MrBeast Faces Insider Trading Allegations Linked to Over 50 Crypto Wallets

MrBeast Faces Insider Trading Allegations Linked to Over 50 Crypto Wallets

James Donaldson better known as MrBeast a prominent YouTube personality renowned for his philanthropic ventures is now embroiled in a serious controversy concerning insider trading allegations. A recent investigation has connected him to a network of alleged crypto pump-and-dump schemes suggesting that he profited significantly from promoting low-cap tokens alongside other influential online figures.

Investigation Reveals Alleged Profits from Crypto Schemes

The allegations originated from a report by crypto investigator SomaXBT who revealed findings on social media platform X that indicate MrBeast may have earned over $10 million through the promotion and sale of low-cap initial DEX offering (IDO) tokens which subsequently lost substantial value. The tokens promoted by MrBeast along with other influencers such as Lark Davis and CryptoBanter reportedly left investors with devastating losses as their prices dropped sharply following high-profile sell-offs.

SomaXBT’s initial report garnered widespread attention highlighting that many of the tokens involved experienced price declines exceeding 90% with some opting to rebrand to dissociate from the negative fallout associated with the promotions.

Deepening Controversy and Estimated Profits

Two weeks after the initial claims a comprehensive investigation conducted by loock.io expanded on the allegations against Donaldson estimating his total profits from these schemes to be over $23 million since 2021. This research was supported by on-chain data analysis conducted by SomaXBT in collaboration with blockchain analysts including Kasper Vandeloock and Hxnterson. The investigation identified a network of more than 50 crypto wallets linked to MrBeast.

Among the findings was MrBeast’s primary wallet address which he publicly confirmed in 2021 when he purchased 50 Ethereum. Investigators traced several wallets that funneled funds into this address suggesting coordinated transactions indicative of shared ownership among the wallets involved. The connections between these wallets visualized in a network graph point to a potentially orchestrated operation.

MrBeast’s Involvement with the SUPER Token

The investigation also highlighted MrBeast’s participation in promoting the SuperVerse (SUPER) token previously known as SuperFarm. This token saw a notable price increase as it was marketed alongside influencers like EllioTrades due to speculation surrounding an NFT marketplace that was set to be integrated with a gaming ecosystem.

MrBeast’s social media promotion of SUPER coincided with a 50-fold increase in its price which excited early investors. However shortly thereafter early buyers found themselves refunded under unclear circumstances while rapid sell-offs from MrBeast’s wallets raised further suspicions about the legitimacy of the promotion. According to the findings from loock.io MrBeast received a million SUPER tokens in early 2021 which he transferred to a side wallet before liquidating the entire amount in March 2021 reaping approximately $7.5 million in profits.

Further token releases reportedly brought MrBeast’s total earnings from SUPER to around $11.5 million. An alleged leaked message on social media indicated MrBeast discussing a $100k investment further intensifying speculation about his involvement in the controversial schemes.

Accumulation of Wealth from Other Tokens

The investigation did not stop with the SUPER token. It was reported that MrBeast’s main wallet also accumulated significant amounts from other crypto projects including $4.6 million from Eternity Chain (ERN) $1.7 million from PolyChain Monsters (PMON) and nearly $485,000 from SHOPX. The evidence suggested these transactions were part of a broader coordinated effort with fellow influencers aimed at inflating token values through promotional hype followed by rapid sell-offs for profit.

Celebrity Influence in the Crypto Market

As mainstream celebrities increasingly enter the Web3 space many of their ventures have left retail investors disillusioned with numerous “celebrity grifts” unfolding particularly within the Solana (SOL) ecosystem. The Solana network has experienced a surge in activity related to meme coins linked to celebrity endorsements yet investors in these tokens have often encountered significant losses.

In June alone 30 celebrity-backed meme coins were launched on Solana generating considerable early excitement. However within months many of these tokens have seen drastic declines in value. Reports indicate that half of these coins have dropped by 99% while others are down by at least 90%. Even the most successful celebrity meme coins have experienced declines of at least 70%.