7-8-2025 – Cybersecurity firm SentinelLABS has exposed a sophisticated cryptocurrency scam using established YouTube accounts to promote malicious trading bots that have collectively stolen over $939,000 from victims since 2024.
The scheme involves aged YouTube channels with legitimate posting histories offering crypto trading bot tutorials and smart contract code, according to senior threat researcher Alex Delamotte in a Tuesday report. The malicious contracts contain hidden code that grants scammers access to drain funds once victims deposit the recommended minimum of 0.5 ETH ($1,829). Three tracked wallets alone collected 7.59 ETH, 4.19 ETH, and 244.9 ETH respectively.
The scammers exploit credible-looking channels that previously posted crypto news and investment content, either purchasing established accounts or repurposing compromised channels. Many promotional videos appear AI-generated, allowing rapid content creation while maintaining false authenticity. Comment sections are manipulated to remove criticism and plant fake testimonials claiming successful profits.
SentinelLABS noted the increasing prevalence of such social media-based crypto fraud as scammers leverage trusted platforms to distribute malicious code. The researchers emphasized that legitimate trading tools rarely require users to deploy smart contracts themselves or promise effortless profits.
