ICO Scam.

A fraudulent Initial Coin Offering in which the issuers raise cryptocurrency from investors based on false promises and disappear or collapse after the sale. It belongs to the Attacks & Threats category of cybersecurity.

A fraudulent Initial Coin Offering in which the issuers raise cryptocurrency from investors based on false promises and disappear or collapse after the sale.

An ICO is a crowdfunding mechanism in which a project sells newly issued tokens to early backers. In an ICO scam, the team uses fabricated whitepapers, fake teams, plagiarised code, or pyramid economics to attract investors, then exits with the funds or operates as an unregulated Ponzi. BitConnect (2016-2018) promised guaranteed daily returns through a non-existent trading bot and ended in a USD 2+ billion collapse and SEC and DOJ indictments. OneCoin, run by Ruja Ignatova, was a USD 4+ billion pyramid that lacked any blockchain. Defences include skepticism towards guaranteed returns, checking team identity and on-chain proof, regulator alerts (SEC, AMF, BaFin) and proof of audit by reputable firms.

Defences for ICO Scam typically combine technical controls and operational practices, as detailed in the full definition above.

Common alternative names include: Token sale fraud, Crypto exit scam.