Zach Witkoff, one of the founding partners of Trump -backed World Liberty Financial, was seized by a hacker and used in the promotion of a false barron Trump -themed breast Coin. The crypto currency for fraud named $ Barron, rapidly gaining value, the market value reached millions, but has experienced a great collapse in seconds.
The account was hacked, the fake project was drawn attention
World Liberty Financial, known for its decentralized finance projects, confirmed that Witkoff’s X account was hacked and urged its users to be careful against shared content. Witkoff’s seized account was used in the promotion of $ Barron, a Solana -based breast coin on Wednesday. The scammers tried to attract investors by claiming that this Token was connected to Donald Trump’s youngest son Barron Trump. In fact, former president Trump will soon confirm that this Token was official.
However, World Liberty Financial made a statement in a short time and said, “Zach Witkoff’s account was seized. Please do not rely on the shipments introducing this project ”. $ Barron reached a market value of $ 73 million in just ten minutes after being released. However, it soon experienced a 99 %decrease and caused investors to damage greatly. This event was associated with a fraud method, which is commonly seen in the crypto market and known as “Rug Pull ..
Trump Family Themed Memecoin frauds are increasing
World Liberty Financial is known as a project founded in 2024 and released its own crypto money called WLFI in October. Some members of the Trump family, including Barron Trump, are listed in the project. Before the $ Barron incident, a breast coin was released on behalf of Ivanka Trump in January, and Ivanka Trump warned investors by explaining that it had nothing to do with this project.
Especially when Donald Trump launched his own crypto currency Official Trump in January and immediately after Melania Trump announced the token of Melania, the Trump family -themed breast coin projects began to gain popularity. However, this has led to an increase in fraud projects.
Breast Coin craze and increasing concerns
The breast coins created through famous names and themes seem to be an attractive opportunity for investors, but a risk of fraud. Binance’s founder Changpeng Zhao (CZ) warned investors on this issue and said, “They can only create breast coins by sharing the name or photo of someone. So, how do you understand whether these projects are officially? Or is that really important? ” He said.
Experts say that Memecoin projects are generally far from transparency and can cause major financial losses with sudden loss of value. On the other hand, Hester Peirce, a member of the US Securities and Stock Exchange Commission (SEC), said in a statement on February 11th that most Memecoin was not included in the current regulatory framework of SEC. “Many breast coins in the market may not be subject to a direct regulation within the scope of existing Post regulations, Peir said Peirce, emphasizing that investors should be careful against such projects.
