YouTube detective Coffezilla has posted a video showing in detail how Ben Phillips allegedly sold millions of dollars worth of SFM to his followers on YouTube and other social media sites.
Phillips made several bullish claims about Safemoon in outspoken social media posts that have since been deleted. These posts coincided with Phillips offloading huge amounts of SFM tokens, whilst encouraging his followers to keep on hodling, a classic “pump and dump” move.
Safemoon, a “self generating liquidity pool” based on Binance Smart Chain, has been described by many crypto researchers as a ponzi scheme.
Beware the YouTube shiller
Ben Phillips gained a YouTube following of 4.6 million subscribers thanks to his prank videos, and was later apparently contracted by Safemoon to join their marketing team, a role for which he was paid a total of 5.2 trillion SFM tokens.
Phillips himself inadvertently revealed his transaction history with Safemoon by publicly tweeting his BNB wallet address:
Subsequent on-chain analysis of the address shows a recurring pattern of Phillips shilling Safemoon to boost its value, before selling large amounts of tokens after a pump.
Since Ben Phillips was apparently employed by Safemoon at the time of the events, this is likely an illegal practice under the US securities law and has resulted in a class action lawsuit from a major law firm, stating:
"The complaint alleges that Defendants made false and misleading statements concerning SafeMoon’s growth prospects, financial ownership, and financial benefits for SAFEMOON token investors, and used celebrity promoters to lure in unsuspecting investors so that SafeMoon insiders could sell off their holdings into artificially created volume."
The investigation estimated that Phillips profited to the tune of 12 million USD. The YouTuber’s social media accounts may prove to be a double-edged sword, both giving him a large-enough audience to market Safemoon to, but also providing a raft of evidence to back up the lawsuit, such as images from Instagram of Phillips allegedly buying a new Rolls Royce, and eating steak wrapped in gold leaf.
Coffeezilla has also exposed alleged crypto scams promoted by Jake Paul, Floyd Mayweather, Steven Seagal and Mark Cuban.
If you are wondering how NOT to inadvertently contribute to the next influencer luxury car, remember to always do your own research on the projects you invest in: those which will really have an impact on the crypto world, shouldn't need celebrities or loud influencers to push them.
For instance, if the same scenario would have happened with stocks instead of tokens, the perpetrator would already have been indicted. While we watch the regulations being shaped around the new crypto economy, please always bear in mind our security tips for beginners and how to detect a scam while evaluating your next investment.
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.