A Playground for Crypto Con-Artists
YouTube has become a dangerous platform in regards to money laundering, specifically within the new and burgeoning world of crypto. The hidden methods of laundering money using cryptocurrencies on YouTube have become commonplace and extremely detrimental to users who are looking to invest and find new opportunities to make money online.
Due to the rapid growth of crypto and blockchain technology, individuals who lack financial literacy and have little to no background in fintech (financial technology) are most vulnerable and likely to fall victim to these scams. Trending meme-coins and other fads have taken social media by storm, exposing potential victims to enticing get-rich-quick schemes causing many to feel FOMO.
On YouTube, these scams are hidden in plain sight under the guise of “crypto tutorials” and “crypto trading methods”. Many YouTube creators pose as cryptocurrency experts and seasoned investors, but in reality, they are neither.
Warning Signs for YouTube Fraud
With the development of AI technology, the crypto world is facing new challenges. A prominent issue being deepfakes, in other words, fabricated media generated by AI tools, which impersonate real people and credible public figures. This, unfortunately, has caused a steep rise in identity fraud, by deceiving victims who fail to differentiate between what is real and what is AI-generated.
Two prominent examples of high-stature public figures often used in deepfakes are Elon Musk, a business mogul, and Tim Cook, CEO of Apple. The likeness of billionaires is a favorite amongst crypto con artists. AI Musk advised users to deposit crypto with a guaranteed return of double what was invested. This YouTube stream, from a fake Tesla YouTube account, amassed over 95 thousand viewers. Likewise, AI Tim Cook’s stream promoted a crypto scam that promised to double your Bitcoin and Ethereum within minutes of making the investment, garnering over 200 thousand viewers.
Social Media’s Role
In 2024, illicit cryptocurrency volumes exceeded a massive $50 billion. It may seem preposterous to some, but the reliance on social media and platforms such as YouTube for those seeking crypto-related advice is evidently mainstream. It is now widely understood that a cryptocurrency’s success is highly dependent on its popularity on social media.
One example from 2024 comes from CTV News, the news division of the Canadian television network, which reported that a video on YouTube convinced a woman from Toronto to invest 340 thousand dollars into what ended up being a cryptocurrency scam. After reaching out to the creators, they called and manipulated her into making increasingly larger investments.
The anonymous company kept her updated with fabricated investment gains encouraging her to invest more and more. She is just one of many victims to fall for YouTube crypto fraud, according to the Canadian Anti-Fraud Centre, Canadians lost over $94 million to crypto investment fraud in 2024 alone.
Memecoin Mania
The most recent example of meme-coin mania is the United States’ newly elected President Trump’s meme-coin “$TRUMP”, which went viral on YouTube and other social media platforms. It garnered a sizable market cap of around $14 billion within hours of launching, yet taking less than two days for it to crash by approximately 40%.
Many creators on YouTube were involved in spreading the hype of his meme-coin, claiming it as an opportunity of a lifetime. Reputable investors and economists such as Ari Paul, Chief Investment Officer at BlockTower Capital, referred to President Trump’s memecoin as a blatant cash-grab, swindling many of his supporters for billions.
Raising Awareness
There are countless creators on YouTube promoting all sorts of meme coins and crypto trading bots promising to make their viewers rich. The majority of these creators leave links to their private communities and online courses, deceiving their audiences and oftentimes stealing from them outright.
For example, the Financial Markets Authority, a New Zealand government agency responsible for financial regulation, has stated that YouTube channels invite viewers to join private WhatsApp or Telegram groups for discussions on crypto investments. Scammers will introduce users to fraudulent investment platforms, and these fake platforms often mimic familiar cryptocurrency exchanges.
Crypto Investment Comprehension
When investing, it is crucial to know what you are buying and who you are buying from. This is true for all kinds of investments, though especially for investments you have only recently learned about.
For those new to crypto, buying from centralized exchanges such as Kraken, Coinbase, and Binance is more reliable than buying from non-KYC exchanges, decentralized exchanges, and untrusted/unrated platforms. The latter lack- transparency, oversight, strict regulations, and compliance to the laws in place. It is also necessary to check domains and when the websites were created. Nominis, among other threat intelligence companies, work towards enhancing security and ensuring regulatory compliance for crypto investors.
Getting crypto investment tips and financial advice from YouTube should be received with great caution. Viewers must always question whether their source of information is adequate or real because of the inherent risks pertaining to the credibility and reliability of social media, content creators, and influencers.
FAQs
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