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Altcoins

X’s Crackdown on Fake Bitcoin Influencers Exposes How Crypto Scams Thrive on Engagement

X is taking legal action against people it accuses of manipulating its creator-revenue system through a network of Bitcoin-focused accounts. In a complaint filed in England and Wales, X alleg

AnonymousCryptoCompass newsroom
September 21, 2026
4 min read
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X’s Crackdown on Fake Bitcoin Influencers Exposes How Crypto Scams Thrive on Engagement
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X is taking legal action against people it accuses of manipulating its creator-revenue system through a network of Bitcoin-focused accounts. 

In a complaint filed in England and Wales, X alleges that several defendants operated multiple accounts as one coordinated network, used similar or identical posts, and interacted with one another to create the appearance of genuine activity. 

X says it suspended the defendants’ accounts on August 18 for coordinated revenue-sharing fraud and platform manipulation. The scheme generated more than £207,000 in payouts, although the allegations have not been tested at trial.

The engagement was the product

The alleged scheme did not depend on convincing people to send Bitcoin to a scammer. Instead, the alleged operators treated attention itself as the asset.

According to the complaint, the defendants allegedly used several accounts to like, repost, and reply to one another’s content, creating activity that appeared to come from independent users; meanwhile, X’s Creator Revenue Sharing program paid eligible users based on the engagement their posts generated.

The complaint alleges that some accounts posted identical content within minutes, while others replied to the same post within seconds. X also alleges that financial accounts and identifying information were structured to make the accounts appear less connected.

For crypto users, this matters because social proof is often part of how scams gain credibility. A post with thousands of views or a large follower count can look trustworthy even when that activity is manufactured.

Overview of the case between X and the defendants Source: X’s website

A familiar problem in crypto

Crypto already has a long history of scams built around impersonation, fake giveaways, and influencer-style promotion. DeFi Planet has previously reported on crypto scams involving fake influencers and impersonation. In May this year, David Schwartz, XRP’s CTO, warned XRP holders to be mindful of rising fake airdrop and reward scams targeting XRP users.

The X case adds another layer. The same engagement tactics can influence what ordinary users see and trust.

A fake Bitcoin account can first build an audience, appear popular, and repost market commentary until its identity looks established. That reputation can later be used to promote a token, investment opportunity, trading service, or wallet link.

ALSO READ: Crypto Security Has Come a Long Way, So Have the People Trying To Break It

Nikita Bier’s response

Former Head of Product and now part-time advisor at X, Nikita Bier, who helped identify the alleged scheme, said one person operated more than 10 accounts and allegedly defrauded X’s revenue-sharing program of more than $250,000 over two years. He said he forwarded the case to law enforcement.

Bier later responded to James Burnham’s post about X’s legal action with “Got him,” indicating that the account network he had flagged was among those targeted by X.

His account adds another detail to the case. The alleged abuse involved multiple accounts operating together to generate engagement and revenue. For crypto users, that matters because coordinated accounts can make manufactured popularity look like genuine community interest.

What users should watch for

The major lesson is not to treat engagement as proof. Users should check who controls an account, whether its content is original, and whether other independent sources support its claims.

Crypto scams often move quickly because social media rewards attention before verification. The X lawsuit shows how that incentive can be exploited from inside the platform itself.

If artificial engagement gets revenue, genuine creators can lose money and visibility. X’s action tests whether a platform can protect authentic engagement when it becomes a financial commodity.

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