Sahil’s $30M Pump and Dump Celebrity Meme Coin Scheme

Sahil Arora’s involvement in celebrity-backed cryptocurrency schemes has raised eyebrows, with reports suggesting he’s made over $30 million. 

But a closer look at his operations reveals a complex web of questionable practices and alleged exploitation. 

This article examines how Sahil leveraged celebrity influence to execute what many consider a significant scam and sheds light on the details of his crypto ventures.

Sahil Arora’s Early Forays into Crypto

Sahil’s journey into crypto began in 2017 when he was just 18 years old. He launched the Vuzelaa Group in India with the ambitious goal of installing Bitcoin ATMs worldwide. This early venture showcased his foresight and determination to capitalize on the burgeoning cryptocurrency market. However, it wasn’t long before Sahil realized that there were faster and more lucrative paths to wealth within the crypto space.

Between 2020 and 2023, Sahil launched several crypto projects, including ZelaaPayAE, a crypto debit card, and ZelaaNFT, an NFT marketplace. While both of these tokens ultimately failed, Sahil made a decent profit and got a taste for the quick gains that could be achieved in the crypto world.

The Celebrity Token Scheme

Sahil’s most infamous venture, however, involved creating and promoting celebrity tokens on the Solana blockchain. Capitalizing on his large Instagram following and verified status, Sahil began reaching out to celebrities, offering them substantial payments in exchange for their promotion of his tokens. The list of celebrities who participated is impressive. It includes names like Floyd Mayweather, Caitlyn Jenner, Iggy Azalea, Jason Derulo, Amber Rose, Lil Pump, Davido, Sunny Leone, Bobbi Althoff, and Trippie Redd.

The scheme was simple yet effective. Sahil would create a token and hold 25-40% of its total supply in one or multiple addresses. He would then pay a celebrity to tweet the token’s contract address to their millions of followers. Sahil would sell off his holdings as soon as the tweet went live, using the celebrity’s audience as exit liquidity. This meant that while thousands of fans were buying into the token, expecting its value to rise, Sahil was simultaneously selling, causing the token’s price to plummet and leaving the buyers with worthless assets.

The Financial Gains and Legal Gray Areas

Sahil’s celebrity token scheme was immensely profitable. Blockchain data provider Bubblemaps has traced over 40 addresses linked to Sahil, through which he funneled the proceeds of his operations. Since the beginning of 2023 alone, Sahil is estimated to have off-ramped $26.4 million, transferring the funds to multiple centralized exchanges (CEXs) for withdrawal. His monthly earnings from this scheme were substantial:

• January:$3 million
• February: $1.8 million
• March: $3.2 million
• April: $2.5 million
• May: $4.8 million
• June:$2.5 million
• July: $2 million
• August:$6.6 million

These figures do not account for the funds left in other addresses, suggesting that Sahil’s total earnings could be even higher.

What makes Sahil’s actions particularly concerning is the legal gray area in which they exist. While his actions have undoubtedly caused significant financial harm to countless investors, they are difficult to prosecute under current laws. 

Sahil’s transactions are on the blockchain, making them transparent, but his methods exploit the lack of clear regulations surrounding celebrity endorsements and token promotions in the crypto space.

Moreover, the celebrities involved are unlikely to pursue legal action against Sahil, as they are partially responsible for promoting the tokens to their followers. This shared culpability further complicates any potential legal recourse for those who lost money in the schemes.

Conclusion

Sahil Arora’s $30 million celebrity token fiasco is a stark reminder of the risks inherent in the unregulated world of cryptocurrencies. His ability to manipulate both celebrities and their audiences for personal gain highlights the need for greater oversight and accountability in the crypto space. 

As the industry continues to grow and attract more mainstream attention, investors and regulators must remain vigilant against schemes like Sahil’s, which prey on the greed and naivety of the masses.

Disclaimer

This article is based on publicly accessible information and our interpretations. It is intended for informational purposes only and should not be regarded as definitive evidence or legal advice.

Source: Tweet by @Bubblemaps