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How an AI deepfake ad of MrBeast ended up on TikTok

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AI deepfakes are getting so good that a fraudulent MrBeast ad slipped past TikTok’s ad moderation technology to end up on the platform.

In the ad, the massively influential creator appeared to be offering 10,000 viewers an iPhone 15 Pro for just $2. In most cases, this would be a clear indication of a scam, but coming from MrBeast, it could actually be believable.

MrBeast (a 25-year-old named Jimmy Donaldson with more subscribers than any other individual on YouTube) got famous by creating increasingly absurd stunt videos in which he gives people free homes and cars with no strings attached (so long as they agree to be in his video). Or, more recently, he’ll ask people from “every country on Earth” to compete for a $250,000 prize in a series of Olympic-like mini games.

So, if you’re not particularly privy to spotting scams, and you’re scrolling TikTok late at night when you’re not thinking straight, it could be within the realm of possibility that MrBeast would buy 10,000 iPhones to give away via TikTok ad. After all, he literally has given away free iPhones before to unsuspecting trick or treaters.

To be charitable, this could explain how the deepfake ad got approved on TikTok. TikTok uses a mixture of human moderation and — ironically enough — AI-aided technology to review ads before they post. So, essentially, TikTok’s AI battled against the AI behind this MrBeast deepfake and lost.

TikTok told TechCrunch that it removed the ad within a few hours of being posted, since it violated TikTok’s advertising policies. TikTok doesn’t wholly prohibit advertisers from using synthetic or manipulated media, but the platform requires that advertisers very clearly disclose if they are using this kind of technology.

TikTok isn’t unique in its use of AI to moderate advertisements. Meta says it relies “primarily on automated technology,” but similar to TikTok, it uses human reviewers to train its AI and sometimes manually reviews ads.

Deceptive deepfakes aren’t new, but as AI becomes especially trendy among investors and consumers alike, the technology is becoming easier than ever to access. While internet famous celebrities like MrBeast appeal to younger generations, older consumers are being fooled too. This week alone, actor Tom Hanks and CBS anchor Gayle King both warned their followers that they’re being deepfaked into fraudulent ads.

“BEWARE!!” wrote Tom Hanks on Instagram. “There’s a video out there promoting some dental plan with an AI version of me. I have nothing to do with it.”

The FTC has already issued warnings about deepfake marketing, but the practice has proven hard to regulate at scale. And as global elections loom, the consequences of this deceptive advertising could become more dire.





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MoneyHash raises $4.5M for its payment orchestration platform serving merchants in MENA

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The payment landscape in the Middle East and Africa (MEA) region is marked by significant fragmentation, with numerous payment providers and methods in each country, evolving regulations and diverse customer preferences. This complexity is further compounded by challenges such as payment fraud, low checkout conversion rates and high transaction failure rates.

Although the COVID-19 pandemic accelerated the adoption of digital payments in the region, infrastructure development remains inadequate. Payment failure rates are three times higher in the MEA region than the global average, and fraud rates and cart abandonment exceed those of other regions by more than 20%. This presents a challenge for merchants, who often perceive payments as a cost and risk center rather than a strategic enabler.

Payment orchestration platforms streamline payment processes for merchants through unified payment APIs. Egyptian fintech MoneyHash, one of such in Africa and the Middle East, has raised $4.5 million in seed investment, money it plans to use to further invest in its technology and growth across the region. This comes two years after the startup secured $3.5 million in pre-seed.

Nader Abdelrazik, co-founder and CEO of MoneyHash, highlights that 10% of all payments processed in the MEA region are digital, placing MoneyHash uniquely for a growth phase that the region will inevitably experience over the next decade. However, navigating this burgeoning payments market will demand patience and a commitment to continuous learning.

As merchants or companies launch their platforms, they often start by collaborating with one or two payment processing providers. As their operations grow and expand into multiple regions, they onboard additional payment providers to meet their evolving needs. However, integrating different payment stacks presents significant challenges. Besides the operational inefficiencies and technical complexities, in-house tech teams may take several weeks to complete these integrations. In Africa and the Middle East, these challenges are amplified by variations in payment methods, currencies and the isolation between countries.

MoneyHash payment integration catalogue. Image Credits: MoneyHash

MoneyHash’s product includes a unified API to integrate pay-in and pay-out rails, a fully customizable checkout experience, transaction routing capabilities with fraud and failure rate optimizers and a centralized transaction reporting hub. This is complemented by tools enabling various use cases such as virtual wallets, subscription management and payment links. Fintechs such as Revio, Stitch, Credrails and Recital are similar players in the payment orchestration space.

In an email interview with TechCrunch, Abdelrazik shared insights into MoneyHash’s collaboration with merchants over the last four years. For one, he claims that payment failure rates across the region vary significantly, and relying solely on averages can be misleading. While the typical figures are around three out of 10 payments failing on average, the reality differs widely among businesses, he said. For some, it may be as low as one out of 10, while for others, it could be as high as five or six out of 10. Additionally, these figures do not include customers who abandon the checkout process voluntarily before making a payment. The CEO also noted that most of its customers don’t know much about the complexity of payments and, many times, are not aware that most leakages they have in payments are fixable.

Furthermore, merchants are expanding much faster than their partner payment service providers (PSPs). These PSPs operate under stringent regulations, making the rollout of new products and customizations slower than the merchants’ growth trajectory. As a result, MoneyHash has intensified its collaboration with PSPs, particularly those catering to enterprises and prioritizing customer requirements.

“Businesses appreciate the large network of integration we have not just for coverage but for expertise. When they know that we executed all these integrations in-house, they appreciate the team’s expertise and depth of knowledge and leverage our team to navigate difficult questions in payments. They know that working with us makes them future-proof,” noted Abdelrazik, who founded MoneyHash with Mustafa Eid.

“That means team expertise is key for us. Most of the time, we hire exclusively with payments and/or tech backgrounds, even in non-technical positions. We saw massive effectiveness in building a team where customers trust their knowledge and expertise in something specialized and critical like payments.”

Following a beta launch in 2022, which garnered the participation of key regional players like Foodics, Rain and Tamatem, MoneyHash introduced its enterprise suite last October, targeting large enterprises. Over the past year, the fintech, which integrates with various payment gateways and processors, including Checkout, Stripe, Ayden, Amazon Pay, Tap and ValU, claimed to have expanded its network of integrations, tripled its revenue and increased its processing volume by 3,000%.

At present, MoneyHash boasts 50 active paying customers. It does not offer free tiers; most customers accessing its sandbox without payment are potential clients in the assessment stage, numbering over 100. The payment orchestration platform levies a combination of SaaS and transaction fees, commencing at $500 + 0.4%. SaaS fees increase while transaction fees decrease significantly for large enterprises due to volume, Abdelrazik explained.

MoneyHash’s seed round was co-led by COTU Ventures and Sukna Ventures, with participation from RZM Investment, Dubai Future District Fund, VentureFriends, Tom Preston-Werner (GitHub’s founder and early Stripe investor) and a group of strategic investors and operators.

Speaking on the investment, Amir Farha, general partner at COTU, said his firm believes that the full potential of digital payments in MEA is yet to be realized and MoneyHash’s platform can catalyze the growth of digital payments across the region, enabling both global and local merchants to tap into new revenue streams. “We are thrilled to renew our support to a team that has consistently demonstrated superior execution, not just in securing top mid-market and enterprise customers, but also in expanding value across the entire chain, even under challenging market conditions,” he added.



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Snowflake CEO Frank Slootman stepping down — and Wall St hates it

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Apparently Frank Slootman, the veteran tech executive, was popular with investors, at least judging from their reaction that he will be stepping down as CEO of Snowflake. The company stock price has plunged more than 24% in after-hours trading on the news.

Slootman will retreat into the role of chairman of the board, while Sridhar Ramaswamy, former head of Google Ads, who came to the company when it bought AI search engine Neeva last year, will take over as chief executive.

Lost in today’s executive shuffle was the company’s earnings. It reported revenue of $738 million, up a healthy 33% year over year with guidance for the next quarter of between $745 and $750 million, with growth of 26-27%.

Slootman came on board in 2019, taking over for veteran executive Bob Muglia, and was charged with taking the company public the following year. Over the last year, the stock has done well, up around 50% (the exact amount is hard to tell with this afternoon’s downward spiral), as many tech stocks recovered from 2022 doldrums.

He was famously well-compensated, with a base salary of $375,000 and a rather attractive stock option. In fact, Fortune reported that the chief executive was making an eye-popping $95 million a month at one point.

He raised eyebrows in 2021 when he told a reporter that diversity shouldn’t override merit, and eventually walked back those comments after a negative reaction from industry peers.

Prior to coming to Snowflake, he spent six years as chairman and CEO at ServiceNow. With all that cash, perhaps he’ll retire and enjoy his money.



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Fintech giant Stripe’s valuation spikes to $65B in employee stock-sale deal

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Payments infrastructure giant Stripe said today it has inked deals with investors to provide liquidity to current and former employees through a tender offer at a $65 billion valuation.

Notably, the valuation represents a 30% increase compared to what Stripe was valued at last March when it raised $6.5 billion in Series I funding at a $50 billion valuation. But it is also still lower than the $95 billion valuation achieved in March of 2021.

While Stripe declined to comment beyond a written statement, a source familiar with the internal happenings in the company told TechCrunch that Stripe and some of its investors agreed to purchase over $1 billion of current and former Stripe employees’ shares.

The company, which counts the likes of Alaska Airlines, Best Buy, Lotus Cars, Microsoft, Uber and Zara as customers, had noted at the time of its last raise that the proceeds would go to “provide liquidity to current and former employees and address employee withholding tax obligations related to equity awards.” That, it added, would result in the retirement of Stripe shares that would offset the issuance of new shares to Series I investors.

A Stripe IPO has been long anticipated and was widely expected to happen in 2024. But with this deal, it appears that an initial public offering may not take place until next year.

In January, TC’s Rebecca Szkutak reported that — in anticipation of that IPO and according to secondary data tracker Caplight — there had been “an absolute flurry of buyers looking to get shares in the company in recent months.” On January 2, a secondary sale closed that valued Stripe shares at $21.06 apiece and valued the startup at $53.65 billion, according to Caplight data.

While Stripe did not name the investors participating in the latest deal, Sequoia Capital Managing Partner Roelof Botha was quoted in Stripe’s announcement and The Wall Street Journal cited Goldman Sachs’s growth equity fund as another backer.

The WSJ also reported that the transaction “is part of a commitment by the Collison brothers to provide liquidity annually to longtime and former employees.” Sources familiar with internal happenings at the company said that commitment is more to provide liquidity “regularly,” and not necessarily annually.

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