The Dark Side of Crypto's Spotlight

While the cryptocurrency market continues attracting global investors, recent investigations reveal troubling patterns among some high-profile projects. Blockchain investigator ZachXBT has exposed multiple questionable sponsors of Token2049, one of crypto's premier events, raising concerns about due diligence in the industry.

When Red Flags Go Unnoticed

The crypto space has witnessed several projects leverage event sponsorships to gain undeserved credibility. Two notorious examples include:

• JPEX: After paying $70,000 for Token2049 platinum sponsorship in 2023, the exchange disappeared when Hong Kong regulators exposed its unlicensed operations, leaving investors with 【$128 million】 in losses

• HyperVerse: This project hosted extravagant yacht parties before being exposed as a 【$1.89 billion】 Ponzi scheme by U.S. regulators

Five Questionable Projects Under Scrutiny

ZachXBT's investigation identified several current Token2049 sponsors with problematic backgrounds:

Spacecoin's Satellite Claims

The DePIN project promises global 5G coverage through satellites but provides no verifiable launch documentation or audit reports. ——"Their claims don't survive basic technical scrutiny,"—— noted one blockchain engineer.

JuCoin's Regulatory Gray Area

This Singapore-based exchange has undergone multiple rebrands while operating without licenses in major markets. Despite applying for Taiwan registration, its lack of oversight in the U.S. and EU raises compliance questions.

Weex's Anonymous Trading

The futures platform offers bonus incentives but faces user complaints about frozen accounts and sudden KYC demands. Its unregulated status and opaque operations mirror patterns seen in previous crypto scams.

DWF's Market Manipulation Allegations

Accused of wash trading and involvement in the Vite Labs "rug pull," this market maker demonstrates how some entities exploit the crypto ecosystem's lack of transparency.

Bitunix's Compliance Issues

Currently under investigation by South Korea's FIU for unauthorized operations, this exchange highlights the risks of platforms registering in jurisdictions with lax oversight like Saint Vincent.

Protecting Yourself in Crypto's Wild West

Industry experts recommend these safeguards when evaluating projects:

• Verify all team members and audit claims (real audits name specific firms)

• Check trading volume across multiple platforms (single-exchange listings are risky)

• Research tokenomics (excessive insider allocations signal danger)

• Look beyond marketing (flashy events don't equal substance)

The Persistent Allure of High-Risk Crypto

Despite repeated scandals, shady projects continue attracting investors through:

• Speculative trading opportunities (volatility creates profit potential)

• Cult-like communities (devoted followers ignore red flags)

• Artificial hype cycles (orchestrated social media campaigns)

As one compliance officer noted: ——"The crypto space still confuses visibility with credibility—that's how scams thrive."——

【Industry data】 shows crypto scams drained $4.3 billion from investors in 2023 alone, proving due diligence remains crypto's most valuable skill.