9 Most Controversial Crypto Scams, Crashes & Hacks of 2024

The world of cryptocurrency promises wealth and innovation, but in 2024 it also delivered another reality: billions lost to scams, hacks, and rug pulls.

From fake airdrops to insider trading scandals, no one — from seasoned investors to crypto newcomers — was safe. High-profile names and major platforms were caught in the chaos, leaving victims out of pocket and wondering how they fell for these schemes.

How did the scams happen? And what can you do to avoid becoming a victim? Here are 2024’s biggest crypto disasters and the lessons we can learn from them.

Table of Contents Table of Contents

1. Key Takeaways
2. 9 Most Controversial Crypto Scams, Crashes & Hacks of 2024
3. Crypto Scams, Rug Pulls & Hacks: Dirty Tricks That Fool Millions
4. The Bottom Line
5. FAQs
6. References

Show Full Guide

Table of Contents

1. Key Takeaways
2. 9 Most Controversial Crypto Scams, Crashes & Hacks of 2024
3. Crypto Scams, Rug Pulls & Hacks: Dirty Tricks That Fool Millions
Show Full Guide
4. The Bottom Line
5. FAQs
6. References

9 Most Controversial Crypto Scams, Crashes & Hacks of 2024

9. The MetaMask Phishing Scam

Everyone using digital currencies needs a crypto wallet at some point. Which makes for an easy attack surface for scammers.

This particular scam used fake ads on Google Play to lead people to cloned wallet app pages that looked just like the real ones.

Users then entered their private keys or seed phrases, not realizing that the websites were clones and that they were unlocking access to their funds. As a result, their wallets were emptied.

This scam caused panic in the crypto community. MetaMask quickly issued warnings, and the security team worked hard to block the fake websites. Unfortunately, the scammers kept creating new sites to stay ahead.

8. DIO Token Pump-and-Dump

Jump Trading was accused of running a pump-and-dump scheme with the DIO token. The token was meant to be used for a gaming project, but the trading company allegedly used influencers to hype it up.

When the token’s value peaked, Jump Trading was accused of selling its holdings, causing the price to crash.

Everyday investors were left with tokens that were almost worthless, losing huge amounts of money.

Although Jump Trading returned the tokens to the developers at a much lower value, the damage was already done.

7. The XRP Airdrop Scam

Scammers took advantage of Ripple’s legal success in 2024 by creating a fake XRP airdrop.

Posing as Ripple’s CEO Brad Garlinghouse, they claimed to offer free XRP rewards. Victims were led to fake websites where they either sent XRP for “verification” or connected their wallets, giving scammers full access.

The recent court ruling has sparked a surge in excitement around Ripple.

Beware of scam Ripple accounts or fake executive accounts promoting "XRP Giveaways" or "XRP Airdrops". 🚨🚨🚨

Remember, Ripple and its executives will NEVER ask you to send funds anywhere. https://t.co/uGitnz71yn

— Ripple (@Ripple) July 14, 2023

Ripple tried to warn users and shut down the fake accounts, but the scam spread quickly through social media and platforms like YouTube. Many people lost their XRP, showing how scammers use trending news to fool even experienced investors.

6. DMM Bitcoin $308 Million Hack

In May 2024, Japanese crypto exchange DMM Bitcoin was hit by one of the biggest hacks of the year. North Korean hackers, believed to be part of the Lazarus Group, exploited weaknesses in how the exchange managed private keys – resulting in the theft of 4,502.9 Bitcoins (worth more than $400 million in December 2024).

The attack showed how DMM Bitcoin had failed to encrypt and store keys properly. The crypto exchange then couldn’t recover from the losses and decided to shut down operations in December 2024.

Customer accounts are being transferred to SBI VC Trade, with the process expected to finish by March 2025.

5. PlayDapp $290 Million Exploit

In February 2024, PlayDapp, a platform for crypto gaming and non-fungible tokens (NFTs), suffered a $290 million hack. Hackers exploited vulnerabilities in its smart contracts, allowing them to mint 1.79 billion PLA tokens. They also used compromised private keys to carry out the attack.

PlayDapp tried to negotiate with the hackers, offering a $1 million reward if the stolen assets were returned, but the attempt failed. On February 13, the platform had to suspend its PLA smart contract to limit further damage.

The PLA smart contract has been paused.
We kindly request the halt of transactions to conduct a snapshot for migration.
Please understand that we are doing everything to protect holders' assets, and we will continue to keep the community updated.

— PlayDapp (@playdapp_io) February 13, 2024

4. WazirX $235 Million Breach

In July 2024, Indian cryptocurrency exchange WazirX fell victim to a $235 million hack. Hackers targeted the platform’s multi-signature wallet, using a malicious smart contract to change the wallet’s settings and bypass security measures.

As soon as the breach was discovered, WazirX stopped trading activities and froze accounts to prevent further losses. Investigations revealed that insider help might have been involved, and one person was arrested in November 2024 for selling account details.

While WazirX is still working on recovering the stolen funds, withdrawals aren’t expected to resume until mid-2025.

3. JENNER Token Crash

Caitlyn Jenner’s memecoin, JENNER, launched in May 2024 with plenty of excitement but quickly turned into a disaster. The token’s value dropped sharply after accusations that collaborators sold off large amounts, causing a market crash.

Things got worse when Jenner relaunched the token on Ethereum, which made the original Solana-based token practically worthless.

In November 2024, angry investors filed a lawsuit, accusing Jenner of not being transparent about the project and failing to register the token with the US SEC. Many felt misled and left with serious losses.

The case is still ongoing, leaving investors waiting for justice.

2. JASON Meme Coin Fallout

Jason Derulo’s meme coin, called JASON, was launched and hyped by Derulo himself. He made bold promises with partnerships and a roadmap, but he went completely silent after July.

The coin’s value ended up dropping by 87%, with its market cap falling from $27 million to just $1.28 million. Critics accused Derulo of abandoning the coin after putting in so much effort to hype it up and getting people to invest.

Jason Derulo has not posted about his JASON token on X/Twitter since July.

Wonder what happened to:

“I am committed to this space long term. I want to see everyone win in our community, and I want to grow not just our family but all of crypto”

Yesterday Jason promoted… pic.twitter.com/i2llMM5tJl

— ZachXBT (@zachxbt) September 4, 2024

1. HAWK Token Collapse

Oh, Hawk Tuah Girl, how quickly things can go wrong. Hailey Welch, the viral sensation turned social media influencer, launched her memecoin, HAWK, at the start of December 2024.

The token started strong, reaching a $490 million market cap, but it all crashed within minutes, losing 95% of its value — leaving thousands of investors, often self-described as non-crypto fans of Hailey, in the dust.

According to reports, there were snipers who had bought large portions of the supply and then dumped it for huge profits, which led to accusations of insider trading.

Although Welch denied any wrongdoing, a lawsuit was filed against the creators, accusing them of hyping up the coin by using her popularity and of ignoring US securities laws.

I take this situation extremely seriously and want to address my fans, the investors who have been affected, and the broader community. I am fully cooperating with and am committed to assisting the legal team representing the individuals impacted, as well as to help uncover the…

— Haliey Welch (@HalieyWelchX) December 20, 2024

Crypto Scams, Rug Pulls & Hacks: Dirty Tricks That Fool Millions

According to the FTC, in 2024, the average person who fell victim to a crypto scam lost $5,400 — much more than the typical fraud loss for other payment methods (around $447).

But what are the differences between a scam, a rug pull and a hack? Here is a quick guide to the different ways that bad actors can extract money from crypto enthusiasts.

Crypto scams are tricks used to steal money or personal details from people in the cryptocurrency world. These scams come in different forms, like phishing attacks, pump-and-dump schemes, and fake airdrops.

Phishing happens when scammers send fake links or websites to get your private keys or seed phrases.

Rug pulls are a type of scam where developers create a crypto project, build hype to attract investors, and then suddenly abandon the project after taking all the funds from its liquidity pool. This leaves investors with worthless tokens and significant financial losses.

In 2024 alone, rug pulls caused $192.9 million in losses.

Solana is a popular platform for rug pulls because of its low fees and fast transaction speeds. These features make it easier for scammers to set up and execute their schemes quickly.

Memecoins are often the main targets of rug pulls. Since these tokens are usually speculative and have little real-world use, they attract investors hoping for quick profits, making them easy for scammers to exploit.

Similarly, Pump-and-dump schemes involve artificially increasing the price of a token, making it look valuable, and then selling it off suddenly, leaving others with losses. Fake airdrops promise free tokens, but instead, access your wallet to steal your funds.

Hacking can occur in pretty much every aspect of the digital sphere, not crypto alone, but where there is money on the table, hackers are usually not far behind.

In 2024, hackers managed to steal $2.2 billion in 303 separate crypto incidents — an increase of 21% compared to the previous year.

One of the most common methods involved stealing private keys, which made up 43.8% of the total losses. These keys are like the passwords to crypto wallets, so once they’re compromised, hackers can take everything.

The Bottom Line

2024 was a harsh reminder that the crypto world is still full of risks. Scams, hacks, and rug pulls wiped out billions of dollars, leaving countless investors out of pocket and wondering how they were fooled.

Want to protect yourself from falling victim to these schemes? Read our guide to learn how to spot the most common crypto scams and stay one step ahead.

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