Crypto trader bot scam on YouTube looted 256 ETH: SentinelLABS

Aged YouTube accounts with a history of posting crypto news and investing tips have been taken over by bad actors to advertise a scam trading bot that steals crypto.

Cybersecurity firm SentinelLABS has warned that malicious actors are using old, seemingly legitimate YouTube accounts to promote a crypto trading bot that hides a smart contract designed to drain users’ funds.

The scam is “widespread and ongoing” since at least 2024 and has spread through YouTube videos shared on social media offering tips and a smart-contract code to deploy a crypto trading bot, Alex Delamottea, a senior threat researcher with SentinelLABS, said in a report on Tuesday.

After the victim deploys the smart contract, the attacker’s wallet is added, hidden by disguising it as a trading address. When the user funds the contract, the scammer has access to drain the funds. The victim must fund the contract for the scam to work.