Cybersecurity agency SentinelLABS has uncovered a classy rip-off marketing campaign that has siphoned over $900,000 from unsuspecting crypto customers.
In response to the report, the attackers use malicious Ethereum-based sensible contracts disguised as buying and selling bots to focus on people who comply with seemingly instructional content material on YouTube.
The report added that these scams have been energetic since early 2024 and always evolve by new movies and accounts.
How the rip-off works
The fraudulent scheme revolves round YouTube movies that supply tutorials on deploying automated buying and selling bots, particularly Maximal Extractable Worth (MEV) bots, by the Remix Solidity Compiler, a preferred web-based IDE for sensible contract improvement.
These movies direct viewers to obtain sensible contract code from exterior hyperlinks. As soon as deployed, the contracts are programmed to empty funds straight from the person’s pockets.
The scammers spend money on growing older YouTube accounts to seem credible, populating them with off-topic or seemingly official crypto-related content material. This technique helps increase visibility whereas constructing the phantasm of belief.
AI-generated movies
A notable tactic on this marketing campaign is using AI-generated movies. In response to the agency, lots of the tutorial clips function artificial voices and faces with robotic tones, unnatural cadence, and stiff facial actions.
This strategy permits the perpetrators to quickly produce rip-off content material with out hiring actual actors, considerably decreasing operational prices.
Nonetheless, probably the most profitable video uncovered by SentinelLABS—liable for draining over $900,000—seems to have been created by an actual individual, not an AI avatar. This implies that whereas automation enhances scalability, human-generated content material should drive larger conversion charges.
In the meantime, SentinelLABS additionally discovered a number of iterations of the weaponized contracts, every utilizing various obfuscation methods to cover attacker-controlled Externally Owned Accounts (EOAs).
Whereas some contracts shared a typical pockets handle, many others used distinct locations, making it troublesome to find out whether or not the marketing campaign is the work of a single entity or a number of risk actors.
Contemplating this, SentinelLABS warned that mixing Web3 instruments, social engineering, and generative AI presents a rising risk panorama.
The agency urged crypto customers to confirm all exterior code sources and stay skeptical of too-good-to-be-true buying and selling bots—particularly these promoted through unvetted YouTube tutorials
