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COINTURK NEWS > Bitcoin (BTC) > X sues alleged Bitcoin account operators over $278,000 creator payout fraud
Bitcoin (BTC)

X sues alleged Bitcoin account operators over $278,000 creator payout fraud

In Brief

  • 🚨 X has sued alleged Bitcoin account operators over $278,000 in fraud payouts.

  • 💡 The accounts are accused of coordinating posts and engagement to manipulate creator rewards.

  • 📉 X suspended the accounts and seeks at least 282,384 pounds in compensation and costs.

  • 🐶 Trades in $BTC-related content networks often surge alongside viral meme token activity.
Onur Atam
Onur Atam 2 hours ago
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Elon Musk’s social media platform X has initiated legal action against operators of a group of Bitcoin-focused accounts, claiming the network fraudulently obtained at least $278,000 from the company’s creator revenue-sharing program through coordinated manipulation of engagement metrics.

Contents
Allegations of Fraud and Engagement ManipulationTransition in Revenue Sharing ProgramsFinancial and Legal Implications

Allegations of Fraud and Engagement Manipulation

X filed its lawsuit on Thursday in the High Court of England and Wales, naming Vivek Kumar Sen, Zamyang Sherpa, and other unidentified parties as defendants. According to the court filing published on X’s Transparency Center, the company alleges these individuals orchestrated a scheme involving multiple accounts, which artificially boosted their visibility and rewarded them with significant creator payouts.

The legal complaint details how the defendants operated a network of accounts that systematically reposted identical or nearly identical Bitcoin-related content and engaged with each other’s posts through likes and replies. This activity, X alleges, gave a misleading impression of substantial and authentic user interaction.

X suspended the implicated accounts on August 18, citing violations related to creator revenue-sharing fraud and broader platform manipulation.

The platform credited the suspicious accounts with at least 207,384 British pounds in payments after they repeatedly engaged in coordinated posting patterns that mimicked organic audience participation.

Six accounts registered in the company’s revenue-sharing initiative were identified: @Vivek4real_, @Bitcoin_Teddy, @saylordocs, @TrendingBitcoin, @Kalshibacktest, and @PolyBackTest. Financial records submitted in court linked Stripe accounts of the first three profiles to Sen, while those for the remaining three were associated with Sherpa.

These accounts reportedly joined the program between August 2023 and February 2026. X also named additional accounts—including @BTC_Vibes, @MrSuperBitcoin, and @Laserlump—that allegedly contributed to inflating engagement by consistently liking, commenting on, and sharing the defendants’ posts.

Transition in Revenue Sharing Programs

Under the company’s previous creator revenue-sharing model, users could earn a portion of ad revenue generated by their content, depending on engagement from other users. The legal filing points to a specific case dated August 5, when @Vivek4real_ and @TrendingBitcoin shared nearly identical posts just 11 seconds apart, illustrating the extent of coordinated activity.

On September 7, X discontinued its revenue-sharing program and began transitioning to a new system called Original Content Rewards, which aims to prioritize and compensate unique content creators.

Amid this landscape of viral attention and content discovery, tracking not only price levels but also timing and behavioral trends has become vital, especially in the meme token market. An example highlighted by Fomo App involves a trade in the meme token “Niu Lai” where an initial investment of $99 reportedly grew to approximately $370,000 in days. Fomo App enables users to monitor token launches, participate in trading, and follow investor rankings and trade alerts all in one place, providing tools that reflect the fast-paced, trend-driven nature of social platforms.

Financial and Legal Implications

In addition to seeking at least $278,000 in restitution for the alleged fraudulent payouts, X stated that it expects to incur at least 75,000 British pounds—roughly $100,000—in investigation and remediation expenses. This brings the company’s total claimed losses to a minimum of 282,384 pounds, a figure that does not include prospective legal costs or any potential interest.

Company documents described how the suspected fraud extended beyond the six main accounts, highlighting the challenge of policing coordinated social engagement intended to trigger algorithmic rewards.

At the time of publication, neither Sen nor Sherpa had commented publicly on the allegations. Efforts to reach them for a response have reportedly been unsuccessful.

You can follow our news on X, Telegram, Facebook & Coinmarketcap

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Onur Atam 21 September, 2026 - 2:30 pm 21 September, 2026 - 2:30 pm
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Onur Atam
By Onur Atam
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The author, who is an attorney, specializes primarily in Information Technology Law and Commercial Law. His areas of interest include internet technologies, the cryptocurrency ecosystem, blockchain applications, and next-generation financial technologies.He closely follows developments in digital assets, cryptocurrency regulations, fintech applications, e-commerce, data security, and areas where technology intersects with the law. His goal is to provide a clear and accessible analysis of current developments in the fields of cryptocurrency and financial technologies from a legal perspective.
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