Bitcoin sounds exciting, right? It’s all over the internet, and lots of people are talking about how much money they’ve made. But here’s the thing—scammers see the hype too. Since late 2020, around 7,000 people reported losing over $80 million to fake Bitcoin and crypto investment scams. On average, that’s about $1,900 lost per person. Ouch.
These scams are sneaky. Scammers hang out in online Bitcoin groups, acting like they’re just sharing helpful tips. Some might even say they found a “sure thing” and want to help you get in on it. But a lot of the time, it’s just a trick to steal your money. Sometimes they even ask you to bring in friends to keep the scam going.
So if someone’s rushing you to invest or promising big returns with no risk, stop and think. Bitcoin is real—but so are the risks.
When Bitcoin News Was Everywhere
Not long ago, Bitcoin News and crypto were the hottest thing. In early 2022, even the Super Bowl was filled with crypto ads. Celebrities like Tom Brady, Larry David, and Matt Damon were on TV hyping it up. Big names like FTX were putting their logos on stadiums. Crypto influencers were blowing up online, pulling in massive followings. It felt like everyone was getting rich—and if you weren’t in, you were missing out.
People saw Bitcoin as the future of money. It promised freedom from banks and direct transfers without a middleman. But unlike the U.S. dollar, crypto isn’t insured by the government. There are also barely any rules to protect you if something goes wrong.
Then came the crash. People lost savings, hope—and trust. One man, Curt Dell, said he lost over $200,000 in Bitcoin when a company called Celsius went bankrupt. “It robbed my family of so much potential,” he said.
Too Good to Be True? Probably Is
Not every crypto opportunity is real—some are just scams made to look legit. Fake websites promise fast cash through crypto investing or mining. They use high-tech words, cool-looking designs, and fake reviews to trick people. Many offer “investment tiers,” claiming the more money you put in, the more you’ll make. But when you try to take your money out, they ask for even more—and then disappear.
There are also “giveaway scams” where fake celebrity accounts (like Elon Musk impersonators) claim they’ll double your crypto if you send them some first. Sounds cool, right? But you never get anything back. People lost over $2 million to scams like this in just six months.
When the crypto market crashed, panic hit. Everyone tried to pull their money out at once—but some companies, like Celsius Network, collapsed under the pressure. Turns out, a lot of it was built on shaky ground.
The Bitcoin Dream That Turned Into a Nightmare
Celsius looked like the future of crypto. Launched in 2017 by Alex Mashinsky, it promised high returns—like a crypto bank, but “better.” You’d deposit your Bitcoin USD or other crypto, and earn big rewards just for holding it there. Sounds great, right? Millions thought so. At its peak, Celsius had 2 million users and was valued at $3 billion.
But in July, it all collapsed. Celsius filed for bankruptcy, and Mashinsky was later sued for allegedly misleading investors. People like Curt Dell, who lost over $200,000 in Bitcoin, are still hoping to get something back—but nobody knows if they will.
Then came the FTX crash. That company tried to buy Celsius, but it also went down fast. Its founder, Sam Bankman-Fried, was hit with fraud charges. These major crypto failures shook the industry—and now more people are asking: should the government step in to help protect everyday users from crypto scams?
Watch Out: Scams Are Everywhere in the Crypto World
Scammers will use any story to trick you into sending Bitcoin or other crypto. Sometimes, they pretend to be government officials or big companies. For example, people have told the FTC they put money into Bitcoin ATMs because scammers said they were from the Social Security office. Others lost money to fake Coinbase callers. Believe it or not, 14% of all reported scam losses now involve cryptocurrency.
Here’s how to stay safe:
- If someone promises guaranteed huge returns or says they’ll multiply your crypto, it’s a scam.
- Your crypto itself is the investment. You only make money if you sell it for more than you paid.
- Anyone who pressures you to pay with crypto—whether a caller, an online crush, or an organization—is probably trying to scam you.
We want you to be smart and careful. Don’t get caught up in FOMO. Think twice before putting your crypto at risk.
