X Marks the Scam: Social Media Drives $500M in Crypto Losses

$500M Lost to Memecoin Scams in 2024: Celebrities Targeted in Major Crypto Heists
From Mbappe to Wiz Khalifa: How Social Engineering Fueled $500M in Crypto Scams
Rug Pull Epidemic: Memecoin Scams Wipe Out Half a Billion Dollars in 2024

Memecoin Scams Cost Investors Over $500 Million in 2024, Says Merkle Science Report

More than $500 million was lost to memecoin rug pulls and crypto scams in 2024, according to a report released by crypto intelligence firm Merkle Science. The report highlights a sharp rise in scams driven by social engineering tactics, where scammers impersonate high-profile individuals to gain trust and defraud investors.

Social Engineering: The New Frontier of Crypto Scams
The most damaging scams involved social engineering—a technique that manipulates people into revealing sensitive information or engaging with fraudulent content. Scammers often targeted celebrities and tech influencers, compromising their social media accounts to promote fake memecoins.

In one high-profile case, scammers hacked the X (formerly Twitter) account of French football star Kylian Mbappe. They used his platform to promote a fraudulent memecoin, which quickly soared to a $460 million market cap before being rug pulled, leaving investors with worthless tokens.

Another incident involved music artist Wiz Khalifa, whose massive following of 35.7 million on X became the target of a scam promoting a fake WIZ token. The token briefly reached a $3.4 million market cap before crashing to zero.

“These scams aren’t just opportunistic—they’re highly coordinated operations that exploit trust at scale,” said Robert Whitaker, Director of Law Enforcement Affairs at Merkle Science. “Hackers aren’t just breaching wallets anymore. They’re hijacking the credibility of celebrities and industry leaders to manipulate markets in real time.”

X: The Epicenter of Crypto Scams
Merkle Science’s report reveals that 75% of all crypto-related scams in 2024 occurred on X, with 19% happening on YouTube. The scams were evenly split between rug pulls (44%) and phishing attacks (44%), highlighting the broad range of tactics used by fraudsters.

While traditional crypto hacks often targeted exchanges and wallets, these new scams leverage the trust and influence of public figures to amplify their reach. As the memecoin craze continues, investors are urged to exercise extreme caution, especially when projects are endorsed by celebrities.

The Bottom Line:
The rise in memecoin scams underscores the growing need for stronger security measures on social media platforms and greater investor awareness. As Whitaker notes, “Platforms like X have become the primary battleground for crypto scams, and it’s critical for users to verify any crypto promotions before investing.”

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