Crypto insider trading? MrBeast indicted over $23 million scheme

A report from Loock Advising suggests that popular YouTuber MrBeast engaged in crypto/NFT insider trading. He earned at least $23 million through public support and a network of secret wallets.

This widespread fraud operates in a legal gray area and the report does not suggest any concrete consequences.

MrBeast's crypto connection

A new investigation by Loock Advising suggests that MrBeast, one of the world's largest YouTube creators, has been quietly promoting questionable crypto projects. In the past, he has publicly warned his audience about the danger of online scams, adding a layer of hypocrisy to the story. Loock Advising claimed that MrBeast's actions focused on insider trading and pump and dumps.

A central part of his operation is a vast network of secret wallets. This tactic has been widely used in the past and allowed users to pump assets they secretly own. MrBeast doxxed his own primary wallet address via a 2021 social media post. Investigators used this and on-chain data to map its broader network and uncover a wealth of hidden investments.

Read more: Crypto social media scams: How to stay safe

Investigators then examined several specific crypto projects in which these wallets invested. MrBeast supported these projects via social media, and several of his YouTube employees often did the same. Even when some of them, like SuperVerse, turned out to be legitimate projects, MrBeast continued to pay out money before major price crashes occurred.

“We believe this is a result of insider trading as MrBeast is primarily focused on its social media empire. Investing in cryptocurrencies requires time and focus to explore hundreds of potential investment opportunities. Instead of actively trading, MrBeast made several investments that paid off tremendously,” the investigation says.

Kasper Vandeloock, an analyst at Loock Advising, claimed that MrBeast profited at least $23 million from these insider trading incidents. Vandeloock and colleagues tracked activity for three years and found that very few of these individual tokens/NFTs raised more than $2 million. Instead, MrBeast sought consistent and low returns, which proved more difficult to pursue.

Read more: Crypto scam projects: How to spot fake tokens

Ultimately, the reality is that some members of the crypto community do not consider these actions to be unethical. This type of crypto-based insider trading exists in a legal gray area, and MrBeast may face no consequences other than his reputation. The report concludes with ironic “advice” for him, simply suggesting cheaper token swap protocols than the ones he has previously used.