TLDR
- ZachXBT investigation reveals 160+ crypto influencers failed to disclose paid token promotions
- Leaked spreadsheet shows payments ranging from hundreds to thousands of dollars per post
- Less than 5 of 160 influencers properly disclosed advertisements as required by FTC
- Evidence includes Solana wallet addresses and onchain payment receipts
- Violation of disclosure rules can mislead investors and trigger regulatory action
Web3 detective ZachXBT has uncovered evidence that more than 160 cryptocurrency influencers violated federal disclosure rules by hiding paid promotions from their followers.
The blockchain investigator published a detailed spreadsheet Monday showing payment data for over 200 crypto influencers who were contacted for a token promotion campaign. The leaked documents reveal a systematic failure to follow advertising disclosure requirements.
According to ZachXBT’s analysis, fewer than five influencers out of roughly 160 who accepted promotion deals properly labeled their posts as paid advertisements. This represents a compliance rate under three percent.
The spreadsheet contains per-post pricing ranging from hundreds to five-figure amounts. Payment details include Solana blockchain wallet addresses and links to verified onchain transaction receipts.
FTC Disclosure Requirements Ignored
Federal Trade Commission rules require influencers to clearly disclose material connections with brands in social media posts. These regulations protect consumers from mistaking sponsored content for independent recommendations.
Crypto influencers, often called Key Opinion Leaders or KOLs, wield enormous influence over token prices through their recommendations. When followers don’t know about paid partnerships, they may make investment decisions based on what appears to be unbiased analysis.
The investigation reveals coordinated promotional efforts where multiple influencers promoted the same token without disclosure. This practice can create artificial demand and mislead retail investors about the true nature of the content.
ZachXBT’s evidence includes documentation of actual payments made to influencer wallets. The onchain receipts provide concrete proof that financial transactions occurred between promoters and the token project.
Growing Regulatory Scrutiny
Undisclosed crypto promotions have drawn increased attention from regulators and law enforcement. The Securities and Exchange Commission and FTC have both taken action against influencers who failed to properly disclose paid partnerships.
The practice becomes especially problematic with low-liquidity tokens that can experience extreme price volatility. Brief promotional campaigns often lead to rapid price increases followed by sharp crashes that harm retail investors.
ZachXBT has built his reputation investigating cryptocurrency fraud and market manipulation schemes. His previous exposures have led to regulatory action and helped protect investors from various crypto scams.
This latest investigation focuses specifically on disclosure violations rather than outright fraud. However, the systematic nature of the non-disclosure raises questions about transparency standards in crypto marketing.
The timing coincides with broader regulatory efforts to bring clarity to cryptocurrency advertising practices and protect retail investors from misleading promotional content.
