Market Times:

London:

New York:

Singapore:


Popular YouTuber MrBeast Under Investigation for Netting $23M on Insider Trading

The latest investigation shows that Mr. Beast is deeply involved in a chain of crypto theft, including inside trading and scam coin promotion.

MrBeast

An investigation by pseudonymous on-chain analysts Hunter and Kasper Vanderloock, supported by some external bodies, shows that famous YouTuber James Stephen, aka MrBeast, is allegedly involved in insider trading, among other illegal activities.

The October 29 report revealed that about 50 wallets allegedly tied to Stephen have netted $23 million from several crypto frauds. The investigation further disclosed a long history of insider trading, misleading investors, promoting tokens, and later dumping them on the market using his influence, tied to the famous YouTuber.

MrBeast Allegedly Involved in Financial Fraud

The investigators accused MrBeast of a chain of blockchain crimes, which has led to investors losing millions of dollars and him and his influencers gaining substantially. Notably, the Look.io investigation team started the inquiry using a publicly disclosed Ethereum wallet address, which he used to purchase a non-fungible token, CryptoPunk, in 2021.

A closer look at the wallet shows a deep connection to several pump-and-dump shitcoins, which MrBeast has profited from. The investigation revealed that his most significant profit came from the Ethereum-based SuperVerse token.

Allegedly, MrBeast bought the token with just $100,000 during its early stages, and he and his influencer friends promoted it using their X (formerly Twitter) and YouTube handles. After the SuperVerse had surged over 500%, MrBeast sold at a $7.5 million gain.

Furthermore, the famous YouTuber has several ties with major exchanges like Gemini and Binance, utilizing them for his illegal activities. His Binance wallet alone has recorded a transaction worth over $13 million.

Meanwhile, MrBeast’s crypto fraud allegations are not alone; he was also accused of several other illegal dealings, including running illegal lotteries, hiring employees with questionable track records, and making claims about fake videos.

Increasing Crypto Involvements Among Celebrities

It bears mentioning that the number of celebrity-endorsed crypto scams is drastically increasing, sparking concerns about the industry’s vulnerability to exploitation. The involvement of celebrities in crypto crimes highlights the need for greater regulation and investor education

One of the latest celebrity scams involved American model Amber Rose, who cashed out $350,000 in a pump-and-dump Solana-based Muva meme coin scam. Another celebrity musician, Davido, earned over $470,000 from the same illegal scheme.

Meanwhile, reports have shown that most meme coins promoted by celebrities usually take a downward curve in the near term. According to the CoinTab report, most of them have depreciated over 94% from their all-time high.

Elendu Benedict

Elendu Benedict is a professional writer with sheer competence in crypto-related journalism. With a background in Engineering, Benedict specialises on news related to ETFs, market analysis, and macroeconomic policies that affects the crypto market.