Scam Alert: YouTube Fake Trading Bots Swindle 256+ ETH—Here’s How They Did It | SentinelLABS

Another day, another crypto scam—except this one’s got YouTube’s algorithm doing the dirty work.

Fraudsters posing as trading bot gurus drained over 256 ETH from hopeful investors, proving once again that if it’s too good to be true, it’s probably a grift. (But hey, at least the scammers paid gas fees—somebody’s propping up the network.)

How it worked: Fake tutorials promised AI-powered trading bots that’d ‘guarantee’ profits. Victims linked wallets to ‘test’ the bots, only to watch their funds vanish faster than a memecoin’s liquidity.

The kicker? YouTube’s ad-revenue model happily served these videos to millions. Nothing like a little algorithmic negligence to spice up a bear market.

Stay paranoid out there—your wallet’s safer in cold storage than in a YouTuber’s ‘exclusive’ Discord.

Over $939K Stolen So Far

Scammers deceive victims into sending at least 0.5 ETH (approximately $1,829) under the guise of paying for gas fees and maximizing returns. However, in reality, this deposit triggers the scam.

So far, more than 256 ETH has been stolen. Alex Delamottea’s research identified multiple scam wallets, one recently received 7.59 ETH, another 4.19 ETH, and a third 244.9 ETH, totaling over $939,000.

Delamottea also pointed out that some wallets are reused in different scams, while many other unique addresses are involved, making it difficult to determine exactly how many scammers are behind the operation.

Fake YouTube Accounts and AI Videos

The trick depends on old YouTube accounts that previously posted regarding crypto, finance, or pop culture. These outdated accounts seem more credible and are probably purchased via Telegram or websites selling YouTube accounts, Delamottea said.

Most of the videos are computer-generated, with robotic speech and abnormally rendered images. This is convenient for scammers to produce large quantities of fake videos without their identities being discovered. Scammers remove negative reviews and insert phony testimonials of profits earned from the bot.

How to Stay Safe?

Experts recommend that cryptocurrency users avoid trading bots or software marketed on unverified YouTube or social media channels. If anything offers quick, easy gains with minimal effort, it’s most likely a scam.

To prevent falling prey to these scams, users must research software thoroughly, know how the code operates, and never take blindly at face value random online videos, particularly those that offer links or codes to deploy.

Also Read: MEXC Blocks 70K Scams as Global Crypto Fraud Surges