By Refund Agency.
From rugged DeFi tokens to AI-powered phishing campaigns, the last two years have revealed a new generation of crypto scams—more advanced, more global, and more damaging than ever.
Between January 2023 and early 2024, cryptocurrency fraud losses exceeded £370 million in the UK alone, and the global figure is estimated to be more than £4.6 billion. These aren’t just statistics — they’re real people losing savings, pensions, and livelihoods.
At Refund Agency, we’ve helped countless victims navigate the road to recovery. Here are eight of the biggest and most destructive scams of the last two years, along with key takeaways for staying safe.
- BNB Chain “Rug Pull” Ecosystem – £110 million lost
Throughout 2023, the Binance Smart Chain (now known as BNB Chain) saw a wave of rug pulls and fake tokens, including Fintoch, Freedom Protocol, and BNB King. These projects mimicked legitimate DeFi platforms, attracting investor funds before disappearing overnight.
In total, losses across these projects exceeded £110 million, according to SlowMist and CertiK audits.
Lesson: High-yield DeFi platforms without transparency or verified code audits are prime scam targets.
- IcomTech & Forcount – MLM Collapse (UK Victims Impacted)
These two multi-level marketing crypto platforms promised daily returns through fake mining and trading operations. Promoters aggressively recruited investors via WhatsApp and Telegram, targeting diaspora communities in the UK and Latin America.
By early 2023, both platforms had collapsed, with combined global losses over £180 million. Several operators were arrested in the U.S. and Brazil.
Lesson: Avoid platforms with guaranteed daily profits or recruitment-based income.
- BitForge.ai – AI Crypto Trading Scam
Capitalizing on the AI boom, BitForge.ai launched in mid-2023 as a crypto bot claiming to use machine learning for “zero-loss” trading. UK investors poured in money, many reporting aggressive upselling tactics and pressure to upgrade to premium tiers.
The platform vanished in December 2023, and it’s now under international investigation. Estimated losses: £65–80 million.
Lesson: “AI-powered trading” claims are the new bait — always demand transparency and licensing.
- HyperVerse (Rebranded as HyperNation)
Despite red flags in 2022, HyperVerse continued to scam investors well into 2023 by rebranding and shifting its strategy. Claiming to build a metaverse economy, the platform operated like a Ponzi scheme.
By mid-2023, withdrawals were frozen. New packages promoted in 2024 under HyperNation raised further alarm. Losses are now estimated at £1.2 billion globally.
Lesson: Rebranded scams often target new victims — stay alert to familiar patterns and fake CEOs.
- JPEX Exchange (Hong Kong)
The JPEX crypto exchange scandal shocked Asia in late 2023, with over 2,500 police complaints and losses exceeding £140 million. The platform operated without regulatory approval while promoting high-yield staking products.
Celebrity endorsements and event sponsorships built false trust, leading many into the scam. Arrests have been made, but most user funds remain missing.
Lesson: Always check whether an exchange is fully licensed in your region before depositing.
- Fintoch – DeFi Exit Scam Posing as Morgan Stanley Partner
Fintoch was a DeFi platform claiming ties to Morgan Stanley and promising 1% daily returns. It launched with flashy marketing and fake LinkedIn profiles.
In May 2023, the team pulled an exit scam, draining £26 million from users via cross-chain asset transfers. Investigations revealed the company was entirely fabricated.
Lesson: Always verify partnerships and leadership teams — fake affiliations are a classic red flag.
- Atomic Wallet Hack – Over £80 million stolen
In June 2023, Atomic Wallet, a widely used self-custody wallet, was compromised. Over 5,500 users across 45 countries lost access to their funds.
Investigators linked the breach to the Lazarus Group, a North Korea-affiliated cybercrime syndicate. Despite investigations, the funds remain unrecovered.
Lesson: Even non-custodial wallets can be vulnerable — use hardware wallets for high-value storage.
- FTX Fraud Trial & Fallout – Sentencing in 2024
Though the collapse began in 2022, FTX dominated headlines again in 2024 with the trial and sentencing of founder Sam Bankman-Fried.
- Convicted of seven counts of fraud and conspiracy in November 2023
- Sentenced to 25 years in March 2024
- Over £6.3 billion in customer losses are still under bankruptcy resolution
- Over $7.5 billion (£5.9 billion) in assets recovered as of Q1 2024
Lesson: Even the biggest platforms can fall — transparency, compliance, and asset segregation are key.
Crypto Scam Statistics: 2024 So Far
- UK losses to crypto fraud: £382 million (January 2023–March 2024)
- Average loss per victim: £11,230
- 64% of crypto scams in the UK originated via social media ads
- Most common scams: Impersonation fraud, fake investments, and wallet phishing
(Source: Action Fraud, Chainalysis, and UK Finance)
Have You Been Scammed? Here’s What to Do
If you believe you’ve been the victim of a crypto scam:
✅ Act fast:
- Change your passwords and enable 2FA
- Revoke app and browser permissions linked to your wallet
- Report the scam to Action Fraud (UK) or local authorities
✅ Contact Refund Agency:
We’ve helped thousands of victims recover funds from fake platforms, failed exchanges, and scam tokens. Our crypto recovery specialists use on-chain tracking and legal coordination to help you take action.
Our promise: No-win, no-fee service. If we don’t recover your funds, you don’t pay a thing.