YouTuber MrBeast allegedly netted $23m from crypto scams

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As a seasoned crypto investor with over a decade of experience in this wild and unpredictable world of digital assets, I can’t help but feel a mix of disbelief and cynicism upon reading about the allegations against MrBeast and his circle. It seems that the line between entertainment and finance has become increasingly blurred, and it’s not always clear who to trust in this rapidly evolving landscape.

It’s been claimed by a team of digital detectives that MrBeast and associates within his YouTube network stand accused of earning large sums of money, potentially dishonestly, through cryptocurrency transactions.

As a crypto investor, I can’t help but notice the impact of YouTube sensation Jimmy Donaldson, or MrBeast as he’s more popularly known, on the crypto world. With an impressive 320 million subscribers, he stands among the globe’s most influential social media personalities. His platform has become a powerful marketing tool for budding and sometimes controversial cryptocurrency projects.

Specialists hailing from Loock.io consultancy and well-known blockchain analysts such as SomaXBT, who earlier alleged that Donaldson earned approximately $10 million through low-value tokens, are now suggesting that MrBeast exploited his position for the purpose of insider trading to generate profits.

Evidence indicates a prolonged pattern of behaviors such as engaging in insider trading, deceiving investors, and exploiting his position to hype tokens before eventually selling them off in the marketplace.

Loocke research document

Researchers, using on-chain information, found around 50 wallets that seem to be connected to the popular YouTube figure, MrBeast. In the past, MrBeast has made his Ethereum (ETH) account public, for instance, when he bought a CryptoPunk during the 2021 surge of non-fungible tokens (NFTs).

By revealing this information, it enabled onlookers to connect more wallets to MrBeast’s financial system. Notably, several accounts also used the same deposit address associated with the Gemini exchange, thereby suggesting that MrBeast has control over where these funds are directed.

MrBeast’s top earner

According to Loock’s document, SuperVerse (previously named SuperFarm) was among the biggest income sources for MrBeast from his multiple ventures.

The project held an initial coin offering, a crypto term for selling tokens at lower prices to raise funds. MrBeast and his network promoted the protocol on platforms like X and YouTube. Although he has since deleted many promotional posts, MrBeast still follows SuperVerse’s page.

A look into the cryptocurrency transactions and earnings of @MrBeast amounting to approximately $23M, which stemmed from various scams, questionable business practices, and his extensive network – in partnership with @hxnterson, @angelfacepeanut, @somaxbt, and @rfparson.

— Kasper Vandeloock (@KasperLoock) October 30, 2024

SuperVerse’s digital currency skyrocketed 50-fold in worth following its listing, but initial investors encountered limitations due to technicalities in the law. Yet, it is said that MrBeast and his fellow social media influencers, including KSI, made profits by selling tokens to supporters of SuperVerse.

According to Loock’s statement, MrBeast initially put $100,000 into SuperVerse, which later brought him approximately $7.5 million in returns. Reportedly, MrBeast and his associates pocketed around $10 million, accounting for almost half of the total profit Donaldson’s group is said to have made by endorsing questionable cryptocurrency ventures.

It’s become common to see popular figures jump into web3, but more often than not, these entries result in ‘ghost coins’ or failed projects for regular users. This pattern, referred to as “celebrity scams” by crypto insiders, has predominantly occurred on the Solana network, particularly with memecoins. The growth in activity on Solana (SOL) has largely been fueled by these celebrity-backed ventures.

30 SOL-based meme tokens were introduced by well-known figures during the month of June. However, as reported by crypto.news, a large number of celebrity-backed initiatives failed to sustain their momentum following their initial launch.

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2024-10-30 19:23