The YouTuber MrBeast accused of insider trading: $23 million defrauded

MrBeast, famous YouTuber with 320 million subscribers, has been accused of insider trading by some crypto experts.

The famous character, known to friends as James Donaldson, allegedly executed fraudulent “Pump and Dump” schemes on various memecoins in the crypto sector.

In total, over 50 crypto wallets have been identified from which MrBeast would have earned 23 million dollars on the backs of his followers.

Below are the details of this sensational bull and bear story.

Accusations of insider trading for MrBeast: 23 million dollars thanks to memecoin

The Youtube superstar MrBeast has been accused of insider trading for having artificially manipulated the price of some cryptocurrencies he himself promoted.

Everything began when, about two weeks ago, the blockchain researchers from Loock.io and SomaXBT highlighted ambiguous trading activities by the character.

In this initial phase, it was publicly shown how Donaldson would have earned 10 million dollars from the sale of some low-capitalization memecoin.

The YouTuber had indeed invited their community to purchase various coins through an IDO offering, which then lost value on the market.

After a few days, analysts discovered the existence of a real fraudulent scheme made of social media promotions and “Pump and Dump”.

Overall, it is said that by leveraging his online visibility, MrBeast has made profits of 23 million dollars through insider trading.

The process of MrBeast’s insider activities is more or less always the same, and they have been going on since 2021, the year in which the YouTuber entered the crypto world.

First, he created memecoin and purchased large quantities of tokens, then he promoted the same assets through his communication channels to influence the market.

Once a good profit was reached, he sold almost all of his holdings, causing the price to crash.

The same followers who support him and contribute to his success have been used as exit liquidity to monetize the true financial truffa.

We point out in any case that it is still an informal accusation, while the SEC still has to investigate the alleged insider trading maneuvers of MrBeast.

The manipulation techniques of the YouTuber: over 50 crypto wallets uncovered

Based on the findings from the research by Loock.io and SomaXBT, the insider trading activities of MrBeast would have involved more than 50 crypto wallets different.

The investigations highlight a dense network of transactions that include many low-capitalization memecoins.

An intentional well-orchestrated operation comes to light, made of recurring manipulations and not attributable to a one-time participation.

The most profitable currency from which Donaldson would have benefited would be Superverse (SUPER), with an estimated revenue of 11.45 million dollars.

Discovered other illicit million-dollar gains on the tokens ERN, PMON, STAK, and AIOZ, for a sum that exceeds a total of 23 million dollars

All the profits of MrBeast have been liquidated through centralized exchanges like Binance U.S, Gemini, Blockfi, Mexc, and even FTX.

Binance and Gemini emerge as the platforms with which the YouTuber would have interacted the most.

Cryptographic analysts started from MrBeast’s main wallet, from which he himself admitted to having purchased a CryptoPunks for 50 ETH in 2021.

From here they found hundreds of links with the above-mentioned cryptocurrencies, with clear evidence of insider trading.

As reported by Loock.io, at the beginning of 2021 the YouTuber launched a strong promotional campaign for SUPER, of which he himself was the holder of 1 million tokens.

In the following months, the character obtained various unlocks with a parallel increase in the currency’s quotations of over 50 times.

Subsequently, the character sold all of his bags in multiple tranches, leading to a violent devaluation to the detriment of small investors.

In general, all the tokens he sponsored are now losing about 99% of their value since the launch day, reflecting the scam nature of this operation.

Attention to investment advice from famous personalities

The story of MrBeast highlights the widespread trend among celebrities to participate in the world of investments through insider trading activities.

Many times artists, content creators, and influencers have leveraged their popularity for these purposes.

The same celebrities are always the first to buy before the bull of prices and the first to sell before the bear crash.

Almost all the time these assets completely lose value, having no functionality other than that of the manipulative scheme.

At this point, there is nothing left but to hope that MrBeast compensates his community, either through a monetary prize or with one of his entertaining Youtube videos.

Jokes aside, it is appropriate to bring attention to these reckless behaviors and prevent the same mistakes from being repeated by the retail public.

NEVER follow a financial advice from your favorite celebrity, especially if they have never shown interest in the world of investments.

Most of the time the message is conveyed solely and exclusively for personal, promotional, or economic gain.

In the last year, mainstream figures have made headlines by entering Web3 through numerous scams organized within the blockchain Solana.

The SOL ecosystem has witnessed a surge in activity from meme coins linked to names of famous personalities, without, however, recording respectable performances.

Consider that just in June over 30 memecoins were launched following this logic.

All users who invested in it have suffered significant losses, despite the initial strong enthusiasm.

Reports indicate that half of these coins have dropped by 99%, while another seven have dropped by at least 90%.