Elon Musk X crypto scam alert

Summary:

⚈ Scammers are pushing fake Grok meme coins by falsely linking them to Elon Musk.
⚈ Fraudsters also impersonated the Tate brothers in a DADDY coin dinner scam.
⚈ Despite rising fraud, some traders profit from volatile meme coin surges.

During the first quarter (Q1) of 2025, cryptocurrency traders lost more than $1.7 billion in various digital asset hacks and attacks, per Finbold’s Q1 crypto market report, with an untold amount stolen via fraud and scams.

One deception that has been growing increasingly common since the start of the year is the numerous meme coins paying homage to xAI’s Grok artificial intelligence (AI) model.

While there is nothing wrong with basing an altcoin on an AI platform inspired by The Hitchhiker’s Guide to the Galaxy, the name’s newfound association with billionaire Elon Musk has given rise to a shady marketing practice.

The Grok meme coin scam

Scammers are flooding the social media platform X, as well as other online spaces frequented by cryptocurrency traders, claiming that the South African-Canadian billionaire is himself behind the project.

Some such promotions have also appeared on the popular digital asset quote and social network CoinMarketCap, with pages for the many Grok-inspired tokens populated by comments such as ‘$GROK ALWAYS WITH ELON. DONT MISS IT.’

However, unlike with X posts, which attempt to convince unsuspecting readers to click on dubious links, it is uncertain if the comments left on platforms such as CoinMarketCap are left by scammers, or ‘bag-holders’ hoping to pump a meme coin they purchased in hopes of making a quick buck.

Elsewhere, though not necessarily a full-blown scam, the sheer number of ‘shitcoins’ bearing the name Grok in one variant or another is highly indicative that the teams or individuals behind them are trying to earn money by misleading traders.

Tate brothers become the latest misused face in a crypto scam

Crypto scams on social media are not confined to falsely presenting themselves as Elon Musk. At the start of May, a page pretending that the Tate brothers are organizing a dinner event for the top holders of the Daddy Tate (DADDY) meme coin also emerged.

The swindle is inspired by President Donald Trump’s recent decision to invite the top holders of the Official Trump (TRUMP)—a cryptocurrency launched shortly ahead of the inauguration—to dinner with him.

Are crypto fraudsters losing their technological edge?

Interestingly, the 2025 deluge of accounts pretending they found Elon Musk’s—or other celebrities’—exclusive cryptocurrency advice or airdrops appears to indicate a drop in sophistication among scammers.

Despite AI video generation becoming significantly more advanced, fraudsters have given up on their earlier attempts to make full-blown fake videos in which a digitally-generated celebrity issues a false call to action.

As Finbold reported at the time, such a type of scam was especially common in late 2023, with Rippe Labs’ CEO Brad Garlinghouse being the go-to individual to abuse.

A bright spot in the Grok invasion

Interestingly, despite meme coins banking on brand recognition of unrelated works being dubious and highly convenient for scammers, legitimate cryptocurrency swing and day traders have been known to execute successful swaps.

The latest example came in the night between April 30 and May 1, when one digital assets investor turned $1,500 into nearly $300,000 within just five hours using an amorally-named New XAI gork (GORK).

Featured image via Shutterstock

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