tl;dr
Cybersecurity firm SentinelLABS has uncovered a scam campaign that has stolen over $900,000 from crypto users via malicious Ethereum smart contracts disguised as trading bots. The scammers use YouTube videos offering tutorials on deploying MEV bots, directing viewers to deploy harmful contracts that...
Cybersecurity firm SentinelLABS has uncovered a sophisticated scam campaign that has siphoned over $900,000 from unsuspecting crypto users. The attackers use malicious Ethereum-based smart contracts disguised as trading bots to target individuals who follow seemingly educational content on YouTube. Active since early 2024, the scams constantly evolve through new videos and accounts.
The fraudulent scheme revolves around YouTube videos offering tutorials on deploying automated trading bots, specifically Maximal Extractable Value (MEV) bots, via the Remix Solidity Compiler. These videos direct viewers to download smart contract code from external links. Once deployed, the contracts are programmed to drain funds directly from the user’s wallet.
Scammers invest in aging YouTube accounts to boost credibility, filling them with off-topic or legitimate-looking crypto content to build trust and increase visibility. A notable tactic is the use of AI-generated videos featuring synthetic voices, robotic tones, and stiff facial movements, enabling rapid production of scam content without hiring actors and reducing costs.
However, the most lucrative scam video, responsible for draining over $900,000, appears to have been created by a real person rather than an AI avatar, suggesting that human-generated content may lead to higher conversion rates despite the scalability offered by automation.
SentinelLABS also discovered multiple versions of the malicious contracts employing various obfuscation techniques to conceal attacker-controlled wallets. Some contracts share wallet addresses, while others use distinct destinations, complicating efforts to identify whether one group or multiple actors are responsible.
The firm highlighted the growing threat landscape created by the combination of Web3 tools, social engineering, and generative AI. SentinelLABS urges crypto users to verify all external code sources and remain skeptical of too-good-to-be-true trading bots, particularly those promoted through unverified YouTube tutorials.