X Sues Bitcoin Account Network Over Alleged Creator Payout Fraud

Social media platform X has filed a lawsuit against the alleged operators of a group of Bitcoin-related accounts, accusing them of manipulating engagement to collect fraudulent creator payouts.

Lawsuit Details

The case, filed in the High Court of England and Wales, names two individuals along with unidentified account operators. X claims the group obtained more than 207,000 British pounds, roughly $278,000, through its now retired creator revenue-sharing program.

According to the filing, six accounts tied to the defendants repeatedly liked, reposted, and published nearly identical content within seconds of one another to create the appearance of genuine engagement. The platform suspended the accounts in August after flagging the activity as manipulation.

How the Scheme Allegedly Worked

Under the former rewards program, creators earned payouts based on engagement generated by other users. X says several additional accounts helped boost activity without being formally enrolled in the program. The company estimates total losses, including investigation costs, at more than $380,000. Attempts to reach the accused for comment were unsuccessful at the time of reporting.