A new video shows that Jake Paul is operating on a different level, despite the fact that celebrities shilling criptocurrencies aren't uncommon in the industry.
The video released by Coffeezilla on YouTube revealed that YouTuber and professional boxer Jake Paul had earned millions by promoting worthless tokens to his fans.
In the video, Coffeezilla showed that Paul had been doing paid promotions for a number of cryptocurrencies such as Safemoon, Yummy Coin, Milf, and more. He doesn't label these promotions as paid ads, so he gives his fans the impression that these are personal endorsements.
The boxer wants to promote a new wallet with a modus operandi. The wallet is most likely to be funded with the token, most likely by the tokens developer. He then uses social media, usually his Twitter, to praise the token.
Soon after that, the coins from the new unknown wallet are transferred to a new wallet, this one is registered to the PRBLM CHILD on OpenSea. As it turns out, that is Jake Paul's alias, which means he is likely the one who owns the wallet.
If there is any doubt about whether Paul is the owner, Coffeezilla clears the air. The first transaction to the PRBLM CHILD wallet came directly from Jake Paul's official wallet, according to the video. He is connected to it.
Jake Paul made over $2 million through these pump and dump schemes. All of the projects he promoted have lost 90% of their value or have been abandoned.
The boxer is facing a class action by a lawsuit for promoting Safemoon from those who invested in the token. He might be in legal trouble if he didn't announce that all of these tweets were paid promotions.
The Securities and Exchange Commission SEC might be interested in if some of the tokens are defined to be unregistered securities, and the Federal Trade Commission FTC could take this up.
Jake Paul is not the first celebrity to promote shady projects without disclosure of their affiliations.
Last year, Kim Kardashian promoted Ethereum Max to over 200 million followers on Instagram, which is what U.K. regulators describe as the biggest criptocurrency promotion ever. She didn't tell them that this was a paid promotion.
Steven Seagal, a popular Hollywood actor, was forced to pay a $300,000 fine to the SEC for failing to disclose he was being paid to shill an initial coin offering ICO. This litany of celebrity endorsements gave rise to the campaign of Binance, where celebrities were advising their followers to do their own research before investing in any coin.