A recent report from SentinelLABS highlights the alarming emergence of a crypto scam that is utilising compromised YouTube channels to promote a fraudulent Ethereum trading bot. This campaign cleverly deceives users into unwittingly deploying a malicious smart contract designed to siphon their funds.
### Overview of the Scam
The scam has been detected since early 2024, taking advantage of dormant YouTube accounts that previously featured crypto-related content. According to SentinelLABS researcher Alex Delamotte, these accounts have been repurposed to host videos—many of which are generated by AI—advertising a bogus Ethereum trading bot.
When users engage with the bot, they unknowingly execute a smart contract that incorporates a hidden wallet address, masquerading as a legitimate trading function. Once the user deposits funds, the money is transferred directly to the scammer’s wallet.
### Mechanism of Deception
The videos promoting this fraudulent bot are finely crafted to avoid raising suspicion. They are uploaded on established channels with significant visibility, complete with synthetic voiceovers, animations, and an array of fictitious testimonials embedded in the comment sections. Potential victims are typically urged to deposit a minimum of 0.5 ETH, approximately US$1,790 (AU$2,742), under the guise of covering transaction fees and accessing larger financial rewards.
Moreover, critical comments are swiftly removed to maintain the illusion of legitimacy. It is worth noting that these deceptive videos are unlisted on YouTube, meaning they do not appear in search results or on the creator’s profile. Delamottea suggested that the scammers likely distribute these links via social media platforms, including Telegram, with indications leading to handles like @janesolidity.
### Financial Impact
Delamottea’s investigation uncovered at least three wallets directly associated with the scam: one holding 244.9 ETH, another with 7.59 ETH, and a third containing 4.19 ETH. Collectively, these wallets have amassed stolen funds worth over US$939,000 (AU$1.4 million). The same wallet address appeared across various iterations of the malicious contract; however, the use of multiple unique addresses complicates the understanding of whether a single group or multiple actors are orchestrating these attacks.
### The Risk Landscape
The channels utilised in the scam are likely either hijacked or purchased from Telegram and other public marketplaces that trade old YouTube accounts. As reported, these scams exemplify a highly engineered approach, demonstrating the lengths to which fraudsters will go to exploit unsuspecting users.
### Conclusion
This scam serves as a stark reminder of the vulnerabilities within the cryptocurrency landscape, particularly in relation to social media platforms. Users must remain vigilant and sceptical of such offers, especially when they are presented through unlisted videos or unfamiliar channels. It is crucial for the community to raise awareness and educate individuals about the potential risks associated with digital currencies and fraudulent schemes. As the sophistication of these scams increases, so too must the efforts to combat them.
