X Sues Bitcoin Influencers for Alleged Bot Army Fraud

Social media platform X has filed a lawsuit against two UK-based Bitcoin influencers, alleging they used a network of bot accounts to fraudulently siphon funds from the platform’s creator payout program.

The complaint, filed in a California federal court, accuses the individuals of operating at least six coordinated accounts that artificially inflated engagement to qualify for and collect payments from X’s now-defunct Creator Revenue Sharing Program. The platform alleges the scheme resulted in losses of at least $278,000.

X claims the defendants used automated software to create fake interactions, misleading the platform’s systems into believing the accounts had genuine, popular followings eligible for revenue sharing. The lawsuit seeks damages and a permanent injunction to stop the alleged activity.

The legal action highlights ongoing challenges for social media platforms in combating fraud within creator monetization programs, particularly those that can be exploited through automated means. The case specifically ties the alleged fraud to prominent figures within the online Bitcoin community.