SomaXBT, a blockchain detective, has recently become interested in the actions of MrBeast in the world of cryptocurrencies. The YouTuber who has more than 320 million subscribers is accused of having pocketed several million dollars thanks to unethical and even illegal maneuvers.
MrBeast is accused of having used the “pump and dump” mechanism
In recent months, controversies surrounding Jimmy Donaldson, known as MrBeast, have multiplied. The latest concerns his past “investments” in the cryptocurrency industry.
On X, SomaXBT, a detective specializing in blockchain, presented his investigation where he was interested in how the most followed YouTuber in the world managed to pocket 10 million dollars thanks to cryptocurrencies.
1/ An investigation into @MrBeast ,how he allegedly made $10M+ by backing low-cap IDO crypto tokens promoted by influencers like Lark Davis, CryptoBanter, KSI, and others. Many of these projects are now down over 90%, with some rebranding after major losses.
let's dive in. 🧵 pic.twitter.com/NR9dq9ZnD2
— SomaXBT (@somaxbt) October 11, 2024
To carry out his investigations, the investigator mainly relied on information linked to the wallet labeled “Mr.Beast” available on Arkham Intelligence. In 2021, MrBeast reportedly quietly invested $100,000 in the SuperFarmDAO project. In this way, he would have obtained 1 million SUPER tokens associated with the project.
MrBeast paid around $100,000 for USDC stablecoins which he converted into 1 million SUPER tokens
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So far, nothing to worry about. However, after carrying out this operation, MrBeast showed his support for the project by publishing a few posts on.
At that time, the YouTuber already had more than 50 million subscribers. Thanks to his influence and his publications, the price of the SUPER token has simply exploded.
Thus, between March 31 and October 22, 2021, MrBeast has repeatedly converted SUPER tokens to Ethereum (ETH). He then sold his ETH in order to pocket almost 9 million dollars.
At the end of March 2021, MrBeast resold his SUPER tokens for the first time for the sum of $3.5 million
But that's not all: MrBeast would have repeated the experience with several projects like Polychain Monsters, SPYLT, or STAK.
He invested in the project, collecting a large number of associated tokens in the process, then promoted it on social networks. The price of the tokens climbed then the YouTuber resold them at a high price before seeing their price collapse by more than 90%..
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After highlighting his actions, SomaXBT accuses MrBeast of having exploited the “pump and dump” mechanism. This is a fraudulent practice of market manipulation.
Here, the example highlighted concerns personalities who acquire tokens at a low price and then use their influence to increase the price of this cryptocurrency before reselling them for more than they bought them.
Within the crypto community, several people protested this practice, thanking the blockchain detective for having carried out the investigation. So far, MrBeast did not speak regarding the accusations made against him.
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In the past, other influencers have been accused of crypto scams. This is the case of YouTuber Logan Paul who was prosecuted in the context of the CryptoZoo affaira proven non-fungible token (NFT) scam.
He was finally forced to pay $2.3 million out of his own pocket in order to buy back the NFTs from those who had acquired them.
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Surprised by the rise of crypto-assets at the end of the 2010s, I began to closely follow this sector which fascinates me to the greatest extent. When I'm not in football stadiums, rugby stadiums or handball halls, I work on writing relevant articles around cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
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