Crypto Scam: YouTuber Ice Poseidon Reportedly Steals $500,000 From Fans By Convincing Them to Invest in CxCoin

Joseph Henry, Tech Times 02 February 2022, 12:02 am

Paul Denino who is better known as "Ice Poseidon" on Twitch and YouTube has been involved in an alleged crypto scam. According to the latest reports, the streamer reportedly netted $500,000 from his fans who invested in CxCoin, which he created to set up this scheme.

Ice Poseidon Behind Crypto Scam

According to a recent report by Kotaku, Ice Poseidon was caught red-handed on YouTube after fellow YouTuber Coffeezilla uncovered the crypto operation that he pulled off.

Allegedly, he orchestrated a pump and dump scheme to take home a hefty amount of money from them. Amid the rise of fraudulent activities in the blockchain space, this was the most recent event that took place on YouTube so far.

Denino was first streaming on Twitch before he went to YouTube to create his own channel. He began on Twitch but later faced a permanent ban on April 28, 2017. The incident involved him and the other person.

At that time, he became the first streamer to be "swatted" on an airplane. From California, he landed in Arizona through a plane. Upon reaching the destination, a viewer announced that there was a bomb threat under Ice Poseidon's guise.

What Really Happened to Denimo's Crypto Scam

Crypto Scam: YouTuber Ice Poseidon Reportedly Steals $500,000 From Fans By Convincing Them to Invest in CxCoin

(Photo : Ice Poseidon via YouTube screenshot)
Ice Poseidon

In another article written by Notebook Check, the streamer convinced his viewers to put their money in his own cryptocurrency, which he called CxCoin. He told his fans that their investment would be good for long-term plans.

When he got the investment money from his fans, Denino conducted a rug pull for the said crypto. A rug pull is basically an event wherein the coin creator suddenly withdraws all of the investments in an account.

In short, this would mean abandoning the cryptos in his accord and leaving fans with nothing to gain. Usually, scammers pull this trick to gain high profit without exerting extreme effort.

Where Did the Money Go?

The report added that upon pocketing $500,000 from the scam, Denino reportedly gave $200,000 to the developers who connived with his tactic.

The remaining $300,000 was allegedly spent on a new Tesla car. As evidence, he posted a live stream on YouTube which showed that he picked the car in summer.

Amid complaints about this scam, another YouTuber named Coffeezilla shed some light on his viewers. The content creator posted a 23-minute clip that summarized how Ice Poseidon deceived his fans into investing in a dump-and-scheme coin.

Other Incidents of Crypto Scams

In April 2021, Tech Times found out that a 17-year-old TikToker was involved in a Mando crypto scam. The digital coin borrows inspiration from "Star Wars," hence Mandalorian-themed currency.

After promoting this cryptocurrency on his platform, the influencer found out that it was only a pump-and-dump scheme. He said that he had no idea about it. He later apologized to everyone for fooling them, including himself.

In another story from the same source, "Moon Nation" founder Ben Todar issued a warning to all investors who might encounter a fake account impersonating him. On Twitter, he voiced his concern about a suspicious user who was using his identity.

He warned the people to never give their money or seed phrase to the cybercriminal behind the bogus account.

This article is owned by Tech Times

Written by Joseph Henry