CoffeeZilla reveals Jake Paul's alleged crypto scams amid Safemoon lawsuit

Source: Jake Paul

CoffeeZilla, a YouTuber who has made a name for himself exposing influencer crypto-scams, released a brand new video Monday doing a deep dive into the allegations that Jake Paul engaged in multiple pump-and-dump crypto scams over the past couple of years. The original allegations were revealed to the public in a new Class Action lawsuit against Safemoon that names Jake Paul, Soulja Boy, and Nick Carter as defendants.



Paul is being sued for his part in promoting Safemoon, but according to CoffeeZilla, Paul may have engaged in even more crypto schemes that were designed for the YouTuber and boxer to profit off his fans. CoffeeZilla claimed that Paul has engaged in as many as five crypto-scams, including Safemoon, League of Sacred Devils, Yummy, StickDix, and MILF, with Zilla estimating a total of $2.23 million dollars in profit being funneled to a singular wallet named for Paul's boxing nickname "the problem child."


"Many people are probably wondering if I am making this video to make sure Jake Paul loses this lawsuit," Coffeezilla said in the introduction of his video. "I want to be clear. Absolutely not, that was never the intention. It was just a happy accident." 


CoffeeZilla, with the help of Twitter user Blamebootsy, traced several of Jake Paul's apparent crypto promotions back to a singular wallet that appears to be Paul's end destination for crypto-schemes he has carried out. 



According to Zilla, Jake Paul's shady crypto dealings started with him promoting an NFT project called Sacred Devils, which led to major losses for most people who purchased those NFTs. He also reportedly funded a separate, now-abandoned NFT project called Stickdix from the same wallet as his Sacred Devils wallet. Zilla claims that Paul then brought in $1.55 million dollars with that Stickdix project before abandoning it.



Zilla went on to track "secret wallets" allegedly owned by Jake Paul, by looking at who received free Safemoon on the same day Paul promoted it last March. Zilla discovered one wallet that was paid 54 trillion (with a T) Safemoon the day before Paul's promotion, which then later cashed out the Safemoon to a wallet called "ProblemChild." This wallet is also linked to Paul's promotion of MILF token and yummy token, both of which were also reportedly promoted without an ad disclosure.


"This would have been a pretty good scheme," Zilla concluded. "Except that every time he went to cash out, he did it at the same wallet, the ProblemChild wallet. And that was his mistake. Because by building enough circumstantial evidence against himself, eventually, it became very strong."


So in short, Paul appears to have been promoting crypto projects and getting paid for those promotions, without ever disclosing that these were ads, which is a violation of Federal Trade Commission rules. Based on Zilla's calculation, Paul made over $2 million USD from his undisclosed promotions of these projects, while his fans reportedly lost money, with each of those projects spiking and then dropping drastically in value soon after the promotion occurred.


Given that Paul is facing a lawsuit for his promotion of at least Safemoon, it is possible that he will soon face some financial consequences for his behavior if he is found liable for his activity related to at least Safemoon. We will have to wait and see.


You can check out CoffeeZilla's full investigation below:

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