A Popular Youtuber Orchestrates a Crypto-currency Fraud in Order to Steal Us$500,000 From Viewers and Use the Money to Shamelessly Purchase a New Tesla
One of the most prominent game streamers on Twitch and YouTube has allegedly conned his fans out of half a million dollars through an apparent cryptocurrency fraud, which involved the creation of his cryptocurrency and the use of a basic pump and dump strategy.
Instead of repaying the money, he decided to spend it on a brand new Tesla, which was quite expensive.
Scams involving cryptocurrencies are unquestionably on the rise. In December, we reported on startling data claiming that such frauds and rug pulls will inflict at least US$7.7 billion in damages to cryptocurrency holders by 2021, according to a report by the Financial Times.
While many of these illegal operations are carried out by nameless scammers, one more or less prominent YouTuber has now supposedly joined their ranks and used the stolen funds to purchase a new Tesla vehicle.
Kotaku reports that the well-known streamer Ice Poseidon has managed to steal a total of US$500,000 from his fans by enticing them to invest in CxCoin, a cryptocurrency that he appears to have invented exclusively for running a pump and dump operation.
As soon as he had reassured his supporters that this would be a long-term investment, the streamer who goes by the true name of Paul Denino yanked the rug out from under them, causing the CxCoin cryptocurrency to plummet to the point where it was worth practically nothing.
Denino made US$500,000 from this scam, but he spent US$200,000 of that money to compensate the coders who assisted him in organizing the operation. A portion of the remaining US$300,000 was allegedly used to purchase a brand-new Tesla, which he hilariously demonstrated to the world through a live stream on YouTube when he picked it up last summer.
When he was confronted with these allegations by another YouTuber who goes by the name of Coffeezilla, he purportedly admitted to the cryptocurrency scam but quickly attempted to place the blame on his overly emotional fans while insisting that he would keep the majority of the money for himself, even though he was technically obligated to return all of the money to the victims.