Ex-Fortnite Player Accused of $3.5M Scam Using Memecoins

On November 27, blockchain investigator ZachXBT accused a former professional Fortnite player and Australian blockchain security analyst, Serpent, of orchestrating multiple memecoin scams totaling $3.5 million.

Allegations of Memecoin Scams Surface

ZachXBT highlighted links between Serpent’s wallet addresses and high-profile account takeovers in an X thread. The scams involved the launch of fraudulent meme coins under the Pump. fun brand.

According to ZachXBT, hacked social media accounts, including those of McDonald’s, Usher, and Dean Norris, were used to promote these coins.

Serpent, previously expelled from the esports organization Overtime in 2020 for alleged cheating, is also the founder of a security initiative called Sentinel, according to Ginx. tv.

“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,” ZachXBT wrote.

The investigator presented blockchain data as evidence, revealing that a wallet linked to Serpent’s ERROR project—a rug pull—was connected to the compromised accounts. Notably, ZachXBT claimed that Serpent gambled the stolen proceeds in online casinos.

To support his findings, the investigator shared recordings of Serpent’s gambling sessions, showing deposit and withdrawal addresses matching those tied to the scams.

After the first part of the investigation was released on November 26, Serpent started removing all his posts from his new X account.

1/ 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. pic.twitter.com/ViZeHzQy5b

— ZachXBT (@zachxbt) November 26, 2024

Increasing Sophistication of Memecoin Scams

Adding to concerns about meme coin fraud, researchers have uncovered schemes where scammers use “trending” lists on platforms like GMGN to lure victims.

2. Once you have chosen a token, you need to check who holds it.

If you see that a significant portion of the supers is in the hands of Devs or snipers, it's a bad sign.

Also, a wallet is suspicious on GmGn if it could interact with others, engage in insider activity, snipe a… pic.twitter.com/MKyMgmae9r

— plutos (@plutos_eth) November 22, 2024

By creating coins with hidden code that lets them steal users’ tokens, attackers inflate trading volume to push these coins onto trending lists.

Victims buy the tokens thinking they are popular, only to have their wallets drained. Such tactics expose the dangers of deceptive practices in the crypto ecosystem.

Serpent’s security project, Sentinel, further complicates the narrative. Marketed as a threat mitigation system, Sentinel’s credibility is now in question.

ZachXBT’s findings suggest that the individual behind the system may have simultaneously engaged in fraudulent activities, undermining their professional standing.

This is not the first controversy involving Serpent. In 2020, gaming network Ginx.tv reported that Serpent was ousted from Overtime for cheating during Fortnite tournaments.

This history of questionable behavior, coupled with the current allegations, casts doubt on his integrity within the blockchain and gaming communities.

The growing prevalence of crypto scams highlights the sophistication of cybercriminal networks like Scattered Spider, recently charged with stealing $11 million through phishing and SIM-swapping schemes.

This group’s methods included draining wallets and exploiting vulnerabilities in digital systems, similar to the tactics used in memecoin frauds.