Cryptocurrency: a digital frontier that has sparked debates worldwide. Is it the future of finance or a fleeting trend? These digital coins operate independently of governments and physical commodities, captivating enthusiasts while drawing scrutiny from nations wary of their spread. Their notorious volatility and vulnerability to exploitation set them apart from traditional currencies.
Here are ten unusual facts that highlight the polarizing world of cryptocurrency.
Mining Malware Destroys Smartphones
In 2017, security experts at Kaspersky Lab discovered malware known as Trojan.AndroidOS.Loapi. This malicious software could seize control of smartphones, forcing them to perform tasks like generating ad revenue, launching DDoS attacks, and most notably, mining cryptocurrency.
Cryptocurrency mining involves verifying blocks of crypto transactions. Miners receive crypto as a reward for their efforts, but the process demands substantial processing power, far beyond what a smartphone can handle. When Kaspersky Lab tested this malware, they found it caused the battery to deform in just 48 hours. Moreover, the malware was designed to resist deletion attempts, locking the screen and displaying intimidating messages. Experts recommended a factory reset as the most effective solution.[1]
Squid Game Crypto Turns Out to Be a Scam
Riding the wave of Netflix’s global hit, Squid Game, a cryptocurrency called SQUID coin emerged. This coin enticed users to pay for participation in an online game inspired by the show. It surged in value, reaching $2,856 within days.
However, its rise was short-lived. SQUID coin plummeted from thousands of dollars to less than a cent. The creators vanished, taking the website offline and restricting their Twitter account. Experts identified this as a “rug pull,” where the creators exchanged their coins for another currency, causing a crash. It’s estimated they made around $3.38 million from the scam.[2]
Government Mistake Sees Drug Dealers Paid Millions
In an ironic twist, three incarcerated drug dealers in Sweden became millionaires due to a bureaucratic blunder. They received $1.5 million in Bitcoin because prosecutors miscalculated the value of their digital earnings.
In 2018, Swedish police seized 36 Bitcoin from them. When the authorities decided to confiscate these earnings the following year, prosecutor Tove Kullberg converted the Bitcoin into Swedish krona. Unfortunately, this meant the state could only claim the value at that time—approximately $140,000. By the time the government auctioned off the Bitcoin two years later, its value had increased tenfold, resulting in the dealers receiving around 33 Bitcoin back from the state.[3]
The Rise of the Twitter Vigilantes
In the often-anonymous realm of cryptocurrency, online scams are widespread. As a result, vigilantes have emerged to track down crypto con artists and hold them accountable.
While professional software exists to aid law enforcement, these amateur sleuths often rely on hunches and anonymous tips. Instead of going through official channels, they publish their findings on Twitter, using accounts like Gabagool, Zach, and Sisyphus. One such vigilante, Gabagool, exposed exploitative behavior by Divergence Ventures, an investment company accused of using confidential information to manipulate the market. The ensuing online uproar forced the company to return millions of dollars in Ethereum.[4]
The Weird World of Altcoin Influencers
Kim Kardashian once promoted Ethereum Max on Instagram, leaving many puzzled. Ethereum Max is an altcoin—a more volatile cryptocurrency. Experts warn that many altcoins are scams akin to Ponzi schemes.
Across the internet, celebrities and influencers promote risky cryptocurrencies. In 2021, the gaming group FaZe Clan promoted BankSocial, causing a surge in its value followed by a crash. Consequently, FaZe Clan faced accusations of manipulating the value for personal gain and exploiting their fans.[5]
Mr. Goxx the Trading Hamster
Amidst the fraud and controversy, the story of Mr. Goxx offers a lighter note. In September 2021, this hamster gained fame for his surprisingly successful cryptocurrency trading.
Mr. Goxx, a hamster on Twitch, outperformed many professional investors. He would select a cryptocurrency via his “intention wheel” and then choose to buy or sell by running through tunnels. His owners, two German men, gave him approximately $400 to trade with, and within months, he achieved returns of nearly 20%, surpassing the FTSE 100, Dow Jones, and Berkshire Hathaway. Sadly, Mr. Goxx passed away soon after finding fame.[6]
China’s Crypto Crackdown
In May 2021, China announced a crackdown on cryptocurrency, with the People’s Bank of China urging banks and online payment channels to block crypto payments. While digital currencies remained legal, this made it harder for people in China to acquire them.
The Chinese government cited concerns that cryptocurrency trading speculation violated the safety of people’s property and disrupted economic order. This decision sent shockwaves through the market, causing Bitcoin to fall below $40,000, with other cryptocurrencies also declining. However, the Hong Kong Bitcoin Association downplayed the significance, noting that the People’s Bank of China has a history of banning Bitcoin periodically.[7]
The Elaborate CryptoEats Scam
In 2021, scammers defrauded investors of hundreds of thousands of dollars through CryptoEats, a fake takeaway delivery service seemingly poised to rival Deliveroo and Uber Eats.
CryptoEats claimed partnerships with major restaurants and promised fast deliveries paid with the EATS crypto token. However, it was a facade. The company launched with fanfare and then vanished, absconding with investor funds. Influencers who endorsed the company had to apologize for their involvement in the deception.[8]
The Bizarre Tale of the Poly Network Heist
The Poly Network heist unfolded like a saga due to the hacker’s unusual moral compass. Mr. White Hat stole $610 million in cryptocurrency by exploiting vulnerabilities in the Poly Network platform.
Poly Network asked the hacker to contact them to resolve the issue. Incredibly, Mr. White Hat began returning the stolen funds. He claimed his motive was to highlight the security flaw and distrust of the company. After locking $200 million in a separate account, Poly Network rewarded him with $500,000 for identifying the vulnerability. Ultimately, all $610 million was returned. Following this, Poly Network reportedly offered Mr. White Hat the role of Chief Security Advisor.[9]
The Mysterious Death of QuadrigaCX’s CEO
Gerald Cotten, CEO of QuadrigaCX, Canada’s largest cryptocurrency exchange, secured 115,000 accounts with a unique passphrase known only to him.
When Cotten died unexpectedly in December 2018, those accounts became inaccessible, sparking widespread speculation. Rumors of a faked death arose, alongside the mysterious disappearance of substantial amounts of Bitcoin. Investigations revealed a will filed shortly before his death, yet QuadrigaCX had no record of its assets. The events prompted investigations, podcasts, and endless speculation, yet the fate of those 115,000 accounts remains uncertain.[10]
These ten unusual facts reveal the unpredictable and often bizarre nature of the cryptocurrency world. From rogue malware to trading hamsters, the crypto landscape is filled with surprises, scams, and cautionary tales.
What do you think about these facts? Leave your comment below!
