A shocking revelation has emerged in the cryptocurrency and gaming communities as blockchain investigator ZachXBT accused a former professional Fortnite player, known as Serpent, of orchestrating memecoin scams that stole $3.5 million. The scams allegedly leveraged hacked high-profile social media accounts and fraudulent cryptocurrency projects.
The accusations were detailed in a Nov. 27 thread on X (formerly Twitter), where ZachXBT linked wallet addresses associated with Serpent to several Pump.fun memecoin scams. The revelations not only highlight the growing intersection of gaming and blockchain but also expose vulnerabilities in social media security.
From Fortnite Fame to Fraud Allegations
Serpent’s Fall from Grace
Once a rising star in the Fortnite esports scene, Serpent’s career took a hit in 2020 when he was expelled from the esports organization Overtime for alleged cheating. Since then, he pivoted to blockchain security, positioning himself as a cybersecurity analyst and founder of a threat mitigation system called Sentinel.
A Dual Persona
Serpent’s public image was one of a digital guardian. He published guides warning users about phishing scams, fake websites, and airdrop frauds. However, ZachXBT’s investigation paints a darker picture, linking him to scams that exploited the very vulnerabilities he claimed to fight against.
The Mechanics of the Memecoin Scams
Hacking High-Profile Accounts
The memecoin scams allegedly began with the takeover of verified social media accounts belonging to celebrities, brands, and influencers, including McDonald’s, Usher, and Dean Norris. These accounts were used to promote fraudulent cryptocurrency projects under the guise of legitimacy.
Pump.fun Scams
Using these compromised accounts, scammers hyped up Pump.fun memecoins to attract unsuspecting investors. Once enough funds were funneled into the memecoins, the projects were abandoned—a classic rug pull.
Connections to Serpent
ZachXBT linked a wallet address associated with Serpent’s prior project, ERROR—allegedly another rug pull—to several of these account takeovers. The funds stolen through these scams were reportedly gambled away in online casinos.
Evidence Linking Serpent to the Scams
Blockchain Trail
ZachXBT’s investigation uncovered a clear blockchain trail. The wallet address tied to Serpent’s ERROR project had significant interactions with wallets used in the Pump.fun scams. Gambling platform deposits and withdrawals further connected these wallets to Serpent.
Digital Footprints
Following the first part of ZachXBT’s exposé, Serpent began deleting posts from his X account, raising further suspicion. The investigator also cited recordings showing Serpent gambling with funds linked to the scams.
A History of Exploits
In 2022, Serpent positioned himself as a cybersecurity expert, even warning about vulnerabilities in Google ads. However, his shift from protecting users to exploiting them underscores a troubling irony.
Victims of the Scam
High-Profile Casualties
The victims of these scams were not limited to retail investors. High-profile entities such as McDonald’s, the music icon Usher, and the owner of Kabosu (the Doge meme dog) had their accounts compromised to promote fraudulent memecoins.
Community Impact
The scams not only resulted in financial losses but also eroded trust in the crypto space. For victims, the experience was a stark reminder of the importance of vigilance in a rapidly evolving digital landscape.
The Aftermath: Scrutiny and Cleanup
Serpent Under Fire
The allegations have led to intensified scrutiny of Serpent’s past projects, particularly ERROR, which ZachXBT labeled as a rug pull. His decision to erase posts from his X account has only fueled speculation about his involvement.
ZachXBT’s Role in Exposing Fraud
As a blockchain investigator, ZachXBT has built a reputation for uncovering fraudulent schemes. His meticulous tracing of blockchain transactions and analysis of digital behavior have once again shone a light on the darker corners of the crypto world.
Larger Implications for the Crypto Space
The Rise of Memecoin Scams
Memecoins, often launched as jokes or community-driven projects, have become fertile ground for scammers. Their volatility and lack of regulatory oversight make them an attractive target for bad actors.
Social Media Vulnerabilities
The use of hacked verified accounts highlights a broader issue: the need for stronger security measures on social media platforms. The ability of hackers to exploit trusted profiles underscores the importance of robust authentication protocols.
Community Awareness
The scams have reignited discussions about the need for investor education in the crypto space. Knowing how to identify red flags—such as overly hyped projects or anonymous developers—can help prevent similar incidents.
Looking Ahead: Prevention and Accountability
Strengthening Blockchain Security
The crypto industry must prioritize stronger security measures, including improved wallet tracing, fraud detection tools, and collaboration with law enforcement to track illicit activities.
Social Media’s Role
Social media platforms need to invest in advanced threat detection to prevent account takeovers. Enhanced verification processes and anomaly detection tools could help mitigate risks.
Calls for Regulation
While blockchain remains decentralized, there is growing pressure for regulatory frameworks to protect investors. Transparency in project funding, developer accountability, and legal recourse could deter bad actors.
A Warning for the Crypto Community
ZachXBT’s investigation into Serpent is a sobering reminder of the risks inherent in the crypto space. The alleged involvement of a public figure who once advocated for cybersecurity only underscores the complexities of trust in a digital world.
For investors, the lesson is clear: skepticism is essential. Whether it’s a hyped memecoin or a trusted social media account, due diligence is the best defense against scams.
As for the gaming and crypto communities, the Serpent case is a stark reminder that reputations can be deceiving—and that even the most unexpected figures can be complicit in fraud.
Also read: Polter Finance Halts Operations After $12M Flash Loan Hack