MarketsX has initiated legal action against Vivek Kumar Sen and Zmyang Sherpa for allegedly running fraudulent bitcoin news accounts to exploit creator rewards from the platform.

Legal Action Against Users Over Fake Bitcoin Accounts

By Omkar Godbole|Edited by Jamie Crawley45 minutes ago2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on UK High Court of Justice (Shutterstock)SummaryShow
  • X has filed a lawsuit in London against Vivek Kumar Sen and Zmyang Sherpa, claiming they operated a network of fraudulent bitcoin news accounts that wrongfully garnered at least 207,000 pounds from its creator fund.
  • The nine identified accounts reportedly shared nearly identical financial headlines in rapid succession and utilized coordinated interactions to simulate user engagement.
  • Following the termination of these accounts on August 18, X is pursuing the return of creator earnings and damages for alleged fraud and conspiracy.

X has taken legal action against two individuals for allegedly creating a series of fake bitcoin news accounts to exploit payouts from its creator fund.

The lawsuit names Vivek Kumar Sen and Zmyang Sherpa as the primary defendants, with legal representation from the firm Lewis Silkin LLP. The case involves a disputed amount of at least 207,000 pounds (approximately $277,000) in creator fund payouts, with potential additional costs for damages from ongoing investigations.

The lawsuit identifies nine accounts associated with the alleged operation: @Vivek4real_, @Bitcoin_Teddy, @saylordocs, @TrendingBitcoin, @Kalshibacktest, @PolyBackTest, @BTC_Vibes, @MrSuperBitcoin, and @Laserlump. These accounts were noted for posting fake “breaking” news headlines that often mirrored each other and appeared on the platform within seconds.

The majority of these posts made unverified claims about major financial institutions to attract attention, such as asserting that the CEO of Goldman Sachs was advocating for a crypto bill or that Citibank had acquired $12.6 million in bitcoin.

Furthermore, the lawsuit alleges that the defendants engaged in activities that artificially inflated engagement by repeatedly liking, replying to, and reposting these posts.

The @Vivek4real_ account was reportedly involved in expanding the scheme by offering paid services for engagement manipulation, including soliciting the purchase of additional high-follower accounts. The lawsuit cites a message in which Sen purportedly asked a third party about acquiring their account, expressing concern over encrypted chat to avoid detection by X.

X terminated all accounts associated with this fraudulent network on August 18, citing “coordinated revenue sharing fraud and platform manipulation.”

Payments to these accounts were made through shared Stripe accounts with inconsistent names, and they were connected by common devices and login credentials. For instance, one account's Stripe payment information was linked to “Stefan Mann,” while the associated bank account and email were registered in Sen’s name.

X is now seeking the return of the creator payouts along with compensation for fraud and conspiracy. The particulars of the claim were signed by X’s Senior Legal Directors, Diego de Lima Gualda and Adam Mehes.

Newsletters

Crypto Daybook Americas - The latest moves in crypto markets, in contextMarket analysis for crypto traders and investors.PreviewSign upBy signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy.Bitcoin NewsLatest Crypto News
  1. 1Bitcoin hits $85,000 as short squeeze forces out $648 million of bearish bets31 minutes ago
  2. 2Crypto enjoys bullish bounce post-Fed rate hike: Crypto Week Ahead1 hour ago
  3. 3Hana Bank issues South Korea’s first digital bond using Euroclear’s blockchain2 hours ago
  4. 4Live updates: Bitcoin hits $85,000 as short liquidations hit $300 million in an hour2 hours ago
  5. 5Kalshi faces ‘fake crypto volume’ allegations as critic flags identical $5,500 trades4 hours ago
  6. 6Bitcoin rises above $81,000, while NEAR jumps 23% on Zcash swap traffic6 hours ago
  7. 7Bitcoin’s price has cleared a key hurdle that has historically preceded major bull runs7 hours ago
  8. 8Crypto platform Gemini’s stock is down 80% from its IPO. That’s reviving takeover speculation20 hours ago
  9. 9Coinbase, Robinhood, Circle could be early winners of SEC's tokenized-stock push, analysts say23 hours ago
  10. 10Crypto traders braced for a total wipeout this week but Bitcoin had other plans23 hours ago
Latest Research

The Definitive Stablecoin Landscape Series: Asia Pacific

The Definitive Stablecoin Landscape Series: Asia Pacific

As stablecoins move into regulated finance, APAC is becoming a key proving ground. This report maps the region’s rules, use cases, and RLUSD’s role.

By CoinDesk ResearchSep 15, 2026Commissioned byRipple

As stablecoins move into regulated finance, APAC is becoming a key proving ground. This report maps the region’s rules, use cases, and RLUSD’s role.

Why it matters:

As stablecoins move into regulated finance, APAC is becoming a key proving ground. This report maps the region’s rules, use cases, and RLUSD’s role.

View Full ReportMore From Markets

Bitcoin hits $85,000 as short squeeze forces out $648 million of bearish bets

Crypto enjoys bullish bounce post-Fed rate hike: Crypto Week Ahead

Kalshi faces ‘fake crypto volume’ allegations as critic flags identical $5,500 trades