A report from Loock Advising states that the famous YouTuber MrBeast has engaged in insider trading with Crypto/Non-Fungible Token. Through public promotion and a secret wallet network, he has earned at least $23 million.
This tactic exists in a murky legal area, and the report does not mention any actual consequences.
MrBeast's Crypto Connections
A new investigation from Loock Advising reveals that MrBeast, one of the world's largest YouTube content creators, has quietly promoted questionable Crypto projects. Previously, he had publicly warned viewers about the risks of online scams, further adding to the deception of the story. Loock Advising accuses MrBeast's actions of focusing on insider trading and pump and Dump.
A core component of his activity is a vast network of secret wallets. This tactic has often been used in the past, allowing users to pump assets they hold in secret. MrBeast revealed his main wallet address through a social media post in 2021. Investigators used this and chain data to map out his larger network, revealing a hidden asset pool.
MrBeast's Secret Wallet. Source: Loock AdvisingInvestigators then examined several specific Crypto projects that these wallets had invested in. MrBeast had promoted these projects through social media, and some of his YouTube associates also frequently did so. Even when projects like SuperVerse crashed, MrBeast continued to withdraw funds before the price collapse.
"We believe this is the result of insider trading as MrBeast is primarily focused on his social media empire. Investing in cryptocurrencies requires time and focus, filtering through hundreds of potential investment opportunities. Instead of active trading, MrBeast has made a number of highly profitable investments,"
the investigation stated.
Kasper Vandeloock, an analyst at Loock Advising, accused MrBeast of earning at least $23 million from these insider trading activities. Vandeloock and his colleagues have been tracking the activity for three years and found that very few individual Tokens/Non-Fungible Tokens generated over $2 million. Instead, MrBeast has pursued smaller, more stable profits, which have been harder to track.
Ultimately, the fact is that some members of the Crypto community do not consider this action unethical. This type of Crypto-based insider trading exists in a murky legal area, and MrBeast may not face any consequences beyond reputational damage. The report ends with a sarcastic "advice" for him, only suggesting cheaper Token swap protocols than what he has used.
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