was reproduced here with permission