Popular YouTuber MrBeast allegedly made over $10 million from cryptocurrency pump-and-dump schemes, according to blockchain sleuth SomaXBT.
According to SomaXBT, MrBeast, whose real name is Jimmy Donaldson, invested in several low-cap crypto projects and used his influence to promote them, only to sell off his holdings after their value surged.
A crypto pump-and-dump scheme involves artificially inflating the price of lesser-known coins by promoting them heavily, often through influencers or coordinated efforts.
Once the price spikes, those behind the promotion sell off their holdings for a profit, causing the price to crash and leaving other investors with worthless or devalued coins.
Among the projects linked to the YouTube star is SuperFarmDAO’s SUPER token, where it is alleged that MrBeast invested $100,000, received 1 million SUPER tokens, and later sold them for around $3.7 million.
The investigator further alleges that MrBeast received additional vested tokens from SuperFarmDAO, bringing his total earnings from this project to approximately $9 million.
This pattern of investment and quick sell-offs is said to have been repeated in other projects such as Polychain Monsters (PMON), where a $25,000 investment reportedly earned MrBeast $1.7 million, and SHOPX, which allegedly brought in $765,000 from a similar investment.
Meanwhile, another project, STAK, reportedly yielded $1.25 million in profit for the YouTuber.
SomaXBT, argues that these activities mirror classic pump-and-dump schemes that harm retail investors, as the tokens’ prices surge and then crash after influencers like MrBeast offload their holdings.
Other influencers mentioned in the investigation include Lark Davis, CryptoBanter, KSI, and others, who are also alleged to have been involved in similar schemes.
In most cases, traders looking to capitalise on the hype are left with nothing but useless cryptocurrencies, as the liquidity dries up following a notable dump.
According to the investigator, such activities if conducted in traditional stock markets, would likely attract regulatory scrutiny.
Criticism from the community
SomaXBT’s investigation is part of a broader debate about influencer-backed token promotions in the cryptocurrency market, with many questioning the ethics of such practices.
Mike Kremer, a data engineer at Messari, criticised the practice in an August newsletter, claiming that this sort of activity, is damaging for both the projects involved and the industry as a whole.
A similar sentiment was recently echoed by fellow investigator ZachXBT, who pointed to crypto influencer Ansem as an example, accusing him of promoting low-cap tokens to orchestrate pump-and-dump schemes involving the hype around meme coins.
In another development, the US Department of Justice charged 18 individuals and companies with manipulating cryptocurrency markets. This marked the first criminal prosecution of financial firms involved in crypto schemes.
Among those implicated are ZM Quant, CLS Global, MyTrade, and Gotbit.
They allegedly inflated token prices through wash trading and deceptive practices, leading to the seizure of $25 million in cryptocurrency.
Back in 2022, a class-action lawsuit was filed against several social media influencers and celebrities, including Soulja Boy and Jake Paul, for their involvement in promoting the Safemoon token.
Investors were promised high returns, leading to a spike in trading volume before the token’s value plummeted. Safemoon executives left the project during the downturn, leaving many investors with substantial losses.
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