Edited to avoid name shaming. The name marked in red is the scammer.
(The legitimacy of gold to crown trading): “Discussing or conducting any type of real-money trading is prohibited by ZOS TOS and Crown Exchanges on Discord. Only trade in-game items for other in-game items (all items must be tradeable from within ESO itself). ZOS has confirmed that trading gold for crown store items is 100% allowed…” – According to the ZoS ToS
Trading gold for crowns has been in practice the minute the feature was added into the game. It was a way for players to get the crown store items they wanted without themselves using real-life currency at the expense of someone else buying crowns and selling it to them. However, trading gold for crowns is not 100% safe, and it opens the door for scammers to make empty promises and to scam people off their gold.
What happened?
On July 9th, around 15 players (including myself) were scammed by a “trusted crown seller” by the name of “[removed to avoid breaking forum rules, will be known as "KM")" who USED to sell crowns and had a positive reputation . But as I gave him the gold, he traded me and then got gold from multiple other players before leaving. There were around 15 players that day that got robbed out of their gold (Estimated to be over 3m worth) for a promise of crowns that were never delivered. (As I stated before, he was considered a trusted seller within the game until July 9th, so most people that gave him gold trusted him.)
(Attatched below are screenshots of the victims that permitted me to post their screenshots. Parts of the chat are redacted to protect identity
^ Discord conversation between player, who is referred to as, Musical and KM, they chat both via Discord and in-game chat. After no crowns were delivered, Musical attempted to contact him, but he was blocked by him.

^ Another Discord conversation.

^ A group was formed to talk about how much the scammer scammed. About 8 of us were in the group at the time.

^ My personal “transaction.” I was going to buy the new ram mount for gold.

^ Happened a day later, July 10th. Another player attempted to buy off this man but was scammed.
After this encounter, about 10 people, myself included, joined a discord voice chat to talk about what happened. We all reported this scammer via the report system. Fast forward to July 10th, the next day, He was able to scam even more players!
Suggestions on how to solve the crown scamming issue:
1. A ”Pay 4 Gift system”. When giving a gift, there is the COD gold box that is seen in the mail system. If a player pays the COD they get the item, if the COD isn’t payed within a day, the crowns get refunded.
2. Buying “crown store items are physical inventory items” (Runeboxes) that can be sold and trade through guild traders and trade window.
3. Completely remove the crown gifting system. If players continue to get scammed and the scammers are able to run free.
Why am I making this a public forum post and not email Zenimax directly?
I did email Zenimax directly, I submitted multiple tickets, and I know others have as well but the scammer is still rampant, scamming players of their gold.
This post is intended to spread awareness and to protect players within the ESO community. This post may violate the “Name and Shame “community forum rule, but I believe the community's safety and the number of victims affected outweigh the rule.
TLDR: Scammers are running rampant
Thank you for reading. I have played this game since 2016 and I wish best for the community. I refuse to not speak up and post about this.