Popular YouTuber MrBeast Under Investigation for Alleged $23M Insider Trading Scheme

Recent investigations by on-chain analysts Hunter and Kasper Vanderloock, with support from other external bodies, have raised serious allegations against James Stephen, better known as MrBeast. The report, published on October 29, claims that the well-known YouTuber has been involved in insider trading and other questionable practices in the cryptocurrency space, allegedly netting around $23 million.

The inquiry revealed that nearly 50 cryptocurrency wallets, allegedly linked to MrBeast, have amassed $23 million through various illicit activities, including insider trading, misleading investors, and promoting crypto tokens only to sell them later at inflated prices. This practice, often referred to as a “pump-and-dump” scheme, allows promoters to profit significantly by selling the tokens once their value has been artificially driven up.

According to investigators, the probe began after examining a publicly known Ethereum wallet associated with MrBeast, which he reportedly used to purchase a high-value CryptoPunk NFT in 2021. The investigation showed that this wallet had connections to several tokens identified as “pump-and-dump” schemes, with MrBeast allegedly profiting from these transactions.

Part 1:
1/ An Investigation into MrBeast's cryptocurrency history, how he made upwards of $23,000,000 from crypto using his brand influence to pump crypto projects, and then later dump his bags onto the markets, and history of insider trading through his network, involving KSI.

— Hunter (@hxnterson) October 30, 2024

One notable case involved the Ethereum-based token SuperVerse, which netted MrBeast a profit of $7.5 million. Investigators claim he initially invested $100,000 and promoted the token alongside other influencers, significantly increasing its value before selling.

In addition to pump-and-dump activities, MrBeast is reportedly linked to major crypto exchanges such as Binance and Gemini, where investigators found transactions totaling over $13 million. These transactions have raised concerns about the potential for misuse of large trading platforms and highlight the difficulty in policing the activities of influential figures in the cryptocurrency world.

Part 2
1/ Investigation into MrBeast and how he made upwards of $23,000,000 from cryptocurrency. This part focuses on insider trading and his network.

This thread is an overview, for the full investigation with all details, timestamps, sources, check out https://t.co/u7sfwADKS7

— Hunter (@hxnterson) November 1, 2024

Alongside the accusations of insider trading and fraudulent promotions, other allegations have surfaced, including the operation of illegal lotteries, associations with employees with questionable backgrounds, and staging fake videos.

MrBeast isn’t the only celebrity facing accusations of involvement in crypto-related scams. The trend of celebrity-endorsed crypto schemes has grown, with cases involving major public figures surfacing more frequently. Recently, American model Amber Rose was alleged to have profited $350,000 in a pump-and-dump involving a Solana-based meme coin, Muva. Similarly, musician Davido reportedly earned $470,000 from similar activities.

These cases underscore the need for stricter regulations and better investor education to curb the spread of crypto fraud tied to celebrity endorsements. Many investors, especially fans of these celebrities, are often unaware of the risks and may fall victim to schemes that appear legitimate.

As crypto scams involving celebrities continue to surface, concerns about the lack of transparency and accountability in the industry grow. Investor advocates call for more robust regulations to prevent misuse of influence and protect investors from schemes designed to profit at their expense.

Read complete story at loock.io/blog/mrbeast-investigation.

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