YouTube Crypto Bot Scam Drains 256 ETH Using Fake Smart Contracts: SentinelLABS
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A widespread crypto scam campaign using aged YouTube accounts has successfully stolen over 256 ETH (worth approximately $939,000) from unsuspecting traders, according to a new report from SentinelLABS.
Cybercriminals are hijacking old YouTube accounts—some with years of crypto content history—to promote fraudulent smart contracts disguised as profitable crypto trading bots. These bots are shared through seemingly legitimate tutorial videos, but once deployed, the smart contract silently grants access to the scammer’s wallet.
“The scam is ongoing and spreading via YouTube and social media,” said Alex Delamottea, senior threat researcher at SentinelLABS.
Once the victim funds the contract—typically with at least 0.5 ETH to cover gas and enable “profits”—the scammer can immediately drain the wallet using a hidden access method disguised as a trading function.
These wallets are all linked to weaponized smart contracts and have collectively drained over 256 ETH, the report noted.
While some of the scammer wallets are reused, many are unique—indicating either a large-scale single operation or multiple actors copying the method.
AI Videos, Deleted Comments, and Fake Testimonials
Scammers are using AI-generated videos to produce tutorials with synthetic voiceovers and visuals, making it easy to scale. To build trust, the YouTube channels often show crypto investing content history, helping them rank higher in search results.
“These channels may be purchased on Telegram or found via search engines,” Delamottea explained.
To maintain credibility, negative YouTube comments are deleted, and fake testimonials claiming success with the bot are regularly posted. However, savvy users have begun flagging the scam on Reddit, exposing the fraud.
“Scams like these will inevitably succeed against victims who don’t scrutinize the tools they’re using.”
Crypto users are strongly advised to review smart contract code before deploying it or funding any wallet. The lure of passive profits remains a top bait used by crypto scammers.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.
