You know what they say, "behind every great fortune, there's a great scam." Well, in the world of crypto, it seems like celebrities are the latest accomplices to join this deceit game. That's right, folks, some of our favorite stars have been caught up in the world of crypto shenanigans, and it's not pretty.
DJ Khaled
First on the list of fraudulent crypto pushers is none other than DJ Khaled. Yes, you read that right, the same DJ Khaled who brought us hit songs like "I'm the One" and "All I Do is Win" was a pitchman for a crypto scam. He was caught promoting a questionable ICO (Initial Coin Offering) on social media called Centra Tech, which eventually turned out to be a sham. According to a SEC complaint, " Khaled failed to disclose a $50,000 payment from Centra Tech, which he touted on his social media accounts as a "Game changer." In April 2018, the Commission filed a civil action against Centra’s founders, claiming that the ICO was fraudulent. DJ Khaled, you disappoint us.
Floyd Mayweather
Next up, we have the one and only Floyd Mayweather. This legendary boxer is known for his quick reflexes in the ring, but it seems like his judgement is a little slower outside of it. Floyd was also caught promoting the same sketchy ICO as Khaled. On social media he went on to say that Centra's ICO "starts in a few hours. Get yours before they sell out, I got mine…" Well, Floyd, some people did get theirs, but got little in return. Both Khaled and Mayweather paid monetary penalties for their actions.
Steven Seagal
In 2018, Seagal endorsed a cryptocurrency called Bitcoiin2Gen (yes, with two "i's" and no, it's not a typo). Bitcoiin2Gen promised to be the next big thing in the world of cryptocurrencies, but it soon became apparent that it was just another scam. Including, making the false statement that Bitcoiin2Gen would be would be deliverable on the Ethereum blockchain.
Seagal was paid a hefty sum to endorse Bitcoiin2Gen and promote it on social media. The actor neglected to disclose that he had been offered $250,000 in cash and $750,000 worth of B2G tokens in exchange for his promotions.
Unfortunately, he failed to do his due diligence and ended up endorsing a sham.
Moreover, The U.S. Securities and Exchange Commission (SEC) issued a warning that the company behind Bitcoiin2Gen was operating as an unregistered securities offering.
According to the SEC "Seagal agreed to pay $157,000 in disgorgement, which represents his actual promotional payments, plus prejudgment interest, and a $157,000 penalty. In addition, Seagal agreed not to promote any securities, digital or otherwise, for three years."
So why are celebrities getting involved in crypto scams, you might ask? The answer is simple: money. Promoting these scams can earn celebrities big bucks, and they don't seem to care about the consequences of their actions. These scams can cause irreparable damage to people's finances, and the fact that celebrities are involved only adds insult to injury.
Tips To Avoid Getting Scammed
But here's the good news, folks. You don't have to fall victim to these celebrity crypto scams. Here are some tips to avoid getting scammed:
Do your research. Before investing in any crypto venture, make sure to thoroughly research it first. Look for reviews, articles, and opinions from trusted sources to get a better idea of its legitimacy.
Don't trust celebrity endorsements. Just because a celebrity is promoting a crypto venture, it doesn't mean it's a safe investment. In fact, celebrity endorsements can be a red flag for scams.
Check the credentials of the people behind the project. Are they reputable and have a solid track record in the industry? Or are they just trying to take advantage of the hype around crypto?
Be wary of guarantees. If someone promises guaranteed returns on your investment, it's probably too good to be true. The crypto market is inherently volatile, and there are no guarantees when it comes to investing.
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