Crypto News : MrBeast Accused of $23M Crypto Scheme
Qadir AK30 Oct 20242 min read
In yet another insider trading allegation crypto market is in shock with 300+ million fans YouTuber Jimmy Donaldson, known as MrBeast, has been accused of earning over $23 million through low-cap token promotions and alleged pump-and-dump schemes. On-chain analytics platform OnchainLens shared findings on X, alleging that MrBeast, also known as Jimmy Donaldson, used a network of over 50 wallets to make more than $23 million in profits from controversial token trades. The investigation claims these wallets were tied to a series of pump-and-dump tactics, which misled investors while profiting those with early access.
Here’s what you need to know about this insider trading practice!
Series of pump-and-dump tactics
According to previous reports, a key wallet linked to MrBeast invested $25,000 in the Ethereum-based meme coin Polkamon (PMON), selling shortly afterward for a staggering $1.3 million profit. This wallet also bought one million SUPER tokens for $100,000, later selling them at the token’s all-time high, yielding over $9 million before the token value crashed by more than 90%. ZachXBT, a notable on-chain sleuth, had previously highlighted PMON’s controversial trading activity, allegedly using insiders at retail investors’ expense.
Wallet Link to MrBeast Raises Questions
Blockchain firm Arkham Intelligence linked a main wallet to MrBeast, which he previously said he used for buying NFTs. However, there’s no solid proof that he made the trades, leaving it unclear who may have managed these activities. Due to the complexity of blockchain transactions, Conor Grogan from Coinbase also reviewed the wallet but held back from making firm conclusions.
The investigation into MrBeast’s alleged crypto trading has sparked mixed reactions. Some see it as a warning about influencers and high-risk crypto projects, while others point out that it’s hard to directly link on-chain transactions to specific individuals without clear proof. This could affect crypto regulations and MrBeast’s image, especially given his reputation for transparency and philanthropy-focused content.
Is this a warning for naive investors to invest carefully in crypto projects?
