Controversial YouTuber Ice Poseidon has been accused of scamming fans with a crypto project known as CXCoin.
Ice Poseidon, real name Paul Denino, raised the value of a new cryptocurrency, CXCoin, by enlisting the help of his fans. He purportedly persuaded skeptics and doubters that this would be a long-term project, but he sold all of his currency, causing the remaining currency held by supporters and investors to drop in value. This is referred to as a pump and dump scheme.
Denino appeared to confirm the allegations in an interview with Coffeezilla, in which it is unclear whether he was aware he was being recorded, saying he grabbed 55% of the profits, with his developers collecting the remaining 45%.
"Part of the responsibility is on them as well for putting too much emotion into it," Denino said of his fans. "I could give the money back - it is within my power. But I'm gonna look out for myself and not do that. I don't know what else to say - that's just the most honest answer."
Denino allegedly pocketed over $300,000, with $200,000 going to developers, according to Coffeezilla.
Denino appears remorseless in a call with the two, seemingly blaming the whole thing on his investors. Streamers and internet personalities can obviously leverage their relationships with their fans, just like any celebrity, so criticizing fans for their engagement with the parasocial dynamic feels disingenuous.
Denino allegedly promised to repay $155,000 after learning that Coffeezilla would be releasing a story on the incident, but only $40,000 has been repaid thus far, according to Coffeezilla
Ice Poseidon was a popular Twitch streamer in the mid-2010s, coming to stardom around 2015 for his coverage of Jagex's MMORPG Old School Runescape. His time on the platform had been perilous. He was suspended multiple times before Twitch permanently banned him in April 2017 for being swatted on a plane. It was supposedly a prank he concocted with his followers to get police summoned on an American Airlines flight to Phoenix for a bomb threat. After Mixer was shut down in June 2020, Ice Poseidon went to YouTube.
In July 2021, Coffeezilla exposed the Bitcoin scam perpetrated by former FaZe clan member Frazier Khattri. Three members were suspended as a result of the incident, and Khattri was fired. He has subsequently apologized and stated that he would like to refund the stolen funds, but not before threatening to sue Coffeezilla over the video exposé.
For the time being, it appears that Ice Poseidon will continue to keep the funds of individuals who invested in CXCoin, claiming that he intends to invest the funds in various cryptocurrencies.
