Saudi Crown Prince Impersonated by Scammers to Launch Fake Memecoin

A recent wave of cryptocurrency scams has seen fraudsters impersonating high-profile figures to launch misleading tokens, and the latest targets are investors hoping to capitalize on the ongoing hype around celebrity-backed memecoins.

This time, scammers posing as Saudi Arabia's Crown Prince Mohammed bin Salman—who also serves as the country’s prime minister—have launched a fraudulent memecoin dubbed the “Official” Saudi Arabia Memecoin (KSA).

The suspicious token made its debut on February 17, announced through a post on X (formerly Twitter) from an account called "SaudiLawConf."

This account, however, was later revealed to be fake, with no official backing from the Saudi government. The absence of any government communication or details about the token's utility and tokenomics was the first red flag that raised concerns among cryptocurrency experts.

Just hours after the token's release, the Saudi Law Conference, the original owners of the hacked X account, confirmed on LinkedIn that their account had been compromised by impersonators.

A statement from the conference clarified that the content shared through the account was not representative of their official stance or opinions. This confirmation highlighted the deceptive nature of the scam, with criminals attempting to capitalize on the growing retail interest in memecoins.

The KSA memecoin launched just days after the infamous rise and fall of the Libra (LIBRA) token, which was endorsed by Argentine President Javier Milei. The LIBRA token saw its value plummet by more than 94% within hours, following a massive liquidity dump worth $107 million. This pattern of high-profile scams has left many investors wary, urging them to conduct thorough research before investing in any new cryptocurrency projects.

Anndy Lian, a blockchain expert and author, emphasizes the importance of due diligence when navigating the memecoin space. "Don’t just throw your cash at something because it’s got a catchy name or claims to be ‘official.’ Check who’s behind the project. If the team is all mysterious or you can’t dig up any real info on them, that’s a red flag waving right in your face,” Lian advises. He warns that if a project lacks transparency, it may be a sign that it’s designed to defraud investors.

Another warning signal regarding the KSA memecoin was the timing of its launch. While the token was officially announced on February 17, the contract for the memecoin had already been created on February 10, a week earlier, on the Solana-based memecoin launchpad Pump.fun. Despite the early launch, the KSA token failed to gain significant traction, with its market capitalization remaining a modest $7,489, according to Pump.fun data.

The rise of celebrity-backed memecoins has been a significant trend in recent months, with figures like U.S. President Donald Trump and First Lady Melania Trump joining the craze. Trump's "Official Trump" memecoin debuted on January 18, followed by Melania Trump's "Melania Meme" token the next day. However, despite the initial attention, these tokens have underperformed, with the Trump coin down over 76% from its all-time high and the Melania coin down more than 90%, according to TradingView data.

The recent scams involving public figures like Milei and the Trumps have raised concerns about the ethics and risks involved in endorsing memecoins. With the market full of speculative tokens, investors are advised to be cautious and avoid making impulsive decisions based on celebrity endorsements or flashy names.