Social Media Giant X Takes Legal Action Against Bitcoin Content Creators in UK Fraud Case

Key Points

• Social media platform X has initiated legal proceedings against two identified individuals and additional unnamed account controllers in UK courts for suspected creator payment fraud.
• According to the platform, a network of cryptocurrency-themed accounts allegedly obtained a minimum of £207,384 through its creator payment system.
• The lawsuit claims these accounts duplicated content and artificially inflated each other’s engagement metrics to maximize revenue.
• X took action by suspending the accounts in question on August 18, subsequently filing formal legal proceedings on September 17.
• The platform has discontinued its Creator Revenue Sharing initiative and launched a new Original Content Rewards system in its place.

The social media platform X has initiated legal proceedings in the United Kingdom targeting two specifically identified individuals and several unnamed account operators allegedly involved in a coordinated scheme centered around Bitcoin-related content and creator compensation.

The legal action was formally submitted to the Business and Property Courts of England and Wales on September 17.

X Internet Unlimited Company alongside X Corp identified Vivek Kumar Sen and Zamyang Sherpa as primary defendants, in addition to unidentified individuals allegedly controlling connected accounts.

The allegations remain unproven in a court of law, with no public defense submissions or judicial rulings available as of September 21.

Platform Claims Orchestrated Cryptocurrency Account Operation

According to X’s legal filing, six primary accounts functioned as an orchestrated network specifically designed to amplify monetizable user engagement.

The identified accounts comprise @Vivek4real_, @Bitcoin_Teddy, @saylordocs, @TrendingBitcoin, @Kalshibacktest and @PolyBackTest.

The legal documents assert that certain accounts posted nearly identical content within moments of each other.

X further contends that these accounts systematically liked, reshared and commented on one another’s posts.

The platform maintains this coordinated behavior was strategically employed to inflate impression counts and corresponding creator revenue under its Creator Revenue Sharing Program.

Three supplementary accounts were identified in an attachment as allegedly participating in comparable engagement manipulation.

X indicated that ongoing investigation may reveal additional accounts or individuals involved in the operation.

Platform Demands Return of Over £207,000

According to X’s filing, the platform distributed no less than £207,384 to the accounts in dispute.

The highest individual payment documented was £74,332.44 for @Vivek4real_, with @saylordocs receiving £49,441.91, per the legal documents.

Revenue linked to @Bitcoin_Teddy totaled approximately £50,000, while remaining accounts received comparatively smaller sums.

X additionally seeks a minimum of £75,000 to cover investigation expenses, analytical work, remediation efforts and preventive measures.

The platform asserts that certain payment accounts associated with the network contained fraudulent information and that shared devices, cookies, software applications and additional digital identifiers linked portions of the network.

The legal grounds cited include fraudulent misrepresentation, contractual violations, unjust enrichment, knowing receipt of ill-gotten funds and conspiracy through unlawful means.

X is pursuing full reimbursement or return of contested funds, compensatory damages, accrued interest and legal expenses.

Platform Transitions to New Creator Compensation Model

X deactivated the contested accounts on August 18 following detection of what it characterized as organized creator revenue fraud.

The platform ceased accepting new enrollments into Creator Revenue Sharing on August 7 and terminated all earnings under that program on September 7.

X commenced implementing its successor Original Content Rewards Program on September 8.

The revised compensation framework calculates payments based on qualified impressions from original material viewed by Premium subscription holders.

The program’s guidelines specifically disqualify fraudulent, purchased, promoted or synthetically generated impressions.

Duplicated posts, re-uploaded media files and content offering minimal original value are likewise ineligible for compensation.

X explicitly prohibits creators from employing bots, automated systems or alternative methods to artificially generate engagement.

The legal case continues through the court system, with no judicial determination yet made regarding the validity of X’s allegations against Sen, Sherpa or the unnamed defendants.

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