Australian Fortnite YouTuber SerpentAU, once celebrated for his exceptional in-game skills, now finds himself at the center of a significant crypto fraud scandal.

Blockchain investigator ZachXBT revealed that SerpentAU, whose real name remains undisclosed, played a major role in a $3.5 million theft scheme executed through meme coin scams. This marks a dramatic fall from grace for the former esports talent who was dropped from Overtime Gaming in 2020 following cheating allegations.

From Gaming Scandal to Crypto Fraud

ZachXBT’s detailed investigation highlights SerpentAU’s involvement in multiple account takeovers (ATOs). The YouTuber targeted high-profile entities, including McDonald’s, Usher, and the creator of the Kabosu meme coin.

“Over the past few months, I have been tracking a series of related compromises for McDonald’s, Usher, Kabosu Owner, Andy Ayrey, Wiz Khalifa, SPX 6900, etc on X & IG which has resulted in an estimated $3.5M+ stolen via launching Pump Fun meme coins,” the blockchain sleuth said.

These compromised social media accounts served to promote fraudulent cryptocurrencies, leading unsuspecting followers to invest heavily. For instance, the McDonald’s Instagram hack alone netted over $690,000 for scammers. The bad actor funneled the funds through blockchain wallets connected to SerpentAU.

Using timing analysis and on-chain tracking, ZachXBT linked funds from these swindles to gambling platforms like Stake and Roobet. SerpentAU reportedly wagered millions on these platforms. In one instance, a leaked Discord screen share revealed Serpent making high-value deposits and withdrawals tied to wallets implicated in the scams.

SerpentAU first gained notoriety in 2020 after being exposed for using macros, software tools that enabled unfair advantages in Fortnite’s Creative mode. Despite expressing remorse and attributing his actions to a lack of understanding of their severity, his career trajectory took a darker turn.

By 2022, SerpentAU had co-founded NFT (non-fungible token) and cryptocurrency projects such as DAPE and ERROR. Both of these projects collapsed amid accusations of fraudulent activity. These ventures set the stage for his deeper entanglement in blockchain-based scams.

As the details of SerpentAU’s involvement emerge, the repercussions extend beyond crypto. Victims of the scams are left grappling with significant financial losses. The esports community must confront the ethical lapses of one of its former stars. In an ironic twist, Serpent’s early apology for cheating in Fortnite included a plea for understanding.

“My actions were blurred by the money, influence, and experiences I was having,” SerpentAU had said.

These words now echo as a grim foreshadowing of his trajectory into crypto fraud. The case serves as a stark reminder of the changing nature of online fraud.

The role of social media platforms as conduits for malicious actors also becomes apparent. As ZachXBT continues to unravel the full scope of these schemes, the crypto and gaming communities reckon with the cost of misplaced trust in influential figures.

Meanwhile, this is not ZachXBT’s first major investigation. The blockchain sleuth has previously exposed significant frauds, including phishing scams targeting Coinbase users. He also revealed meme coin manipulations involving prominent figures like influencer Murad.

His work also led to the arrest of hackers linked to Genesis Trading creditors. Some also prompted the resignations of key figures in OpSec Williams after allegations of fraud came to light. ZachXBT’s consistent focus on uncovering deceit within the crypto ecosystem reflects the broader risks investors face.

Ethereum price remained supported above the $3,250 zone. ETH started a fresh surge and cleared the $3,550 resistance zone.

• Ethereum started a fresh increase from the $3,250 support zone.
• The price is trading above $3,500 and the 100-hourly Simple Moving Average.
• There was a break above a connecting bearish trend line with resistance at $3,375 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair is up nearly 10% and now consolidates gains near the $3,650 zone.

Ethereum Price Starts Fresh Surge

Ethereum price remained supported above $3,250 and started a fresh increase bearing Bitcoin. ETH was able to surpass the $3,350 and $3,400 resistance levels.

There was a break above a connecting bearish trend line with resistance at $3,375 on the hourly chart of ETH/USD. The bulls pumped the price above the $3,500 and $3,550 resistance levels. It gained nearly 10% and traded as high as $3,688.

The price is now correcting gains below the $3,650 level. Ethereum price is now trading above $3,550 and the 100-hourly Simple Moving Average. It is also above the 23.6% Fib retracement level of the upward move from the $3,254 swing low to the $3,688 high.

On the upside, the price seems to be facing hurdles near the $3,650 level. The first major resistance is near the $3,685 level. The main resistance is now forming near $3,720.

A clear move above the $3,720 resistance might send the price toward the $3,840 resistance. An upside break above the $3,840 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,950 resistance zone or even $4,000.

Downsides Supported In ETH?

If Ethereum fails to clear the $3,685 resistance, it could start another decline. Initial support on the downside is near the $3,585 level. The first major support sits near the $3,550 zone.

A clear move below the $3,550 support might push the price toward the 50% Fib retracement level of the upward move from the $3,254 swing low to the $3,688 high at $3,470. Any more losses might send the price toward the $3,350 support level in the near term. The next key support sits at $3,250.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 zone.

Major Support Level – $3,485

Major Resistance Level – $3,685

Data from analytics firm CoinGecko shows that Layer-1 native tokens grew by 7,000% in 2024. While major projects like Bitcoin and Ethereum recorded significant gains, other tokens saw notable growth in niche markets.

However, with Layer-2 projects rising in popularity, newly launched L1s faced an extremely competitive and harsh environment.

Layer-1 Tokens Surge in 2024

CoinGecko, a leading blockchain analytics firm, just posted a dramatic update on the 2024 crypto market. Layer-1 blockchain tokens have surged by over 7000% since January 2024, with several unexpected candidates growing fastest. The firm pointed to several trends, but Trump’s election victory further fueled the rally, sparking a broader bull market.

“The cryptocurrency market in 2024 went vertical, encouraged by Trump’s election victory. The demand for L1 solutions has surged… with competition picking up between L1 blockchains to claim the top spot. However, they face stiff competition from Layer-2 solutions, which aim to improve transaction speeds at a fraction of the costs,” CoinGecko claimed.

CoinGecko data showed that the classic examples (Bitcoin, Ethereum, Solana, etc) led in market cap, but some dark horse candidates overtook them in percentage growth. The biggest Layer-1 blockchain projects obviously hold a significant lead in many crucial areas; for example, the CEO of analytics firm CryptoQuant claimed Bitcoin could be a global currency by 2030.

Still, these advantages are not necessarily insurmountable. Although Bitcoin came perilously close to $100,000 last week, it never achieved this milestone. CryptoQuant data claimed that this blunted momentum could significantly delay this price point, thanks to overwhelming market greed. Some assets, however, are benefiting from different advantages.

Mantra (OM) recently reached an all-time high, emerging as a standout performer. CoinGecko attributed OM’s success to a partnership that connected it with the expanding RWA tokenization market. Similarly, AIOZ saw steady growth, supported by its content delivery network. CoinGecko also noted the rapid expansion of Layer-2 networks in this sector.

Despite this, CryptoQuant highlighted the intense competition in the Layer-1 blockchain market. Their analysis showed that most Layer-1 projects launched this year experienced significant losses. While established Layer-1 protocols benefit from their existing presence, the rising Layer-2 market makes it increasingly challenging for new protocols to succeed.