YouTube star MrBeast isn’t the only famous name linked to the alleged crypto pump-and-dump scheme.
Crypto.news found at least nine other scenarios in which a celebrity or influencer promotes a coin to investors, but sells their holdings at an inflated price. The price of the digital asset subsequently crashed and other investors (mostly their fans) faced significant losses.
Most celebrity projects usually fail right after launch. But there are notable cases that consistently raise these alarm regulators and remind investors to do their research before following high-profile promotions. Here’s our starting list with Donaldson.
Mr. Monster
On Tuesday, MrBeast, whose real name is Jimmy Donaldson, allegedly made millions of dollars in profits from questionable crypto deals.
Experts from consulting firm Loock.io and blockchain analysts such as SomaXBT, who previously accused Donaldson of making $10 million in undervalued tokens, claim that MrBeast used his influence to profit from insider trading.
Donaldson, who has 320 million YouTube subscribers, is using his influence to promote tokens “only to later launch them,” according to a group of on-chain researchers.
Crypto isn’t the only thing Donaldson is promoting. The stunt video expert has also been known to hype food products like “Beast Burgers” and “Lunchly.” Observers examined the poor quality standards of both.
Logan Paul
Logan Paul, who partnered with MrBeast on Lunchly, is also a popular YouTuber known for controversial stunts and promoting products including his own energy drink brand Prime.
One of its most notable ideas involves CryptoZoo, a non-fungible token (NFT) game that allows players to purchase digital eggs that will hatch into animals. These NFTs can be traded or sold with the potential for players to make a profit.
But after initial sales and marketing, the project stalled, leaving many investors with effectively worthless NFTs.
Critics, including YouTuber Coffeezilla, accused Paul and his team of mismanaging the project and deceiving investors.
Paul later responded to the allegations, blaming outside developers for the problems and promising to address concerns even though the status of the project was controversial.
Kim Kardashian
A lawsuit accusing Kim Kardashian and other celebrities of supporting a crypto “pump and dump” scheme tied to EthereumMax (EMAX) was dismissed by a federal judge in late 2022.
Investors E! The reality star misled the public by promoting EMAX, a now nearly worthless cryptocurrency. The court found that the allegations did not meet the “high standards of pleading” required for securities fraud, meaning the evidence presented was insufficient to sustain the case.
This firing follows Kardashian’s previous settlement with the SEC; Kardashian agreed to pay a $1.26 million fine for failing to disclose that she was paid $250,000 to promote EMAX.
As part of the deal, it also agreed not to endorse any crypto products for three years.
Plaintiffs reserved the right to appeal, but the case underlined the legal and ethical complexities around influencer marketing in volatile markets like cryptocurrency
Floyd Mayweather
In 2022, regulators accused undefeated boxing champion Floyd Mayweather of failing to disclose payments to promote three initial coin offerings (ICOs), including a $100,000 payment from Centra Tech.
They claimed that he was used He used his social media platform to encourage his fans to participate in Centra’s ICO, stating that it would be launching soon and that they should purchase the tokens before they run out.
However, it was later revealed that Centra Tech was fraudulent. Founders Sohrab Sharma, Raymond Trapani and Robert Farkas were accused by regulators of defrauding investors by making false claims about partnerships with major companies such as Visa and MasterCard. Authorities also alleged that the company misled investors about the technology and viability of its debit card product.
Mayweather’s involvement drew significant criticism from ZachXBT, a popular blockchain researcher. ZachXBT cited several other cases, including the Kardashian-backed EthereumMax, where the fighter’s followers lost significant amounts of money after investing in a scam.
DJ Khalid
DJ Khaled, whose real name is Khaled Mohamed Khaled, also promoted Centra Tech on social media.
Like Mayweather, Khaled was accused of failing to disclose that they were paid to promote the ICO, which violated anti-tootry provisions.
As a result, Khaled settled with the US Securities and Exchange Commission (SEC) in 2018, paying a $152,725 fine (Mayweather paid over $600,000 in fines). This included disruption of earnings and additional penalties.
Khaled also agreed not to promote any securities for two years. This case marked one of the SEC’s first actions against celebrity endorsements in the crypto industry and set a precedent for transparency and accountability in such endorsements.
Soulja Boy
The rapper and social media influencer was charged by the SEC for allegedly promoting TRON (TRX) and BitTorrent (BTT) without disclosing that he was being paid.
Soulja Boy, along with other influencers, has faced a legal backlash as he continues to promote various coins and NFTs despite the risks.
jake paul
Logan Paul’s brother, YouTuber and boxer Jake Paul, is facing a lawsuit for allegedly promoting the cryptocurrency SafeMoon without disclosing his financial interests.
SafeMoon’s value dropped sharply after promotions from Paul and other celebrities.
It doesn’t end here. Another incident was Paul’s involvement with Save the Kids, a cryptocurrency project that claims to support charitable causes.
The project faced serious backlash and scrutiny when Paul and others allegedly promoted the token to inflate its price and then sold their holdings, resulting in a sharp drop in value, resulting in significant losses for investors.
Paul denied any wrongdoing.
Lindsay Lohan
In 2023, Lindsay Lohan was among many celebrities, including Jake Paul, who faced charges from the SEC for allegedly promoting TRX and BTT tokens from the Tron Foundation without proper disclosures.
The lawsuit emphasized that he and others were paid to approve these tokens.
However, Lohan frequently promoted crypto projects and NFT collectibles on social media. A spreadsheet leaked to social media by ZachXBT suggested the “Mean Girls” star regularly charges $25,000 for projects, or $20,000 for a retweet.
This led to unwelcome attention from the SEC, which accused him of boosting Justin Sun’s Tron and BitTorrent tokens.
He eventually settled the SEC charges and joined the likes of Ne-Yo and Akon by paying a total of $400,000.
Paul Pierce
The former NBA star promoted EthereumMax on social media in 2021 without disclosing his payment, like Kardashian and Mayweather. Pierce settled with the SEC in 2023 and paid a $1.4 million fine.
The lawsuit against these celebrities accused them of engaging in a pump-and-dump scheme in which they allegedly promoted EMAX to inflate its price and then sold off its assets, causing significant losses for retail investors attracted by their endorsements. While Pierce and his fellow supporters have denied any wrongdoing, the legal ramifications of their endorsements have highlighted concerns about celebrity influence in the crypto market.
The EMAX raid was part of a broader effort to investigate celebrity endorsements in the cryptocurrency space. This situation drew attention to the legal responsibilities of influencers when promoting financial products.
Andrew Tate
YouTuber Coffeezilla, known for exposing scams, has been publicly sparring with notorious misogynist Andrew Tate over the influencer’s changing stance on crypto.
Coffeezilla shared past clips of Tate, who once dismissed cryptocurrencies as worthless and claimed he would not exploit fans by launching the coins. Despite this, Tate has since promoted numerous meme coins, including “ROOST” and the “F Madonna token,” both of which lost significant value shortly after approval.
Coffeezilla also highlighted the “Real World Token” promotion tied to Tate’s online course, which resembles a pyramid scheme in which subscribers earn tokens representing dividends.
Tate, who was arrested in Romania in 2022 on human trafficking charges, has maintained his innocence while his legal problems continue to attract public attention.