Ethereum Scammers Pose as Trading Bots to Steal Crypto

Understanding the Rise of Fake Trading Bots in the Crypto Space

In recent years, the cryptocurrency market has seen a surge in innovative tools and platforms designed to help traders make better decisions. However, this growth has also attracted malicious actors who exploit the trust and curiosity of users. One such threat involves fake trading bots that have been used to siphon funds from Ethereum and other digital assets.

These scammers operate through social media and video content distribution, often using YouTube as their primary platform. The videos typically present themselves as legitimate guides for deploying smart contracts on Remix Solidity Compiler, with claims that these tools are arbitrage or MEV (Miner Extractable Value) bots capable of generating profit. This deceptive approach is aimed at targeting both novice and experienced crypto traders looking for an edge in the market.

Tactics Used by Scammers to Build Credibility

To appear more trustworthy, these fraudsters often use older YouTube accounts that have built up a history of activity. They post playlists containing cryptocurrency news and off-topic content, which helps increase the account's visibility and credibility. This strategy makes the accounts seem like reliable sources of information within the crypto community.

Many of these videos are AI-generated, featuring narrators with unnatural voice tones and a direct gaze toward the camera. These characteristics can be telltale signs of fabricated content. While AI-generated videos are cost-effective compared to hiring human actors, some of the most successful scams were not created using AI. For example, one particular video managed to steal over $900,000 from victims, highlighting the effectiveness of well-crafted deception.

Specific Channels and Their Roles

Several YouTube channels have been identified as part of this scam operation. One channel, @todd_tutorials, posted step-by-step deployment instructions for malicious contracts. Although the video was later made private, it exhibited clear AI characteristics. Another channel, @SolidityTutorials, featured similar content in April 2024 presentations.

The most successful scam video was created by @Jazz_Braze, titled "MEV Bot tutorial." This video gained over 387,000 views and appeared more legitimate than others. The account had uploaded nearly 100 pop culture videos between 2022 and 2024, building a reputation over time. Old YouTube accounts can be sold for prices ranging from $6 to thousands on Telegram channels, further emphasizing the value of established online presence.

Hiding the Attackers' Tracks

The malicious smart contracts embedded in these fake trading bots are written in the Solidity programming language. These contracts target Ethereum and other blockchain networks, aiming to steal funds from unsuspecting users. To avoid detection, attackers employ various obfuscation techniques to hide their wallet addresses within the smart contract code.

SentinelLABS discovered multiple methods of obfuscation, including XOR operations, string concatenation, and large decimal conversions. These tactics make it difficult for users to trace the source of the theft. The contracts are designed to look like legitimate MEV bots, monitoring price differences across exchanges and giving users the illusion of profitability.

Financial Impact and Money Laundering Techniques

The financial impact of these scams has been significant. A recent April 2025 scam generated 7.59 Ethereum, valued at approximately $28,000. Another scam, linked to the @SolidityTutorials channel, netted 4.19 ETH, totaling around $15,000. However, the most profitable campaign was led by @Jazz_Braze, whose video generated 244.9 ETH, worth approximately $902,000.

After collecting the stolen funds, the attackers moved them to 24 different Ethereum addresses. This distribution pattern suggests sophisticated money laundering operations, as it helps evade detection and tracking. The scams have continued to evolve, with attackers managing comment sections to delete negative feedback and maintain a false sense of legitimacy.

Ongoing Threats and User Awareness

Despite efforts to curb these activities, the scams continue to target new victims through social media platforms. Users often turn to alternative platforms like Reddit when YouTube comments get censored. As the crypto landscape continues to grow, so too do the methods employed by scammers. It is crucial for users to remain vigilant and educate themselves on the risks associated with fake trading bots and other fraudulent activities.