SerpentAU Accused in $3.5 Million Meme Coin Scandal

Australian YouTuber SerpentAU, once celebrated for his exceptional gaming skills, now finds himself at the center of a major crypto fraud scandal.

Blockchain investigator ZachXBT revealed that SerpentAU, whose real name was not disclosed, played a major role in a $3.5 million theft scheme executed via coin. scams. This marks a dramatic fall from grace for the former esports talent who was kicked out of Overtime Gaming in 2020 following cheating allegations.

From gaming scandal to crypto fraud

ZachXBT’s detailed investigation highlights SerpentAU’s involvement in multiple account takeovers (ATOs). The YouTuber targeted high-profile entities including McDonald’s, Usher and the creator of the Kabosu meme coin.

“Over the past few months, I have been following a series of compromises related to McDonald’s, Usher, Kabosu owner Andy Ayrey, Wiz Khalifa, SPX 6900, etc. on X and IG, which resulted in an estimated heist of over $3.5 million via the launch of Pump. Funny Coins”, the Blockchain Detective said.

These compromised social media accounts were used to promote fraudulent cryptocurrencies, tricking unsuspecting followers into investing heavily. For example, the McDonald’s Instagram hack alone netted fraudsters more than $690,000. The bad actor routed the funds through blockchain wallets connected to SerpentAU.

Using temporal analysis and on-chain tracking, ZachXBT linked the funds from these scams to gambling platforms like Stake and Roobet. SerpentAU is said to have bet millions on these platforms. In one case, a leaked Discord screenshare revealed that Serpent was making high-value deposits and withdrawals linked to the wallets involved in the scams.

SerpentAU first gained notoriety in 2020 after being exposed for using macros, software tools that allowed unfair advantages in Fortnite’s Creative Mode. Although he expressed remorse and attributed his actions to a lack of understanding of their seriousness, his professional trajectory took a darker turn.

In 2022, SerpentAU had co-founded NFT (non-fungible token) and cryptocurrency projects such as DAPE and ERROR. Both projects failed following accusations of fraudulent activities. These companies paved the way for its deeper involvement in blockchain-based scams.

As details of SerpentAU’s involvement emerge, the repercussions extend beyond cryptography. Victims of these scams find themselves struggling with significant financial losses. The esports community must confront the ethical failings of one of its former stars. Ironically, Serpent’s first apology for cheating in Fortnite included a plea for understanding.

“My actions were clouded by money, influence and the experiences I was having,” SerpentAU said.

These words now echo as a dark foreshadowing of his trajectory into crypto fraud. This case is a stark reminder of the changing nature of online fraud.

The role of social networks Platforms as conduits for bad actors are also becoming evident. As ZachXBT continues to unveil the full scope of these systems, the crypto and gaming communities are considering the cost of misplaced trust in influential figures.

Meanwhile, this isn’t ZachXBT’s first major investigation. The blockchain detective has already revealed significant frauds, including Phishing scams targeting Coinbase users. It also revealed coin manipulation involving personalities like an influencer. Mourad.

His work has also led to the arrest of hackers linked to Genesis Trading creditors. Some also urged resignations of key OpSec figures Williams after fraud allegations came to light. ZachXBT’s continued focus on uncovering deception within the crypto ecosystem reflects the broader risks investors face.