Australian Fortnite YouTuber and former esports skilled SerpentAU is caught on the heart of a $3.5 million crypto fraud investigation.

As soon as celebrated for his gaming abilities, SerpentAU, whose actual identify stays undisclosed, is accused of orchestrating meme coin scams by hacked social media accounts.

Delivered to gentle on 27 November 2024, by blockchain investigator ZachXBT,  the allegations hyperlink SerpentAU to a number of account takeovers and fraudulent schemes.

1/ An investigation into how the risk actor Serpent went from a professional Fortnite participant to serving to steal $3.5M through meme coin scams launched from 9+ account compromises on X & IG and playing the proceeds away at on-line casinos. https://t.co/zR6QtuQW8a pic.twitter.com/Y8ovnEnQgj

— ZachXBT (@zachxbt) November 27, 2024

The findings additionally spotlight a troubling shift from gaming stardom to repeated unethical conduct within the crypto area, leaving victims grappling with vital monetary losses.

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From Esports Star to Crypto Scammer

SerpentAU gained notoriety in 2020 after being dropped by esports group Additional time Gaming for utilizing dishonest software program in Fortnite. Regardless of expressing regret, his trajectory took a darker flip, culminating in fraudulent ventures throughout the cryptocurrency business.

In an in depth thread, ZachXBT revealed that SerpentAU performed a key function within the theft of $3.5 million by compromised accounts selling fraudulent meme cash.

“Over the previous few months, I’ve been monitoring a sequence of associated compromises for McDonald’s, Usher, Kabosu Proprietor, Andy Ayrey, Wiz Khalifa, SPX 6900, and so on., on X & IG which has resulted in an estimated $3.5M+ stolen through launching Pump Enjoyable meme cash,” ZachXBT tweeted.

The scams exploited high-profile accounts to advertise pretend meme cash, attractive followers to take a position substantial sums of cash. As an example, a compromised McDonald’s Instagram account alone generated $690,000 in rip-off proceeds.

ZachXBT’s investigation linked these funds to blockchain wallets linked to SerpentAU, revealing their use for playing on platforms like Stake and Roobet.

A leaked Discord display screen share additional implicated SerpentAU, displaying massive deposits and withdrawals from wallets concerned within the scams.

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A Sample of Deception

SerpentAU’s historical past within the crypto area contains failed ventures equivalent to DAPE and ERROR, non-fungible token (NFT) tasks launched in 2022 and 2024, respectively.

Each tasks collapsed amid accusations of fraud, setting the stage for his deeper involvement in blockchain-based scams.

“Serpent started deleting all his posts from his new X account after the primary a part of the investigation was printed,” ZachXBT famous. This response, coupled with proof of on-chain fund actions, has intensified scrutiny of SerpentAU’s actions

ZachXBT’s investigation additionally uncovered SerpentAU’s companion, often known as DeX, for alleged involvement in associated scams. DeX reportedly participated in “sniping” schemes and later claimed extortion when confronted.

As particulars proceed to emerge, ZachXBT’s findings highlighted the function of social media platforms in facilitating these scams. By compromising verified accounts, scammers like SerpentAU had been in a position to exploit their attain and credibility, deceptive hundreds of followers into investing in fraudulent tasks.

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Group Reactions 

Whereas victims of the scams are demanding accountability, business observers are questioning the function of platforms like X (previously Twitter) and Instagram in enabling such schemes.

A former acquaintance of SerpentAU, tweeting below the deal with @solsweb3, shared their disappointment: “He was my buddy again within the day throughout Fortnite once I was nonetheless a child. I messaged him concerning the allegations and he lied to me. That is unhappy to see, and there’s no excuse. Upset and offended.”

Including to the outcry, one other consumer identified previous suspicions round SerpentAU’s actions saying “I knew it wasn’t a coincidence {that a} phishing handle had the ENS serpent.eth. I bear in mind tweeting into the void about this dude being a scammer. He claimed to be a ‘Cybersecurity Knowledgeable,’ however in actuality, it was simply his buddies launching the tokens,”

“My actions had been blurred by the cash, affect, and experiences I used to be having,” SerpentAU as soon as stated in an apology for his Fortnite dishonest scandal. These phrases now echo as a grim foreshadowing of his deeper entanglement in fraudulent actions.

In the meantime ZachXBT, identified for exposing vital crypto frauds, stays dedicated to uncovering the complete scope of the schemes. His previous investigations have led to the arrests of hackers linked to Genesis Buying and selling collectors and uncovered phishing scams focusing on Coinbase customers.

Disclaimer: Crypto is a high-risk asset class. This text is offered for informational functions and doesn’t represent funding recommendation. You would lose your entire capital.
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