From Gaming Scandal to Crypto Fraud: The Fall of SerpentAU

Australian Fortnite YouTuber SerpentAU, once celebrated for his exceptional in-game skills, now finds himself at the center of a significant crypto fraud scandal.

Australian Fortnite YouTuber SerpentAU, who was dropped by Overtime Gaming in 2020 over cheating allegations, is now at the center of a crypto fraud scandal.

Blockchain investigator ZachXBT revealed that SerpentAU, whose real name is still a mystery, played a major role in a $3.5 million theft scheme that involved meme coin scams.

According to ZachXBT’s investigation, SerpentAU was involved in several account takeovers (ATOs). The YouTuber targeted high-profile entities, including McDonald’s, Usher, and the creator of the Kabosu meme coin.

“Over the past few months, I have been tracking a series of related compromises for McDonald’s, Usher, Kabosu Owner, Andy Ayrey, Wiz Khalifa, SPX 6900, etc on X & IG which has resulted in an estimated $3.5M+ stolen via launching Pump Fun meme coins,” the blockchain sleuth said.

The compromised social media accounts were used to promote fraudulent cryptocurrencies, which led to several followers investing large sums of money in these scams. For example, the McDonald’s Instagram hack alone helped scammers net over $690,000.

The funds from these scams were then funneled into blockchain wallets that are linked to SerpentAU.

Using timing analysis and on-chain tracking, ZachXBT was able to connect the funds from these scams to gambling platforms like Stake and Roobet.

SerpentAU reportedly wagered millions on these platforms. In one instance, a leaked Discord screen share showed Serpent making high-value deposits and withdrawals that were tied to wallets used in the scams.

SerpentAU first gained attention in 2020 when he was caught using macros, which are software tools that give players an unfair advantage in Fortnite’s Creative mode.

Despite expressing remorse and claiming that he didn’t realize the severity of his actions, SerpentAU’s career took a darker turn.

By 2022, SerpentAU had co-founded several NFT (non-fungible token) and cryptocurrency projects, including DAPE and ERROR.

However, both of these projects collapsed amid accusations of fraudulent activity. These ventures ultimately set the stage for SerpentAU’s deeper involvement in blockchain-based scams.

As more details about SerpentAU’s involvement continue to emerge, the fallout is expected to extend beyond the realm of crypto.

Victims of these scams will have to deal with the significant financial losses, while the esports community will be forced to grapple with the ethical transgressions of one of its former stars.

In a twist of irony, Serpent’s early apology for cheating in Fortnite included a plea for understanding.

“My actions were blurred by the money, influence, and experiences I was having,” SerpentAU said at the time.

Now, these words serve as a chilling foreshadowing of his trajectory into crypto fraud.

The case highlights the evolving nature of online fraud and the role of social media platforms as conduits for malicious actors.

As ZachXBT continues to uncover the full extent of these schemes, the crypto and gaming communities will have to reckon with the high cost of placing trust in influential figures, especially when it comes to matters of finance.

Meanwhile, this is not ZachXBT’s first major investigation. The blockchain sleuth has a history of exposing significant frauds, including phishing scams that targeted Coinbase users.

Additionally, ZachXBT uncovered meme coin manipulations that involved prominent figures like influencer Murad.

His work has also led to the arrest of Genesis Trading creditors and prompted the resignations of key figures in OpSec Williams following allegations of fraud.

Overall, ZachXBT’s work aims to uncover deceit within the crypto ecosystem and highlight the risks that investors face.