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 expertise, SerpentAU, whose actual title stays undisclosed, is accused of orchestrating meme coin scams via hacked social media accounts.
Dropped at 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 menace actor Serpent went from a professional Fortnite participant to serving to steal $3.5M by way of 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 habits within the crypto area, leaving victims grappling with important 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 inside the cryptocurrency business.
In an in depth thread, ZachXBT revealed that SerpentAU performed a key position within the theft of $3.5 million via 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 many others., on X & IG which has resulted in an estimated $3.5M+ stolen by way of launching Pump Enjoyable meme cash,” ZachXBT tweeted.
The scams exploited high-profile accounts to advertise faux meme cash, attractive followers to speculate 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 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 consists of failed ventures reminiscent of DAPE and ERROR, non-fungible token (NFT) initiatives launched in 2022 and 2024, respectively.
Each initiatives 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 revealed,” 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, referred to 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 position of social media platforms in facilitating these scams. By compromising verified accounts, scammers like SerpentAU have been capable of exploit their attain and credibility, deceptive hundreds of followers into investing in fraudulent initiatives.
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Group Reactions
Whereas victims of the scams are demanding accountability, business observers are questioning the position of platforms like X (previously Twitter) and Instagram in enabling such schemes.
A former acquaintance of SerpentAU, tweeting underneath the deal with @solsweb3, shared their disappointment: “He was my buddy again within the day throughout Fortnite after 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 indignant.”
Including to the outcry, one other person identified previous suspicions round SerpentAU’s actions saying “I knew it wasn’t a coincidence {that a} phishing deal with had the ENS serpent.eth. I keep in mind tweeting into the void about this dude being a scammer. He claimed to be a ‘Cybersecurity Professional,’ however in actuality, it was simply his mates launching the tokens,”
“My actions have 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 important 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.
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