Blockchain investigator ZachXBT revealed that Serpent, a former professional Fortnite player, allegedly orchestrated a series of memecoin scams, causing investors to lose around $3.5 million. The details of the investigation were published in a report on X.
Accusations of Major Fraud
According to ZachXBT, Serpent used hacked social media accounts from companies and celebrities on X and Instagram to promote memecoins. He then reportedly crashed the tokens’ prices by draining liquidity from exchanges.
ZachXBT connected Serpent to hacked accounts belonging to McDonald’s, singer Usher, and other public figures to push memecoins. One example was the promotion of the GRIMACE token through McDonald’s Instagram account on August 21.
Following the posts, GRIMACE’s value skyrocketed, with its market cap rising from a few thousand dollars to $25 million in one day. ZachXBT estimates Serpent profited $690,000 from the scheme.
Further Schemes
Funds gained from McDonald’s promotions were reportedly used to launch another memecoin, SCHRADER, which was promoted through the hacked X account of actor Dean Norris. Some of the proceeds were later transferred to crypto casinos, where attempts were allegedly made to launder the money.
ZachXBT also identified transactions involving memecoins through platforms like Roobet, Stake, BC Game, and others. He noted that Serpent often showed his friends how he deposited and withdrew funds on Discord, helping trace the wallets.
This isn’t the first time Serpent has been involved in controversy. The report states that in 2020, he was kicked out of the esports organization Overtime for Fortnite cheating. Later, he tried to pivot to blockchain, but his tokens DAPE and ERROR also ended in fraud accusations.
After the investigation’s findings were published on November 26, Serpent began deleting his posts on X.
Read the full report via the link.