Rapper 50 Cent’s X Used to Promote $3M Crypto Scam
In an alarming reminder of the vulnerability of digital platforms, renowned rapper Curtis James Jackson III, better known as 50 Cent, he was recently revealed that his X (formerly Twitter) account was hacked. This breach was a personal violation and a conduit for a large-scale cryptocurrency scam. The incident underscores a growing trend of cybercriminals targeting high-profile social media accounts to perpetrate financial frauds, particularly in the volatile world of cryptocurrencies.
On 21st June, 50 Cent took to Instagram to inform his 32.8 million followers that his X account and website had been compromised. Hackers exploited his substantial social media influence to promote a fraudulent memecoin named GUNIT, leading to a pump-and-dump scheme. “Twitter worked quickly to lock my account back down. Whoever did this made $300,000,000 in 30 minutes,” he stated, initially overestimating the financial impact of the scam.
My Twitter & https://t.co/iaLj5OUvRT was hacked I have no association with this Crypto. Twitter worked quickly to lock my account back down. Who ever did this made $3,000,000 in 30 minutes. pic.twitter.com/I07Eqpc2xl
The fraudulent scheme involved creating a new cryptocurrency token, GUNIT, artificially inflating its value using 50 Cent’s substantial follower base. This classic pump-and-dump strategy saw the token’s price skyrocket as unsuspecting investors bought into the hype. However, the token’s value plummeted soon after, with the hackers selling off their holdings at the peak price, leaving investors with worthless assets.
Trading data reviewed by Cointelegraph showed a rapid spike and subsequent crash in the token’s price, a telltale sign of a rug pull. Dex Screener data revealed significant sales by multiple wallet addresses, with one account offloading $721,000 worth of GUNIT. Despite the rapper’s claim of a $300 million fraud, the actual trading volume was closer to $19.4 million, with the hacker’s profit estimated at around $3 million.
Celebrity Endorsements and Crypto Scams
This incident is not isolated. The allure of celebrity endorsements has repeatedly been leveraged to legitimise fraudulent cryptocurrency projects. Caitlyn Jenner, for instance, faced significant controversy with the launch of her token, JENNER. While her X account was not confirmed hacked, her mixed messages and promotions led to market confusion and volatility. Jenner initially posted about accepting other memecoins but later retracted, stating, “That ad for a third party token was taken down! As I have said from the beginning, my only focus is $Jenner.”
These cases highlight a troubling trend in which celebrities’ reputations are used to manipulate markets. “The surge in celebrity-driven meme coins should prompt the US legislature to act,” commented Ashton Wolfe, Managing Partner at MohrWolfe. With brand names launching meme coins, there is no better time than now for Congress to bring clarity to an already more than a decade-old industry.”
The Need for Regulation and Vigilance
The repeated exploitation of celebrity social media accounts for crypto scams raises critical questions about regulatory oversight and cybersecurity. Enhanced security measures for social media platforms and stricter regulations for cryptocurrency markets are imperative to prevent such fraudulent activities. The lack of clear regulatory guidelines makes it easier for scammers to exploit the booming interest in digital currencies.
This is a stark reminder of the importance of securing their digital presence for celebrities. The financial and reputational damages from such breaches can be substantial. It calls for the public to remain vigilant and critical of investment opportunities that seem too good to be true, especially those endorsed through social media channels.
Conclusion
The hacking of 50 Cent’s X account to promote the GUNIT memecoin scam is a significant example of the increasing intersection between cybercrime and celebrity influence in the digital age. This incident and similar cases involving other celebrities underscore the urgent need for more robust cybersecurity measures and regulatory oversight in the cryptocurrency market. As the digital landscape evolves, public figures and everyday users must adopt stringent security practices to safeguard against fraudulent schemes.
