Scammers impersonating Saudi Arabia’s Crown Prince Mohammed bin Salman have launched a fraudulent cryptocurrency, taking advantage of the growing frenzy around celebrity and politically-backed meme coins. The scheme, designed to lure unsuspecting investors, underscores the increasing risks in the digital asset space as bad actors exploit popular figures for financial gain.
Fake Saudi Arabia Memecoin (KSA) Emerges
The so-called “Official” Saudi Arabia memecoin (KSA) was announced on February 17 through an X post by the account “SaudiLawConf,” an impostor profile pretending to represent the Saudi Crown Prince.
One of the most glaring red flags was the complete lack of official government communication endorsing the token. Additionally, there were no details on the token’s utility or economic model, raising immediate concerns among seasoned crypto analysts.
Shortly after the fraudulent coin’s launch, the real owners of the X account, the Saudi Law Conference, confirmed via a LinkedIn post on February 17 that their account had been compromised.
“The conference management announces that the official conference account in the X platform (@Saudilawconf) has been hacked and that any content currently published through the account does not represent our opinions or official orientations in any way,” the statement read.
Memecoin Fraud on the Rise
The launch of the fake KSA token follows closely behind another high-profile meme coin controversy involving Argentina’s President Javier Milei. The Libra (LIBRA) token, which was linked to Milei, saw an explosive rise before plummeting over 94% in value within hours after insider wallets cashed out $107 million in liquidity.
According to blockchain expert and author Anndy Lian, investors must conduct thorough due diligence before committing funds to any cryptocurrency project, especially those linked to political figures or celebrity endorsements.
“Transparency is key; if they won’t show their faces, they might just be looking to run with your money,” he added.
Political Memecoins Spell Investor Trouble
Another major warning sign for investors regarding the fake Saudi Arabia meme coin was its launch timeline. Onchain data reveals that the token contract was created on February 10, a full week before its announcement on the Solana-based meme coin launchpad Pump.fun.
Despite the fraudulent marketing campaign, the scam token failed to attract significant investment, amassing only $7,489 in market capitalization since its launch, according to Pump.fun data.
The appetite for politically-backed meme coins surged following the launch of former U.S. President Donald Trump’s “Official Trump” (TRUMP) token on January 18, followed by First Lady Melania Trump’s “Melania Meme” (MELANIA) token on January 19. However, both tokens have significantly underperformed the broader cryptocurrency market, reinforcing skepticism about the longevity of such assets.
TradingView data shows that the Trump token is currently down over 76% from its all-time high, while Melania’s token has plummeted more than 90% since its peak.
Similarly, the Libra (LIBRA) token, previously endorsed by Argentine President Milei, has fallen over 92% from its February 15 peak of $4.56 after insider manipulation caused a staggering $4 billion market wipeout, according to Dexscreener data.
The Growing Threat of Crypto Impersonation Scams
The emergence of scam tokens tied to public figures highlights the urgent need for stronger security measures and investor awareness in the crypto industry. As bad actors continue to exploit high-profile names to drive speculative hype, regulatory agencies may increase scrutiny over such projects to curb fraudulent activities.
For investors, vigilance remains key. Conducting independent research, verifying official endorsements, and avoiding projects with anonymous teams or unclear objectives can help prevent falling victim to crypto scams. The recent wave of fraudulent meme coins serves as a stark reminder that hype alone should never be the basis for investment decisions in the volatile world of digital assets.
