According to Cointelegraph, cybersecurity firm SentinelLABS has uncovered a widespread scam involving aged YouTube accounts used to promote a crypto trading bot that conceals a malicious smart contract. This scam, active since at least 2024, spreads through YouTube videos shared on social media, offering tips and smart contract code to deploy a crypto trading bot. Alex Delamottea, a senior threat researcher with SentinelLABS, detailed the scam in a report released on Tuesday.
The scam operates by adding the attacker's wallet to the smart contract, disguised as a trading address. Once the victim funds the contract, the scammer gains access to drain the funds. Victims are encouraged to deposit at least 0.5 Ether (ETH), valued at $1,829, to cover gas fees and ensure substantial profits. Delamottea's investigation revealed varying degrees of success for the scammers, with one wallet receiving 7.59 ETH, another 4.19 ETH, and a third holding 244.9 ETH, collectively worth over $939,000. The same wallet was observed across multiple weaponized smart contracts, although many unique addresses are in use, making it unclear how many actors are involved.
The YouTube accounts used in the scam are older, with a history of posting crypto news, investing tips, or pop culture content to enhance credibility. It remains uncertain whether the bad actors created these channels or purchased them, as old YouTube channels are available for sale online. Delamottea noted that several videos appear AI-generated, facilitating the creation of multiple scam videos without adopting new identities. Negative comments are deleted, and testimonials in the comments section falsely claim personal profits from the bot. Savvy users are turning to platforms like Reddit for additional context.
Delamottea emphasized the increasing prevalence of such scams, urging crypto users to exercise caution with trading tools promoted through unverified social media or video content. To defend against these scams, traders are advised to avoid deploying code promoted through influencer videos or social media posts, especially those promising quick, easy profits. Thorough research and validation of the tool's functionality are crucial before deployment, and anything promising effortless gains should be approached with skepticism.
