Crypto investigators like Nicolas Vaiman have made significant progress in unravelling scams linked to crypto meme coins, especially those launched by celebrities and influencers. Vaiman was scammed in 2022 in a meme coin rug pull, which led him to develop software to track coins passing through crypto wallets.
Vaiman’s investigation into meme coins launched by Caitlyn Jenner, Rich The Kid, and Soulja Boy revealed that the same crypto wallet was being used for the token releases. The coins plummeted in value soon after launch, leading to massive investor losses.
While many meme coins are based on internet jokes and pop culture trends, they have no currency value. However, prices often soar upon launch as speculators jump on the new offering. As a result, insiders who owned a significant part of the coin supply pre-launch offload their stake for a quick profit.
A Single Mastermind Behind Celeb Crypto Launches
Vaiman’s software allowed him to track crypto wallet addresses to create a visual map of hidden relationships between those dumping meme coins on the blockchain. He soon realised the unregulated industry is rife with countless shady scams and insider activity.
Upon investigating the pump and dumps of celebrity meme coins like Soulja Boy and even Jason Derulo, Vaiman found that a mysterious holder, Sahil Arora, was dumping a huge portion of the meme coins shortly after launch.
Arora, an Indian national in his mid-20s living in Dubai, would approach celebrities, and sometimes, they would contact him to launch meme coins. Arora dropped out of high school to launch his failed taxi app, Cabby, before creating Bitcoin ATMs to mainstream cryptocurrency.
Arora revealed he was the mastermind behind the $Jenner meme coin launch. He mints the tokens and plans launches for celebrities who hype the meme coins on their social media. As the token prices increase, Arora sells off his huge stake, leaving investors with massive losses.
Are Celebrities In On The Rug Pulls?
As Vaiman expanded his investigation last year, Arora divulged sensitive information about his interactions and contracts with celebrities. The details revealed that many celebrities, like Jason Derulo, were aware of the pre-planned crypto rug pulls despite publicly claiming never to sell their meme coin holdings.
If the celebrities were accused of any wrongdoing, they were instructed to claim innocence and blame Arora for the token’s crash. “Many of the celebrities, they wanted a scapegoat,” Vaiman told Business Insider. “So you can work with Sahil, pretend you’re getting fooled, and then you have an excuse for when things turn south.”
When Arora started sharing personal DMs of celebrities with Vaiman, he found in one of the exchanges that the mastermind directed a celebrity to accuse him if the coin’s price plunged. “Just say it’s me,” Arora told the celebrity. “Just say I’ve been the bad guy.”
The scams continue to increase. For instance, Haliey Welch’s Hawk Tuah meme coin surged to a market cap of over £397 million in November 2024 but plunged by 90% soon after a few wallets dumped over 80% of the token supply. The piling investor losses and shattered trust of celebrity fans are helping crypto attorneys find momentum in their lawsuits against renowned people accused of being involved in crypto fraud.
US Government Crackdown On Crypto Might Be Short-lived
Under Gary Gensler, the US Securities and Exchange Commission (SEC) slapped countless lawsuits on crypto firms and filed civil charges against celebrities, including Lindsay Lohan, Soulja Boy, Lil Yachty, and Akon, alleging they hid their roles in promoting crypto tokens.
However, President Donald Trump’s adoption of crypto, the appointment of pro-crypto officials, and the launch of his official meme coin, $TRUMP, could undermine the SEC’s years-long effort to fight crypto-related financial cybercrimes.
White House AI and crypto czar David Sacks recently said the $TRUMP meme coin is collectable. “It’s like a baseball card or a stamp,” he added. “People buy it because they want to commemorate something.”
However, Vaiman believes Trump’s meme coin follows a familiar pattern, with his team holding 80% of the coin’s supply. The crypto investigator also highlighted that 89% of the $MELANIA meme coin is held in a single crypto wallet.
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