When entrepreneur Erik Bergman pledged $1 million to a water charity earlier this year, it looked like another example of his well-publicized philanthropic efforts. Instead, it became the opening move in a sophisticated scam that ultimately cost him $1.25 million
When entrepreneur Erik Bergman pledged $1 million to a water charity earlier this year, it looked like another example of his well-publicized philanthropic efforts. Instead, it became the opening move in a sophisticated scam that ultimately cost him $1.25 million.
Rather than retreating in silence, the Catena Media co-founder chose to speak openly about the ordeal. His decision to share, he says, was about stripping away the shame of financial loss and helping others avoid similar traps.
A Scam Rooted in Generosity
Bergman, known both for his Catena Media legacy and his online entrepreneurial persona, first encountered what appeared to be an appeal supporting Team Water, a project dedicated to building wells in Africa. The campaign looked legitimate, even featuring supposed endorsements from YouTube star MrBeast (Jimmy Donaldson) and former NASA engineer Mark Rober.
Convinced, Bergman pledged $1 million, a donation that MrBeast himself appeared to share on social media. What followed was an invitation to a seemingly exclusive WhatsApp group populated by celebrities like Adin Ross and Tobi Brown, along with gaming executives. The conversations felt natural and casual, building credibility day by day. But none of the group’s members were real.
The Crypto Trap
Once trust had been established, the “celebrities” pitched an exclusive pre-launch token on Coinbase, framed as a reward for high-net-worth donors. With peer pressure mounting, Bergman sent $500,000, later adding $750,000 after being told the token had soared in value.
Only later did red flags emerge: supposed American influencers texting from UK numbers, and eventually, confirmation from Donaldson himself that the scheme was entirely fabricated.
The scam mirrors a wider trend: fraudsters exploiting crypto hype and celebrity likeness. In June, the BBC reported a more than 40% surge in crypto scams in the UK, with fake endorsements among the most common tactics.
From Loss to Lesson
Bergman describes the financial hit as painful, but says the emotional toll was greater. He compared it to a smaller scam he suffered in his twenties — one he hid for years out of embarrassment. This time, he chose the opposite path.
“I decided to be honest from the start,” he explained in a candid video. “Shame grows in secrecy, but it loses its power when shared.” He first confided in his wife, then family and close friends, navigating the grief with their support.
Though marked by tears and frustration, the process helped him avoid the cycle of self-blame that often traps scam victims.
Respect for True Philanthropy
Despite the deception, Bergman insists his respect for Donaldson and Rober remains unchanged. His $1 million donation to Team Water was real, he notes, and still carries meaning, even if overshadowed by fraud.
To his followers, he framed the experience as more than a financial misstep:
“If my story prevents even one person from clicking a fraudulent link or sending money to the wrong account, then it was worth sharing.”
