Old YouTube channels that once posted tech or crypto videos are now being used to promote a scam, according to an August 5 report from SentinelLABS.
The videos encourage viewers to copy and deploy a smart contract that promises easy trading profits.
Once the contract is activated, a wallet controlled by the scammer is added to the code. It is disguised to look like a normal trading address, so victims do not notice anything strange.
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When the user deposits funds, usually at least 0.5 ETH
This scam has been ongoing since at least 2024, promoted through videos shared across social media. The most recent example shows one wallet collecting 7.59 ETH, another with 4.19 ETH, and a third holding 244.9 ETH. Combined, that is about 256 ETH, worth more than $939,000.
The videos often feature generated voices and faces generated by artificial intelligence (AI). SentinelLABS said this makes it easier for scammers to quickly produce more content without revealing who they are. They also delete any negative comments and leave fake messages from people claiming they made money using the bot.
SentinelLABS researcher Alex Delamottea explained that many victims likely do not take the time to check how the smart contracts actually work. Because of this, users are often misled by instructions that appear helpful on the surface.
Delamottea advised avoiding any code shared through videos or posts that promise fast profits.
Recently, cybersecurity firm Check Point warned that over 10 million people may have been exposed to malware through fake crypto apps promoted via online ads. How did the attacker pull it off? Read the full story.
