As crypto evolves with increased adoption and innovation, some people adopt it to generate profits through legitimate means. However, some evil eyes often lurk in the dense forest, seeking to exploit innocent investors. Travis Ford, CEO and Co-Founder of Wolf Capital Crypto Trading LLC, was recently sentenced to a 5-year imprisonment for an alleged $9.4 million crypto scam!
Now, I am not going into detail about what he did and how he lured investors; rather, this article focuses on why smart investors fall prey to crypto scams.
Travis Ford’s leading role in $9.4 million crypto scam
The US Department of Justice stated that Travis Ford played a major role in raising $9.4 million from 2,800 investors through a crypto investment scheme. He allegedly promised returns for investors, but his company’s core aim was to collect investor funds through fake promises.
As you may know, Wolf Capital CEO’s crypto scam is not a unique case. There are several other fraudulent cases where innocent investors are deeply targeted. So, my question is, why do investors become victims of crypto fraud?
A huge number of investors scammed in crypto
A survey published by ChainPlay & Storible in 2025 found that 83% of 2,100 crypto investors said that they were scammed or hacked. Another report shows, nearly 1.2 million people were scammed in 2024.
Now, coming straight to our discussion, investors may fall for crypto scams due to several significant reasons.
Exaggerated promises lure investors
In crypto, exaggerations and overhyped scenarios are very common. Phrases like “Invest now and earn 100X returns”, “Don’t miss this big chance”, and “Top investors are already in, don’t be the only one to be left out” are some of the commonly seen phrases that easily hook even smart or educated investors.
To note, some of these phrases are also used by legit blockchain projects as well. So, when you come across such captions, do not immediately assume they are misleading; instead, check their whitepapers and roadmaps.
FOMO that roams inside investor heads
Fear of Missing Out, or FOMO, is a well-discussed psychological characteristic of investors. Fake companies advertise investment schemes, especially when the bull cycle begins, everyone appears to be gaining profits, and this is the time when fraudsters come up with their fake alerts, forcing people to invest before the price goes exponentially high.
Feeling like an expert can be a big mistake
Yes, some investors have gained exposure in traditional markets and learned investment tactics. They may try to apply those same skills in the crypto industry. They often feel like experts, but that confidence is short-lived because they can be scammed easily due to a lack of knowledge about crypto.
Intense love for money means failure
People go crazy over money! The moment they hear that crypto makes them rich, they rush to invest without taking proper precautions. And, alas! Their money is now in the evil hands.
Scammers build relationships; Investors easily fall into them
You may have noticed that no fraudsters steal investor funds in a day or a week. They build a relationship with investors, chat with them daily, share personal stories, patiently listen to what investors say, give small rewards, and pretend to trade alongwith victims.
Protect yourself before peril
While crypto scammers rise on one side, it is the duty of investors and traders to do proper research before dipping their toes into crypto projects. All that glitters is not gold. Whatever projects you see at first sight may look legit; however, you need to be more intelligent to identify fake projects from legit ones.
If you are a smart investor, do not just go for the easiest methods to become rich; keep an eye out for illegitimate, fake, and scammy projects.
