Crypto Trading Bot Scam on YouTube Drains Over 256 ETH, Says SentinelLABS
A sophisticated crypto scam using fake trading bots advertised via aged YouTube accounts has stolen over 256 ETH, according to a new report by cybersecurity firm SentinelLABS. The scheme relies on deceptive smart contracts and misleading influencer-style content to trick unsuspecting traders into voluntarily funding wallets controlled by scammers.
Scam Spread via Aged YouTube Channels
The scam, which has been active since at least 2024, involves compromised or purchased YouTube accounts with a history of posting crypto-related news, investing tips, or pop culture content. These accounts are used to promote videos claiming to offer smart contract codes for automated crypto trading bots.
However, as Alex Delamottea, a senior threat researcher at SentinelLABS, explains, the smart contract is actually embedded with malicious code. Once deployed by the victim, the contract quietly adds the attacker’s wallet, masked as a legitimate trading address. When the victim funds the contract, the attacker can then drain the wallet entirely.
“The crypto ecosystem is increasingly complex, and scams like these will inevitably succeed against users who don’t fully analyze the tools they’re using,” Delamottea warned.
Over $939,000 in ETH Stolen
Victims are typically asked to deposit at least 0.5 ETH (roughly $1,829 at current prices) under the guise of covering gas fees and making the bot “profitable.” SentinelLABS found that just three wallets involved in the scam had collected:
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244.9 ETH
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7.59 ETH
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4.19 ETH
In total, more than 256 ETH (over $939,000) has been stolen. The same scammer wallet was observed across multiple malicious smart contracts, though it remains unclear how many unique actors are behind the broader campaign.
AI-Generated Videos and Comment Manipulation
Delamottea noted that many of the scam videos show signs of AI generation, both in audio and visuals, allowing scammers to churn out multiple fraudulent clips without revealing their identities.
To further manipulate perception and suppress warnings:
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Negative comments are actively deleted
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Fake testimonials praise the bot’s profitability
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Some users have sought out Reddit for more truthful context
The use of older, seemingly legitimate channels helps the scam evade suspicion and boosts the video rankings in search results.
Crypto Users Warned: Avoid Code Promoted via Social Media
SentinelLABS urged crypto traders to be cautious of any tool or smart contract promoted via social media or video content, especially those that promise easy profits.
“Don’t deploy code you found in influencer videos,” Delamottea emphasized.
“Always research how it works, validate the logic, and remember: if it sounds too good to be true, it probably is.”
Conclusion
As the cryptocurrency landscape grows more complex, scams are evolving with it — using a mix of technical deception and social engineering to steal user funds. The YouTube trading bot scheme is yet another reminder that crypto users must remain skeptical, avoid shortcuts, and never trust code from unverified sources.
