KSI Accused of Crypto Pump-and-Dump Schemes by Prominent Investigators

Popular YouTuber and rapper KSI, real name Olajide Olayinka Williams Olatunji, has landed in controversy over allegations that he executed pump-and-dump schemes related to at least three crypto tokens. The accusations come from crypto fraud investigator Zach XBT, known for uncovering major scams in the space.

TLDR

• Crypto investigator ZachXBT accused YouTube star KSI of pump-and-dump schemes involving crypto tokens XCAD, ERN, and P***Y.
• ZachXBT presented evidence showing KSI promoted the tokens on social media shortly before selling large amounts worth nearly $1.2 million total.
• KSI admitted selling the tokens but claims he was just bad at crypto investing, lost money overall, and had no “malicious intent.”
• Skeptics like YouTuber Coffeezilla doubt KSI’s explanation and say his actions align with textbook pump-and-dump tactics.
• The accusations against KSI come shortly after similar controversy for his business partner, fellow YouTuber Logan Paul, over an allegedly fraudulent NFT project.

According to Zach XBT, KSI used his significant social media following across YouTube and X to promote certain tokens, causing prices to surge. ZachXBT then presented on-chain data showing large sell-offs from KSI’s wallet for over $1 million in profits shortly after.

The practice of artificially inflating token prices before dumping holdings is known as a “pump-and-dump” scheme.

Remember when KSI posted

“All of a sudden, my $XCAD bag is looking juicy again. #HodlGang”

Then proceeded to dump $850,000 worth of XCAD over the following days from his wallet address. https://t.co/qAEIRYGTMd pic.twitter.com/Gn6LMybQia

— ZachXBT (@zachxbt) February 13, 2024

The tokens named in the exposé were XCAD Network (XCAD), Ethernity Chain (ERN), and an NFT project called P***Y. In one example from March 2022 cited by ZachXBT, KSI tweeted to his hundreds of thousands of followers that his XCAD holdings were “looking juicy again” and used crypto community slang indicating he would continue holding. But within days, ZachXBT’s research showed KSI’s wallet dumping $850,000 worth of XCAD.

“If that isn’t a textbook pump and dump, I don’t know what is,” said popular scam investigator Coffeezilla in a YouTube video reacting to the allegations. He doubted KSI’s claim that the sell-offs were just unsuccessful attempts to chase pumps and invest in other tokens. “I don’t really buy that he had no clue that tweeting one thing would positively affect the price in his favor,” Coffeezilla added.

KSI makes posts on 5-11-21 at 10:12 AM UTC saying

“The PU$$Y is about to explode”

~1 hour later he dumps his remaining tokens for $25K

0xf11fe7d928c2fbecd5514b8ebff0a51193777366e262f8c20865a1ef82f2f035 pic.twitter.com/kX8alENViH

— ZachXBT (@zachxbt) February 14, 2024

In response to the growing publicity, KSI reopened his old crypto-themed X account and addressed the controversy publicly. While admitting to the transactions, he denied malicious intent and profiting overall. Instead, KSI claims inexperience and excitement over crypto’s volatility led him to impulsively trade tokens and tweet “hype” in hopes prices would rise.

“I wish I was an evil genius that would pump and dump at the right time, because at least then people would say I had some wit about me. Reality is, I was just sh** at crypto,”
KSI wrote.

He stated that he lost $2 million overall investing in crypto.

Skeptics point to the precise timing of KSI’s promotions and subsequent sell-offs as evidence his explanations don’t fully add up. They also highlight his close business ties with Logan Paul, who was recently sued for fraud over his promotion of an allegedly scam NFT project called CryptoZoo.

While KSI maintains his innocence regarding malicious pump-and-dump plots, his reputation has taken a hit from the viral allegations at the hands of prominent crypto investigators. It serves as a reminder for influencers to exercise caution when publicly supporting crypto projects, even if coming from a place of authentic excitement. Large follower counts equate to market-moving power that authorities increasingly frown upon if used irresponsibly or unethically.

The saga remains developing amid calls for KSI to address the situation in more formal capacity such as a direct video statement or legal response. For now, the accused YouTuber insists he just “wasn’t very good” at trading crypto despite appearances of coordinated pump-and-dump schemes at followers’ expense. But investigators like ZachXBT and Coffeezilla continue working to unearth the actual truth around influencer misconduct in the crypto wild west.

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