Celebrity/Influencer scams related to crypto?

Answered at Jan 17, 2025

Celebrity and Influencer Crypto Scams

Cryptocurrency scams involving celebrities and influencers have become increasingly common. These scams often exploit the trust and admiration fans have for public figures. Here's a breakdown of how these scams work and some notable examples.

How Scams Operate

Fake Endorsements: Scammers create fake social media accounts or websites that appear to be endorsed by celebrities. They promise high returns on crypto investments.

Impersonation: Scammers impersonate celebrities to promote fake crypto giveaways. They ask followers to send a small amount of cryptocurrency to receive a larger amount in return.

Pump and Dump Schemes: Influencers promote a cryptocurrency to inflate its price. Once the price rises, they sell their holdings, leaving followers with worthless coins.

Notable Cases

  • Elon Musk Impersonations: Scammers have frequently used fake Elon Musk accounts to promote crypto scams. In 2021, these scams stole over $2 million from unsuspecting victims (source).

  • Kim Kardashian's Promotion: In 2022, Kim Kardashian faced criticism for promoting a cryptocurrency called EthereumMax. The promotion led to a lawsuit, claiming investors lost money due to misleading information (source).

  • Floyd Mayweather and DJ Khaled: Both were involved in promoting Centra Tech, a fraudulent ICO. They faced legal action and were fined by the SEC for failing to disclose payments received for their endorsements (source).

Protecting Yourself

  • Verify Sources: Always check the authenticity of endorsements. Official celebrity accounts usually have verified badges.

  • Research Thoroughly: Before investing, research the cryptocurrency and the people promoting it. Look for credible news sources and reviews.

  • Be Skeptical of Giveaways: Legitimate giveaways rarely require you to send money first. If it sounds too good to be true, it probably is.

Conclusion

Celebrity and influencer crypto scams prey on the trust of fans. By staying informed and cautious, you can protect yourself from falling victim to these schemes. Always verify information and be wary of offers that promise unrealistic returns.