5 Biggest Crowdfunding Scams and Failures of All Time

In this article, we shall discuss the 5 biggest crowdfunding scams and failures of all time. To read our detailed analysis of the global crowdfunding sector in 2023, go directly and see 16 Biggest Crowdfunding Scams and Failures of All Time.

5. Ouya 

Amount Raised: $8.6M

Ouya was a new video game consoler that allowed its users to develop games using open-source coding. However, when people bought the console, the quality was incredibly subpar and there were no platform games launched with it. 

4. Coolest Cooler 

Amount Raised: $13.3M

The Coolest Cooler was a cooler that blended, stored cold beverages and had built in speakers. The company managed to accumulate more than $13,285,226 but the product lacked financial planning and the price it set initially was too low which is why the product failed. 

3. Pebble Time 

Amount Raised: $20.3M

Pebble Time was a water-resistant smartwatch that allowed its users to send voice messages. It had a battery life up to 7 days. However, soon after the customers received their watches, the company sold their watch to Fitbit, which is why customers were not able to function or update it. 

2. Star Citizen 

Amount Raised: $179M

One of the biggest crowdfunding scams of all time is the Star Citizen, which was purported to be a space adventure video game featuring first-person dogfights and a trading ecosystem. The developer of the game managed to gather $179 million for the game but has missed every release date of the game since 2012. 

1. JuicyFields’ Ponzi Scheme

Amount Raised: $800M 

According to an article by Forbes, the biggest crowdfunding scam of all time has to be the JuicyFields’ Ponzi Scheme of 2022. A cannabis investment platform called JuicyFields promised high returns to invest in cannabis plants and many investors joined the firm and invested in the platform. Recent investigations have since shown that the company may have scammed more than 500,000 investors. Although the dimensions of the fraud are still under investigation, estimates have suggested that the total scam valued at more than $800 million at minimum.

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