• 02 November, 2024
News

Crypto Sleuth Alleges YouTuber Blue of $1.5 Million Crypto Scam

Crypto Sleuth Alleges YouTuber Blue of $1.5 Million Crypto Scam

Prominent crypto detective ZachXBT has exposed the allegedly fraudulent activities of popular YouTuber ‘Blue,’ linking him to a series of cryptocurrency scams that have reportedly swindled over $1.5 million.

Originally gaining traction through gaming and trolling content, Blue, also known as Jack, amassed an impressive 122,000 YouTube subscribers before purportedly diving headfirst into the world of crypto scams in 2021.

Zach’s investigations revealed that a leaked Snapchat post from Blue connected him to the Ethereum ENS address Cool-breeze. eth, which bought the Bored App Yacht Club 8668 NFT in October 2022. Further research into this address reportedly disclosed over 85 Ethereum (ETH), amounting to roughly a third of the stolen funds, directly linked to addresses associated with the infamous Monkey Drainer phishing scam.

The Monkey Drainer, a notorious crypto scheme, is known for stealing as much as $24 million. After ceasing operations in February this year, its developer left a message urging young cybercriminals to avoid the lure of quick money and encouraged clients to switch to a rival service, Venom.

Monkey Drainer was involved in a major attack last year where a project lost more than 700 ETH in October 2022. Although its closure may alleviate some concerns, scams remain a persistent problem in the market.

ZachXBT alleged that Blue boasted about his successful scams and BAYC NFT acquisitions on Discord, sharing screenshots from internal Discord servers as evidence that Blue was educating others about his fraudulent methods.

Following a dispute with Monkey Drainer over a specific phishing scam that resulted in the theft of his BAYC, Blue allegedly continued his illicit activities under a new ENS address, peddling a range of items, including watches, cars, and even Roblox items.

According to ZachXBT, Blue’s primary scamming approach involved spamming Twitter with verified accounts. As an example, Zach highlighted the plight of user @g13m, who fell prey to a phishing scam in July, losing around $213,000 in Ethereum and Tether (USDT) to counterfeit Doodle NXTs. Blue allegedly deposited 49 ETH and $74,000 in USDT following the scam after accounting for the drainer fee.

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