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In 2024, Dubai-based investor Sahil Arora made headlines for scams using the Solana (SOL)-based Pump.fun platform. Sahil Arora is accused of deceiving investors by launching altcoins linked to celebrities, allegedly earning around $30 million in the process.
Exploiting Legal Loopholes to Scam $30 Million Using Celebrities
According to data compiled by Bubblemaps, Arora launched altcoins on the Pump.fun platform in the names of celebrities like Caitlyn Jenner, Floyd Mayweather, Amber Rose, Sunny Leone, and Iggy Azalea. He made deals with these celebrities to share the contract addresses of these altcoins on social media for significant payments. However, Sahil sold a large portion of these altcoins immediately after the celebrities’ tweets and transferred the profits to centralized exchanges.
Bubblemaps identified that Arora conducted this scam using over 40 different cryptocurrency wallet addresses. For each altcoin, Sahil held between 25% and 40% of the total supply, consolidated these coins into a main wallet, and then transferred them to centralized exchanges. This tactic allowed Sahil to collect investors’ money and transfer it to his account throughout 2024.
Interestingly, Arora’s actions fall within a legal gray area, making legal pursuit challenging. The involvement of celebrities also implies potential legal liability for them. As a result, neither the celebrities nor the victims have taken legal action against Arora so far.
Pump.fun’s Record Growth May Offer New Opportunities for Scammers
Meanwhile, the Pump.fun platform, where Arora’s scams took place, has seen significant growth recently. In July, the platform set a record in contract revenues, earning a total of $28.73 million. Additionally, the platform surpassed the daily revenues of the Ethereum Blockchain, earning $5.3 million daily.
Currently, the platform’s practice of charging the initial buyer for altcoin creation and potentially opening doors for scammers is under criticism. This situation raises concerns that it may enable more activities by individuals like Arora.
