Co-founder of World Liberty Financial, Zach Witkoff, fell victim to hackers who used his X account to promote a fake memecoin linked to Barron Trump. The token’s market cap surged to $73 million before it crashed by 98%, highlighting risks associated with memecoins.
$BARRON Memecoin Scam
Hackers hijacked Witkoff’s account to hype a fraudulent cryptocurrency named $BARRON, purportedly linked to Barron Trump. The scam saw the token’s valuation temporarily reach $73 million before crashing by 98%. Witkoff and World Liberty Financial distanced themselves from the scam, confirming the account breach.
Trump-Themed Memecoin Phenomena
The $BARRON incident is not the first controversy involving Trump-linked cryptocurrencies. Previous memecoins named after Ivanka and Donald Trump have sparked debates about the legitimacy of using public figures to hype crypto. Binance founder Changpeng Zhao has questioned the legality of such tokens.
Regulatory Gaps and Investor Risks
The rise in celebrity-themed memecoins raises regulatory concerns. Many tokens are launched overnight on speculative hype, leaving investors with losses. SEC Commissioner Hester Peirce has acknowledged the challenges of regulating memecoins under current laws.
The $BARRON crash has once again highlighted the significant risks of memecoins. Despite grand promises and hype, such projects often result in scams, underlining the need for caution and additional regulation in this sector.
