MrBeast’s Alleged $23M Crypto Scheme Raises Insider Trading Concerns

Accusations link YouTube star to pump-and-dump crypto schemes.

Jimmy Donaldson, widely known as MrBeast, faces serious allegations surrounding crypto trading practices that reportedly earned him over $23 million between 2021 and 2024. Blockchain analysts claim that Donaldson’s dealings include early investments in emerging tokens, followed by aggressive promotion and timed sell-offs at peak prices, sparking discussions on possible “pump-and-dump” schemes.

In a detailed report by Loock.io, researchers traced Donaldson’s involvement across more than 50 cryptocurrency wallets that exhibit strategic, pre-launch token acquisitions followed by well-timed sales. The investigation highlights transactions in various tokens, including SuperVerse (SUPER), Ethernity Chain (ERN), and other small-cap assets. SuperVerse alone allegedly netted MrBeast a $7.5 million profit, with analysts observing that tokens were initially acquired at substantial discounts before being sold as prices surged.

The patterns are further illustrated in the Ethernity Chain case, where Donaldson reportedly purchased tokens at low prices, only to sell them during a price spike, pocketing an estimated $4.6 million. Other projects, like AIOZ and SHOPX, also demonstrated similar activity, with Donaldson’s wallets reaping high returns before token values plummeted.

Donaldson’s network, which includes social media influencers like KSI and crypto figure Alex Becker, allegedly played a role in amplifying these promotions. When MrBeast or his associates mentioned a project, blockchain records show coordinated sales from connected wallets, often leading to dramatic price drops. This behavior is consistent with what’s commonly seen in pump-and-dump schemes, where early investors profit from artificial price increases driven by hype.

Investigators identified MrBeast’s primary wallet through public NFT purchases and early project token allocations. This main wallet, labeled (0x9e67D018488aD636B538e4158E9e7577F2ECac12) reportedly coordinated with over 50 other wallets for token distributions and sales. Notably, one wallet named “BobbieDigital” appears central to the operation, handling high-volume token transfers and executing large sales.

One example from the report involves the SUPER token, where MrBeast allegedly received pre-launch tokens valued at $100,000. These tokens were later sold at peak price levels for a profit of $7.5 million, according to blockchain data. Following these sales, SUPER’s price declined by more than 99%, resulting in heavy losses for latecomers.

The report notes that MrBeast’s public persona was also leveraged for promotional purposes, with his image appearing on the websites of projects like PlayMetaGods and MetaWars. Many of the wallets linked to MrBeast were traced to major exchanges, such as Gemini and Binance, where analysts observed deposit patterns that support connections between the wallets.

The timing of these trades suggests a calculated approach, with sales often coinciding with high-volume periods. This sophistication, combined with coordinated promotional activities, has raised concerns about potential insider trading or market manipulation.

Most projects tied to these trades have suffered significant devaluation. Tokens, on average, lost over 95% of their value following MrBeast’s alleged sell-offs. Retail investors who purchased during promotional phases bore the brunt of these losses, sparking criticism over the ethical implications of celebrity involvement in crypto.

photo source / Blockonome