Stars, they’re just like us. Well, except for the throngs of paparazzi. The adoring fans. The ability to get a table at any restaurant at any time. OK, but they are just like us in the ways that they can get taken in by something that sounds too good to be true — like a crypto windfall.
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As cryptocurrency and Bitcoin become increasingly mainstream, it’s only natural that celebrities, just like us everyday folks, would get excited about potential opportunities, even attaching their names and their brands to crypto plans. Unfortunately, some of those plans turned out to be scams. And stars, just like the rest of us, aren’t immune from being scammed themselves.
Pump and Dump
On stage, Jason Derulo is known for singing and dancing his heart out for hits like “Savage Love” and “When Love Sucks.” Sadly, when it came to launching his own memecoin, called JASON, his smooth moves became stumbles. Though the June 2024 launch of JASON hit a high note thanks to a successful social media campaign, the coin’s value dropped by over 70% shortly after — causing investors to feel a little savage themselves.
How did this happen? According to Cointelegraph, “Derulo accused Sahil Arora, a crypto influencer and controversial memecoin co-creator, of orchestrating a pump-and-dump scheme for his own profit.”
Derulo is far from the only celebrity to fall prey to a pump and dump. Caitlyn Jenner said that the same crypto influencer, Sahil Arora, pulled the same stunt on her.
As Cointelegraph reported, “Both Jenner and Derulo accused Arora of scamming investors by failing to disclose vital information, such as insider holdings and risks, and of engaging in unfair trading practices, including selling off large portions of tokens after promoting them to the public.”
Phishing Scams
Kylian Mbappé, international soccer superstar, is famously light on his feet on the field. However, he took the digital equivalent of being tripped just before the goal line when fraudsters hacked his official X (formerly Twitter) account to promote a fake token called MBAPPE.
As CCN describes it, the fallout was damaging for investors and the star’s brand: “The scam, a familiar tactic used to target celebrities, quickly gained traction. The MBAPPE token experienced a meteoric rise in value, reaching a multimillion-dollar market capitalization before ultimately collapsing to zero.”
Other stars have been reeled in with crypto-related phishing scams. CCN reports that celebrities as diverse as the band Metallica and “Euphoria” star Sydney Sweeney have also fallen victim to hackers:
“Metallica and American actress Sydney Sweeney’s X accounts were hacked, and now-deleted posts were used to promote a crypto token named $METAL and $SWEENEY which brought to losses of $10 million and $13 million, respectively.”
When Being a Spokesperson Goes Awry
Tom Brady may be used to being a winner on the field, but when it came to serving as the face for cryptocurrency company FTX, he ended up fumbling the ball — largely through no direct fault of his own. Brady, along with his ex-wife Gisele Bündchen, had $30 million and $18 million, respectively, in company stock.
The football icon served as an ambassador for FTX, meaning he was very publicly associated with the company’s crash and burn, which left its stock worthless and its founder accused of wire fraud, securities fraud, money laundering and more. Reporting on the fallout for Brady and other celebrities associated with the company, Yahoo Sports highlighted the blow to their brands and finances, as well as the legal complications that followed:
“Brady and Bündchen are just some of the celebrities facing a lawsuit from a group of FTX customers who are upset with their endorsements for the company. Comedian Larry David, tennis star Naomi Osaka and Golden State Warriors guard Stephen Curry, among others, all promoted the company in commercials and are named in the lawsuit.”
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Bottom Line
Even fame and fortune can’t save you from the efforts of a determined scammer. All you can do is research, follow your gut, and hope the people you trust with your finances — or your reputation — will do right by you.
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This article originally appeared on GOBankingRates.com: 3 Crypto Scams That Fooled Very Famous People
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