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A well-known YouTube Crypto figure, MrBeast, also known as James Donaldson, is currently embroiled in a significant controversy concerning allegations of insider trading.
A recent inquiry has linked the influencer to a series of purported crypto “pump-and-dump” operations. He is said to have gained financially from endorsing and selling low-cap tokens in partnership with other prominent online personalities involved in these schemes.
MrBeast Under Investigation: Crypto Pump-and-Dump Claims Shake the YouTube Star
The allegations originated from a report by crypto investigator SomaXBT, who disclosed findings on X indicating that MrBeast allegedly earned over $10 million from low-cap IDO (initial DEX offering) tokens that subsequently depreciated.
An investigation into @MrBeast’s crypto activities and how he profited over $23M from a multitude of scams, shady deals & his network
in collaboration with @hxnterson @angelfacepeanut @somaxbt @rfparsonhttps://t.co/xocBH9X8PM— Kasper Vandeloock (@KasperLoock) October 30, 2024
The tokens, heavily promoted by influencers such as Lark Davis and CryptoBanter, reportedly resulted in substantial losses for investors as prices fell sharply following prominent sell-offs.
SomaXBT’s initial findings quickly attracted attention. They indicated that numerous tokens involved experienced price declines exceeding 90%, with some rebranding entirely to dissociate from the negative aftermath.
Two weeks after the initial allegations, a comprehensive investigation on loock.io further solidified the case against Donaldson, estimating his earnings from these schemes at over $23 million since 2021.
This analysis, supported by on-chain data, was carried out by SomaXBT in conjunction with blockchain analysts, including Kasper Vandeloock and Hxnterson. It traced a network of more than 50 wallets associated with Donaldson.
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The investigation identified MrBeast’s primary wallet address, which he publicly confirmed in 2021 when he acquired 50 Ethereum. Investigators monitored several wallets transferring funds into this address, implying coordinated transactions typically linked to shared ownership.
The network connections among these wallets, illustrated in a detailed network graph, imply a well-planned intentional operation.
Inside MrBeast’s SUPER Token Earnings: Is This Just the Beginning of Celebrity Crypto Scams?
The investigation revealed Donaldson’s connection to the SuperVerse (SUPER) token, formerly known as SuperFarm.
The token was promoted alongside influencers like EllioTrades, and its value briefly surged as excitement built around an NFT marketplace that was expected to integrate with a gaming ecosystem.
MrBeast’s promotion of SUPER on social media coincided with a 50x price increase, generating enthusiasm among early investors. However, initial buyers were soon refunded under ambiguous conditions, and a series of swift sales from Donaldson’s wallets raised concerns.
According to loock.io’s findings, he received a million SUPER tokens in early 2021 and transferred them to a secondary wallet before liquidating the entire amount in March 2021, netting approximately $7.5 million.
Subsequent unlocked token supplies reportedly brought MrBeast’s total SUPER earnings to $11.5 million. An alleged leaked message from MrBeast on X mentioned a $100k investment, further intensifying suspicions.
In addition to SuperVerse, the report estimates that MrBeast’s main wallet also accrued $4.6 million from Eternity Chain (ERN), $1.7 million from PolyChain Monsters (PMON), and nearly $485,000 from SHOPX.
The investigation suggested these transactions were part of coordinated efforts with other influencers, each aimed at enhancing token value through hype before profiting from a swift sell-off.
The Solana ecosystem has experienced a rise in activity from meme coins associated with celebrity names, yet investors in these tokens have encountered significant losses.
In June alone, 30 celebrity-backed meme coins were launched on Solana, generating initial excitement. However, months later, most of these tokens have experienced severe declines.
Reports indicate that half of these coins have fallen by 99%, while seven others are down by at least 90%. Even the top-performing celebrity meme coins have seen declines of at least 70%.
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