Introduction
Blockchain investigator ZachXBT has made serious allegations against an Australian former professional Fortnite player known as Serpent, claiming that he masterminded several memecoin scams that reportedly swindled over $3.5 million from unsuspecting victims. The investigation, detailed in an extensive thread on November 27, connects Serpent to numerous fraudulent activities linked to hacked social media accounts and deceitful cryptocurrency initiatives.
Background on Serpent
Serpent, who previously played Fortnite at a professional level, faced expulsion from the esports organization “Overtime” in 2020 due to allegations of cheating. Despite this setback, he then presented himself as a blockchain security analyst and positioned himself as the founder of a threat mitigation system known as Sentinel. However, recent findings suggest a stark contrast between his public persona and his alleged criminal activities.
Connection to Pump.fun Scams
The investigation revealed that wallet addresses associated with Serpent were closely linked to the infamous Pump.fun memecoin scams, which exploited hacked accounts on platforms such as X (formerly Twitter) and Instagram. Notable high-profile account takeovers attributed to Serpent include those of celebrities like Usher, Wiz Khalifa, and corporate entities such as McDonald’s.
Gambling and Fund Misappropriation
ZachXBT further accused Serpent of misappropriating funds acquired from these scams, indicating that he indulged in extensive online gambling. According to ZachXBT, Serpent gambles millions on various platforms, including Roobet, Stake, BC Game, and Shuffle, often while screen-sharing with friends on Discord. The investigator provided recordings where Serpent inadvertently leaked several deposit and withdrawal addresses linked to these gambling activities.
Allegations Against ERROR Project
In addition to his scams, Serpent was also allegedly involved in a project named ERROR, which ZachXBT has labeled a “rug pull.” This project’s wallet address was reportedly associated with numerous hacked accounts, further implicating Serpent in fraudulent operations. Following the revelations, Serpent has begun to delete posts from his X account, which has only intensified suspicions regarding his activities.
Contradictory Public Persona
Despite his alleged involvement in scams, Serpent previously portrayed himself as a cybersecurity advocate, sharing guides on how to avoid scams and informing users about phishing threats and fake airdrops. In 2022, he expressed concerns about vulnerabilities in Google ads, demonstrating an apparent understanding of cybersecurity issues—a stark contrast to the recent allegations against him.
The Ongoing Threat of Cybercrime
Phishing attacks and cryptocurrency-related scams pose significant risks to users, leading to substantial financial losses. In a recent example, U.S. federal prosecutors charged five individuals involved in a sophisticated hacking operation that stole $11 million in cryptocurrency and sensitive information. The court filings revealed that these hackers targeted at least 29 individuals, with one victim losing more than $6.3 million after their email and digital wallets were compromised.
Government Response and Measures Taken
The ongoing battle against cybercrime has seen the Department of Homeland Security (DHS) actively disrupting crypto scams. Since 2021, DHS investigators have intercepted over 537 ransomware attacks, preventing widespread damage and reclaiming billions in extorted cryptocurrency. The efforts by the Homeland Security Investigations (HSI) Cyber Crimes Center have been crucial in safeguarding U.S. government agencies, which have increasingly become targets of these cyber threats.