Revised Gary “Vee” Vaynerchuk Exposed: The VeeFriends Scam

How Gary Vaynerchuk Extracted over $200 Million through Fraud (2021-2023) in the NFT Market

Aug 06, 2024

A revised comprehensive resource library detailing instances of fraud conducted by Gary Vaynerchuk also known as Gary Vee, within the NFT market from 2021 to 2023.

Context

The original article

Gary “Vee” Vaynerchuck Exposed

Mario Longtin

Mar 14

A comprehensive resource library detailing instances of fraud conducted by Gary Vaynerchuck also known as Gary Vee, within the NFT market, along with additional resources highlighting his past behaviours.

Read full story

Article exposing Andy Krainak, President of VeeFriends conducting Insider Trading and Conflict of Interest for over $1M in revenues.

Uncovering Insider Trading and Conflict of Interest: VeeFriends President, Andy Krainak

Mario Longtin

Mar 17

Read full story

This will be my final article on this matter.

To highlight the extent of Gary Vaynerchuk’s fraudulent activities in the NFT market, I will compare his actions with three other notable cases - Impact Theory, Stoner Cats and OpenSea NFT marketplace insider trading - demonstrating how Gary’s conduct is significantly more severe and damaging.

Case #1 - Impact Theory by Tom Bilyeu

Tom Bilyeu learned from Gary Vaynerchuk - it was his playbook. SEC Litigation .pdf

Case #2 - Stoner Cats by Mila Kunis and Ashton Kutcher

Gary Vaynerchuk ran Big Head Club’s social media accounts through Vayner3 (formerly VaynerNFT).

Case #3 - OpenSea Insider Trading by Nathanial Chastain

Nathanial Chastain of OpenSea by United States Attorney’s Office

Pre-Launch - CryptoPunks Manipulation
1.0 Video Evidence of Misconduct
1.1 Securities Fraud
1.1.1 Market Manipulation
1.1.2 Insider Trading
1.1.3 Artificial Demand
VeeFriends Fraudulent Activities
2.1 Securities Fraud
2.1.1 Market Manipulation
2.1.2 Artificial Demand
2.1.3 Price Anchoring
2.1.4 Fraudulent Misrepresentation
2.1.5 Insider Trading
2.1.6 Conflict of Interest
2.1.7 Encouragement of Unregistered Securities
2.2 Consumer Fraud
2.2.1 Sell Shaming
2.3 Intellectual Property Infringement
Fraud with Various NFT Projects
3.1 Securities Fraud
3.1.1 Market Manipulation
3.1.2 Artificial Demand
3.1.3 Price Anchoring
3.1.4 Fraudulent Misrepresentation
3.1.5 Insider Trading
3.1.6 Conflict of Interest
VeeCon
4.1 Securities Fraud
4.1.1 Market Manipulation
4.1.2 Artificial Demand
4.1.3 Price Anchoring
4.1.4 Fraudulent Misrepresentation
4.1.5 Insider Trading
4.1.6 Conflict of Interest
4.2 Consumer Fraud
4.2.1 Breach of Contract
Child Exploitation: Financial Gain & Physical Abuse
5.1 Nastya
5.2 Long Neckie Ladies by Nyla Hayes
5.3 Deleted Tweet
5.4 Video Evidence of Admittance of Physical Child Abuse
Book Games
6.1 Securities Fraud
6.1.1 Market Manipulation
6.1.2 Artificial Demand
6.1.3 Price Anchoring
6.1.4 Fraudulent Misrepresentation
6.1.5 Conflict of Interest
6.1.6 Encouragement of Unregistered Securities
VeeFriends 2
7.1 Securities Fraud
7.1.1 Market Manipulation
7.1.2 Artificial Demand
7.1.3 Price Anchoring
7.1.4 Fraudulent Misrepresentation
7.1.5 Insider Trading
7.1.6 Conflict of Interest
7.2 Consumer Fraud
7.2.1 Sell Shaming
Betrayal: Theft from VeeFriends’ Holders
8.1 Doreen - Art
8.2 Loic - Art
8.3 Jacob - Application (App)
Others Exposing Gary “Vee” Vaynerchuk
9.1 NerdCity’s Video with Evidence
9.2 Podcast by Pyrocynical, Nerd City, Collossal Is Crazy & Dolan Darker
9.3 Other YouTubers and Former VeeFriend Holders
Associations with Scammers
10.1 Tai Lopez
10.2 Logan Paul, Faze Banks, Farokh and Beanie
Closing Statement
Additional Insights: Fraud in VaynerNFT / Vayner3 Projects
12.1 PLP
12.2 Fish Fly Club
12.3 VeeFriends Iconics
12.4 VaynerSports Pass (with his Brother, AJ Vaynerchuk)
12.5 Pepsi Mic Drop NFT
12.6 Budweiser
12.7 7-Eleven
12.8 Roblox
12.9 Johnnie Walker Blue NFT
12.10 Crown Royal
12.11 Bud Light NFT
12.12 Reddit NFTs
12.13 GameStop NFT
12.14 MLB (Candy Digital / Bitski)

1. Pre-Launch - CryptoPunks Manipulation

1.0 Video Evidence of Misconduct

Gary Vaynerchuk’s phone call in a “billionaire group call” reveals insider trading, market manipulation and creating artificial demand, as admitted by Mr. Beast and Logan Paul.

1.1 Securities Fraud

1.1.1 Market Manipulation

Gary’s first public announcement of CryptoPunks

Lies, Deceit. He purchased and hyped Sorare, Chubbies, Hashmasks and so on.

Gary Vaynerchuk’s Public Wallets and CryptoPunks Activity

Gennady

Majority of transfers have been done with DANNY (DannySecure) also known as SeedPhrase.eth

Another name with majority of transfers have been done with MR703

GaryVault - CryptoPunk Transfers

VeeFriendsDev

What is the relationship with SeedPhrase.eth (DannySecure) and MR703?
Did Gary purchase these CryptoPunks or is he simply holding them?

More associations with Seedphrase (Danny)

1.1.2 Insider Trading

Beanie, a known fraudster in the NFT market, raising suspicions

Admittance of Insider Trading with Gary Vaynerchuk

According to X and MrBeast, WuTangClan on Opensea does appear to match MrBeast description in his revealing video

In the video above, MrBeast also mentions how Gary Vaynerchuk would call him about once per month, urging him to invest in various NFT projects to participate in pump and dump schemes, contributing to insider trading. Some of the projects involved include, but are not limited to, Hashmasks, Creature World, Koala Intelligence Agency and mfers.

More Evidence of Andy Krainak’s Insider Trading & Conflict of Interest with Gary Vaynerchuk

drock91 Gary’s employee and videographer at this time

TylerSchmitt Gary’s Employee, General Manager of One37pm 1 of 2

Tyler Schmitt Gary’s Employee, General Manager of One37pm 2 of 2

J1mmy.eth’s involvement with Gary Vaynerchuk

Mr703 - One of the individuals primarily responsible for Gary’s Punk ownership

DannySecure - also known as SeedPhrase.eth also one of the individuals primarily responsible for Gary’s Punk ownership.

Gary Vaynerchuk ended up hyping, encouraging and pushing Sartoshi’s project, mfers, even adding it to the Book Games Exchange, where you could burn a few Book Games NFTs in exchange for one mfer NFT.

CryptoPunks OGs who also Purchased VeeFriends

1.1.3 Artificial Demand

Gary gloating about his coordinated pump

The CryptoPunks pump coincides with Gary Vee’s pump. Chart by Nansen

2. VeeFriends

2.1 Securities Fraud

2.1.1 Market Manipulation

Gary Vaynerchuk over promising, lying, deceit, encouraging his special Gift Goat NFTs - implying that they will receive a vehicle in their driveway.

This is how Gary attempts to increase engagement on his socials - by running a giveaway although the winners are predetermined and already chosen.

Deceiving & Price Setting his own tokens on a whim, influencing the perceived value of the tokens without a legitimate market-driven basis

Gary advising investors to hold and acquire more VeeFriends Series 1 during a market downturn, despite knowing the price would significantly decline. This demonstrated manipulation to influence market behaviour for personal gain.

Creating Artificial Scarcity and then flooding the market, impacting the market value of VeeFriends Series 1

Older message describing the manipulative and fraudulent situation.

Manipulating Investors expectations and Creating Artificial Demand by promising future value that may not materialize.

Attempting to create a positive perception of VeeFriends Series 1, manipulating public sentiment and overlooking broader issues with the investment’s overall performance

Given Gary’s past behaviours with NFTs, this could suggest he might be using similar tactics to manipulate the perceived value of his physical products, creating an illusion of demand and influencing market prices.

Early VeeFriends Investor, supported by blockchain evidence. Manipulating market activity and demand by controlling a significant portion of sales which creates inflated perception of the project’s success

Gary purchasing multiple of his own NFTs at the floor price, with additional discounts due to earned royalties. Manipulating the market by controlling pricing and creating an illusion of demand, which can influence other buyers and market conditions.

Gary’s Vault owns 960 VeeFriends Series 1

Gary’s public wallet Gennady owns another 188 VeeFriends Series 1

Total VeeFriends Series 1 owned by Gary Vaynerchuk 1,148 from 2 of his public wallets as of August 1st, 2024.

Gary selling his special “GOO” tokens for double the market value at this time, this artificially influences the perceived value of the tokens and manipulate buyers expectations.

Gary sold his 1st VeeFriend 1 G.O.O. NFT for $193,900 USD or 55.555 WETH – double the highest last sale.
He sold 9 more from ~$104,700 to ~$366.500 USD by August 7^th, 2021.
By setting inflated reference points, he created artificial perceived demand and value.
The $193,000 price point serves as an anchor – price is reasonable or “undervalued”.
By actively promoting and pumping his tokens as “special” – artificially inflating the perceived value within the market, interfering with the free and fair market for his own benefit.
This presents a conflict of interest because has a responsibility to act in the best interests of the community and holders. He’s prioritizing self-gain over their well-being.

The first 16 out of 23 VeeFriends Series 1 G.O.Os were purchased by two accounts. 1D055F (10) and AidanTag (6).

Andy Krainak, President of VeeFriends, sold a free VeeFriends G.O.O. from his secondary wallet for a profit of about $99,000 USD or 28.55 WETH on June 10th, 2021, just a week after the project sold out.

Andy Krainak’s Wallet

2.1.2 Artificial Demand

Gary’s promotion of future floor prices and long-term commitment is aimed at creating artificial demand for VeeFriends Series 1 by setting expectations for future value, regardless of the actual market or project developments.

This is an effort to create artificial demand by publicly presenting these products at certain price points, potentially driving up perceived value and influencing buyer’s willingness to pay.

Gary created artificial demand by holding a significant amount of NFTs, manipulating the market to maintain and increase perceived value.

Gary selling his special “GOO” tokens for double the market value at this time. Gary’s creating the illusion of increased demand and exclusivity, driving up interest and perceived value.

2.1.3 Price Anchoring

Gary and Team controlling half of the sales indicate attempts to anchor prices at higher levels by dominating a significant portion of the market.

Gary purchasing multiple of his own NFTs at the floor price, with additional discounts due to earned royalties. Influences the overall market pricing and anchor the perceived value of the NFTs

Gary Vaynerchuk, the founder, owns 1,147 (959 + 188) VeeFriends Series 1 Tokens from 2 of his public wallets

2.1.4 Fraudulent Misrepresentation

Gary claiming that only CryptoPunks are being traded, while actually selling them outright for ETH. Misleading investors and consumers about the nature of the transactions and the value of the tokens.

Gary claiming he won’t issue any more tokens after his initial launch of 10,000, then proceeding to launch over 150,000 more tokens 6 to 8 months later. This demonstrates clear misrepresentation and breach of trust with investors and consumers.

Gary’s sales of special “Goo” tokens for double the market value. They were marketed as having special value and utility, and Gary’s pricing does not align with these claims, his actions contradict that representation

2.1.5 Insider Trading

Andy Krainak (President of VeeFriends - Gary’s Employee)

Andy, President of VeeFriends selling his free VeeFriends he received from his employer Gary Vaynerchuk

Andy Krainak’s secondary Wallet selling his free VeeFriends G.O.O he received from his employer Gary Vaynerchuk

AJ Vaynerchuk (Brother)

AJ dumping his free VeeFriends he received from his brother Gary Vaynerchuk

Lizzie Vaynerchuk (Sister)

Liz dumping her free VeeFriend she received from her brother Gary Vaynerchuk

Adam Ripps (VeeFriends, Head of Collectibles/ Brand Strategist - Gary Vaynerchuk’s Employee)

Gary Vaynerchuk is attempting to direct new investors and consumers to purchase specific NFTs, manipulating the market by steering buyers towards certain assets, either to inflate the prices, or create demand. Gary and Adam have a financial stake in which they benefit directly from (conflict of interest). Gary and his employee are providing “white glove service” to direct investors without disclosing their financial interests or potential risks - especially since they are presenting the NFTs as investments than they actually are or omitting important information that would influence a buyer’s decision. They are aware of privileged information and upcoming events that could affect the value of these NFTs, and they are directing investors based on that knowledge (insider trading).

Market Manipulation, Fraudulent Misrepresentation, Price Anchoring, Creating Artificial Demand, Insider Trading, Conflict of Interest

Matt Higgins (Gary Vaynerchuk’s Business Partner)

Matt also sold a variety of projects that Gary Vaynerchuk pumped, including but not limited to, VeeFriends, VeeFriends 2, VaynerSports Pass, Wolf Game, Wrapped Strikers, Tom Sach’s, Flower Girls, SupDucks, Curio Cards, World of Women, CryptoZoo by Logan Paul who is associated with a variety of fraudulent activity - Logan has yet to refund everyone.

Here’s an article confirming Matt Higgin’s Public Etheruem Wallet

SEC - RSE Collection - Matt Higgins association with Gary Vaynerchuk prior to VeeFriends

Matt Higgins long standing relationship with Gary Vaynerchuk

2.1.6 Conflict of Interest

Gary leveraging his VeeFriends Discord to sell Wine from his other Company.

2.1.7 Encouragement of Securities

This may encourage further investment and create a misleading sense of success. Coupled with the presentation of the NFT project as akin to an IPO with financial rewards, underscores the misleading nature of the investment opportunity.

By January 2022, Gary stopped calling his VeeFriends Series 1 NFTs as investments

Gary Vaynerchuk sold us on the idea of Investing into VeeFriends IPO - we would receive royalties and benefits

Gary Vaynerchuk claiming we are investing into his IPO VeeFriends and would receive future financial benefits

2.2 Consumer Fraud

2.2.1 Sell Shaming

Gary Vaynerchuk publicly calling out individuals, telling them to delist their NFTs, and using derogatory remarks and threats about financial decisions. He’s attempting to intimidate and shame individuals into compliance, influencing market perceptions and actions by targeting analysts.

2.3 Intellectual Property Infringement

Characters that are very similar to the original art by Karen

List of Books by Karen Ritchie and Laura Love Published in 2018-2019 on Amazon.com

NFT Update bringing awareness of potential art infringement

3. Fraud with Various NFT Projects

3.1 Securities Fraud

3.1.1 Market Manipulation

Examples of NFT projects covered in the original article that were subject to Gary Vaynerchuk’s fraudulent activities can be found here.

A List of NFT projects covered in the original article that were pumped and dumped by Gary Vaynerchuk.

Encouraging Others Not To Sell While Gary Takes his Profits - Market Manipulation, Pump & Dump Scheme & Sell Shaming example

Over $100,000 in revenues Pump & Dump Scheme

A day after earning over $100,000, he claims he didn’t dump - when we can in fact verify on the blockchain

Gary has dumped multiple projects from his Public wallets - imagine his private ones

Even before NFTs, he’s been pumping and dumping - it’s in his nature, his character, it’s what he does in everything that he does

Ironic Tweet. Virtue Signalling, Deflecting Attention. Attempting to establish Authority. Manipulative Perceptions. Creating False Narratives.

3.1.2 Artificial Demand

Gary dumping his Purrnelopes Country Club NFTs.

3.1.3 Price Anchoring

In the Koala Intelligence Agency Discord, Gary was advising everyone not to sell for less than 2 ETH. The project eventually reached around 1.3 ETH before the market correction.

Koala Intelligence Agency NFT project Gary Vaynerchuk Promoted Heavily

3.1.4 Fraudulent Misrepresentation

Gary Vaynerchuk direct securities violation - fraudulent misrepresentation

3.1.5 Insider Trading

Article covering Gary Vaynechuk and Andy Krainak Insider Trading

Not only the president of VeeFriends is guilty, Gary’s brother AJ and sister Liz are also guilty.

AJ Vaynerchuk

AJ Vaynerchuk dumping Brain Vomit Garden

AJ dumping Flyfish Club (another NFT project by his brother Gary)

AJ dumping Moonbirds (prior associations with the known grifter Kevin Rose before NFTs)

AJ dumping SupDucks

AJ dumping Chromie Squiggle

AJ dumping Ringers

Liz Vaynerchuk-Novello

Liz Dumping her Free VeeCon tickets - also example of Gary sweeping his own NFTs to create artificial demand, and price anchor the perceive value of his conference

3.1.6 Conflict of Interest

One of countless examples of how Gary’s employees and family front run his public announcements in order to secure the best pricing - this is done privately, which implies insider trading and conflict of interest

4. VeeCon

4.1 Securities Fraud

4.1.1 Market Manipulation

Gary Vaynerchuk Purchasing his own VeeCon Conference NFTs

Gary creating a sense of urgency and scarcity by claiming there’s only 174 tickets left, despite this being the number of NFTs currently listed, not the actual total available. Market manipulation, artificial demand, fraudulent misrepresentation, and utilizing manipulative psychological tactics (FOMO).

Fraudulent misrepresentation, Market Manipulation, Artificial Demand - exaggerated claims.

Investors burning their Book Game NFT Tokens for a VeeCon NFT token.

4.1.2 Artificial Demand

GaryVeeMints - another one of Gary Vaynerchuk’s Wallets purchasing his own VeeCon conference NFTs

4.1.3 Price Anchoring

Gary Vaynerchuk claiming that a VeeFriends series 2, and 3 VeeCon NFTs can average 3.5ETH each would total 14 ETH, the floor price of a VeeFriend series 1 at that time, right before the market correction.

4.1.4 Fraudulent Misrepresentation

Market Manipulation, Artificial Demand, Fraudulent Misrepresentation

4.1.5 Insider Trading

Andy Krainak (President of VeeFriends)

Andy dumping his VeeCon NFT conference tickets

AJ Vaynerchuk (Gary’s brother)

Lizzie Vaynerchuk (Gary’s sister)

4.1.6 Conflict of Interest

Gary Vaynerchuk’s purchase and allocation of his own NFTs represent a conflict of interest. By holding a substantial portion of the supply, he can manipulate the market value and create artificial scarcity, ultimately impacting the overall demand and value of the NFT conference tickets.

One of Gary’s public wallets contains 1,128 VeeCon 2024 NFT Tickets

Gary kept 30 VeeCon 2022 Tickets for himself

According to one of his public wallets - he keep 30 for himself at the minimum

Gary Vaynerchuk owns a total of 1,162 VeeCon conference NFTs - he does mostly give these away for free, if you promote Gary’s VeeFriends project on social media, in order to fill his conference - some individuals do end up selling.

4.2 Consumer Fraud

4.2.1 Breach of Contract

The separation of VeeCon conference tickets from NFTs deviate from the original agreement. Investors were mislead into believe they were purchasing something exclusive, but Gary Vaynerchuk undermined his project’s value for personal gain by releasing multiple projects with royalties - despite promising not to. His actions reflect his statement that he will “say anything for the sale.”

5. Child Exploitation: Financial Gain & Physical Abuse

5.1 Nastya

Article by RedLion News covering the misconduct.

Gary Encouraging his Child Exploitation NFT Project by ChrisCuningham on X

ZachXBT covering the misconduct.

Trying to exploit children – vested interest

Philion’s YouTube video reviews evidence of Nastya’s NFT Rug Pulled Project.

5.2 Long Neckie Ladies by Nyla Hayes

Introduction to Nyla Hayes by Time, 12 year old artist behind the Long Neckie Ladies NFT Project.

Despite Gary’s involvement in pumping and dumping, profiting, and other fraudulent activities, he still managed to persuade her to speak at VeeCon. I’m curious if she was even aware of his actions.