Jimmy Donaldson, better known as MrBeast, is facing serious allegations of involvement in a “pump and dump” crypto scheme that purportedly generated over $10 million in profits. This scheme reportedly involved low-cap tokens promoted alongside other social media influencers, as revealed by on-chain investigator SomaXBT.
Linked To Troubling Crypto IDO Promotions
MrBeast, who boasts a substantial 320 million subscribers on his main YouTube channel, is famous for his high-production videos featuring challenges, extravagant giveaways, and stunts.
However, according to SomaXBT, MrBeast allegedly profited significantly by endorsing initial decentralized exchange offerings (IDOs) of various cryptocurrencies. Influencers such as Lark Davis, CryptoBanter, and UK YouTuber KSI were also reportedly involved in promoting these tokens.
SomaXBT’s investigation highlights a concerning trend: many of the projects linked to these endorsements have since lost over 90% of their value, with some undergoing rebranding efforts after suffering major losses.
The investigator traced activities to a wallet labeled ‘Mr. Beast’ on blockchain analytics platform Arkham Intel, suggesting a direct link to MrBeast’s alleged financial maneuvers.
One notable project cited in the investigation is SUPER by SuperFarmDAO, now rebranded as Superverse. MrBeast reportedly earned more than $9 million from this token after investing just $100,000.
The investigation provides further evidence of MrBeast’s investment through a screenshot seen in SomaXBT’s social media post of a live stream where another influencer revealed a direct message with MrBeast discussing the $100,000 investment, with documented wallet activity, establishing a clear link.
Retail Investors Suffered 90% Token Losses
On-chain data further shows that on March 30, 2021, MrBeast transferred one million SUPER tokens to a new wallet, which subsequently dumped the tokens in multiple trades, netting approximately 1,900 Ethereum (ETH).
SomaXBT found that this amount was transferred back to MrBeast’s main wallet the following day, where it was then deposited into a Binance.US account, indicating a withdrawal of approximately $3.7 million.
Similarly, MrBeast’s involvement with the project PMON by Polychain Monsters is highlighted, where he reportedly turned a $25,000 investment into $1.7 million. After sending the tokens to the same wallet that dumped SUPER, he received 685 ETH, which was later converted into cash.
His investment activities also extended to SHOPX by SPLYT, where he made $765,000 from a $25,000 investment. Despite these earnings, MrBeast continues to hold 177,000 SHOPX tokens, which have significantly decreased in value.
Further allegations suggest MrBeast made $1.25 million through STAK tokens, with no direct transaction evidence but two Binance deposits correlating with the timing of the token allocation. Additionally, he participated in a poker tournament with VPP tokens, receiving 600,000 tokens without initial investment.
While MrBeast has profited from these ventures, retail investors have reportedly faced significant losses, with many of these tokens now down over 90%.
SomaXBT emphasized that if similar actions were taken in the stock market, regulatory bodies like the US Securities and Exchange Commission (SEC) would likely intervene.
However, this scenario may still be possible, as the regulator has stepped up its enforcement actions this year in particular, characterized by lawsuits and Wells Notices against key industry players and individuals involved in such schemes if proven true after proper investigation by the authorities.
Featured image from DALL-E, chart from TradingView.com