Fraud in the cryptocurrency sphere continues to rise. SentinelLABS reports on scams utilizing fake trading bots to deceive Ethereum and other coin users.
Use of YouTube for Fraud
Scammers advertise fake crypto trading bots through YouTube videos explaining how to deploy smart contracts on the Remix Solidity Compiler. These tools are presented as legitimate arbitrage or MEV bots for profit.
There is a deliberate strategy of using older YouTube accounts to create a false sense of credibility. Initially, scammers post cryptocurrency news playlists and off-topic content to boost account rankings, making them seem like trusted sources.
Malicious Smart Contracts
The fake trading bots contain malicious smart contracts written in the Solidity programming language. These contracts target Ethereum and other blockchain networks for theft. Scammers employ various obfuscation techniques to hide their wallet addresses from victims.
The attacker-controlled wallet address remains concealed within the smart contract code, making detection difficult. SentinelLABS discovered multiple obfuscation methods, including XOR operations and string concatenation.
Financial Outcomes of Scam Operations
The scam campaigns have achieved varying degrees of financial success. For instance, a recent April 2025 scam collected 7.59 Ethereum worth approximately $28,000 from victims. Jazz_Braze’s video campaign stands out as the most profitable, netting 244.9 ETH, valued at around $902,000 from contract deposits. These funds were later withdrawn to other addresses in bulk transfers.
Scams in the cryptocurrency space using fake trading bots continue to pose significant threats to users. Scammers actively utilize social media platforms to lure new victims, highlighting the importance of vigilance in the cryptocurrency arena.
