The Rise and Fall of an Australian Crypto Scammer: A Deep Dive into the Dark Side of Digital Currency

A Sudden Influx of Emails

On an otherwise mundane evening, my email inbox was suddenly bombarded with a flurry of messages.

The influx was overwhelming, with new emails arriving faster than I could even begin to read them.

Many of these messages originated from unfamiliar websites, such as Peel Up n Dye and British Hoverboards.

Some emails were written in foreign languages, while others contained nothing but jumbled text.

Individually, these emails were meaningless; collectively, they served to clutter my inbox.

The underlying motive behind this digital assault—harassment and intimidation—pointed to a specific sender.

Uncovering a Scammer’s Identity

A recent interaction with an Australian cryptocurrency fraudster opened a window into a shadowy world filled with extortion, hacking, and gambling addiction.

Earlier that day, I had been investigating a young Australian known only as Serpent, who had garnered serious allegations related to a series of cryptocurrency scams, hacked social media accounts, and substantial financial gains.

With Australians reportedly losing around $1.3 billion to investment scams in 2023, this was a unique opportunity to explore the mindset of a scammer.

Serpent had reinvented himself multiple times over the years, yet his true identity remained elusive.

Determined to track him down, I began my investigation.

The Early Years of Serpent

To understand Serpent, I decided to start with his teenage years.

Once a celebrated gamer, he had amassed a large following on YouTube, showcasing his Fortnite gameplay.

However, in June 2020, he was caught cheating, leading to a minor scandal in the gaming community.

His e-sports team severed ties with him, and Epic Games permanently banned him from Fortnite.

In a public apology, Serpent admitted to cheating, claiming that the allure of money and fame had clouded his judgment.

Fast forward five years, and it appeared he had succumbed to similar temptations once again.

The Emergence of a New Scheme

After leaving the gaming scene, Serpent rebranded himself as an online vigilante.

He began exposing scammers on Twitter, tracing cryptocurrency flows from fraudulent websites to their operators, even confronting them publicly.

His growing profile allowed him to promote a new cryptocurrency he created called $ERROR coin.

Like many custom cryptocurrencies, it had no real-world utility; its value was entirely speculative.

In March 2024, Serpent launched $ERROR coin, hyping it as the next big thing in crypto.

As interest surged, many investors jumped on board, eager to avoid missing out.

The Pump and Dump Strategy

As the value of $ERROR coin skyrocketed, Serpent seized the opportunity to sell off his holdings.

He flooded the market, causing the coin’s value to plummet to zero, leaving investors with worthless digital assets.

This tactic, known as a “pump and dump” scheme, is alarmingly common in the crypto world.

Serpent reportedly made off with around $900,000, further tarnishing his reputation within the crypto community.

In the aftermath, he faced accusations of additional financial misconduct, including fraudulent marketing tactics.

The Community Turns Against Serpent

In the world of cryptocurrency, every transaction is publicly recorded.

Following the $ERROR debacle, a well-known crypto investigator named ZachXBT traced the digital footprints left by Serpent.

He discovered that Serpent had been involved in a previous scam that mirrored the $ERROR coin scheme.

When ZachXBT revealed his findings, the community quickly turned against Serpent.

He faced public shaming similar to what he had previously inflicted on others.

The Fallout from Scams

Despite the outrage, Serpent’s actions fell into a legal gray area, as the cryptocurrency market remains largely unregulated.

Months later, the U.S. financial regulator classified bespoke coins as “collectibles,” further complicating the landscape.

In Australia, the Competition and Consumer Commission (ACCC) has prioritized cryptocurrency scams as an enforcement focus for 2025.

Serpent’s actions had largely escaped real-world consequences, but that was about to change.

The Gambling Connection

After the initial backlash, Serpent began live-streaming his gambling sessions on Stake.com, a cryptocurrency-friendly online casino.

During these broadcasts, he made significant bets, sometimes moving as much as $200,000 at a time.

An owner of a competing casino noted that many crypto scammers are also heavy gamblers.

As Serpent gambled, he inadvertently revealed his cryptocurrency wallet addresses, allowing ZachXBT to delve deeper into his financial activities.

ZachXBT uncovered connections between Serpent and various other scams, including hacked accounts.

A Series of High-Profile Scams

One particularly bizarre incident involved a rogue post from McDonald’s official Instagram account promoting a meme coin called $GRIMACE.

Investors, believing it to be legitimate, purchased nearly $700,000 worth of the coin, only to be left empty-handed when the hackers sold their holdings.

This was just one of several scams that had siphoned millions from unsuspecting investors.

ZachXBT managed to trace the proceeds from these scams back to Serpent’s crypto wallet, establishing a tenuous connection.

Attempts to Reach Serpent

By the next morning, the email deluge had significantly slowed.

While I continued to receive rogue newsletters, the flood of new sign-ups had ceased.

I was left pondering whether this was merely a warning or if the situation would escalate again.

In my quest to locate Serpent, I encountered various individuals who had either lost touch with him or described him as a “good guy.”

Then, I received an unexpected email from an address linked to Serpent.

A Conversation with Serpent

In the ensuing conversation, Serpent denied most allegations against him.

He acknowledged engaging in “memecoin trading” but denied any involvement in hacking or orchestrating pump and dump schemes.

According to him, his reputation had been tarnished due to his association with a community of troublemakers.

He claimed that gambling addiction is prevalent among fraudsters and that he had merely shared accounts with others, leading to mixed financial trails.

When I inquired about the email barrage, Serpent attributed it to someone I had contacted during my investigation.

The Impacts of Online Culture

Since his cheating scandal, Serpent had navigated through various online realms—gaming, gambling, and cryptocurrencies—all of which promote instant gratification.

Experts warn that these overlapping cultures can pose risks for impulsive young men.

One young individual shared that early exposure to crypto casinos had ignited his gambling addiction.

According to Serpent and others in the industry, there is a notable overlap between problem gamblers and crypto scammers.

Impulsive youth, seeking quick cash, may resort to scamming or hacking, especially in environments where such behaviors are normalized.

However, as Serpent learned, these choices can lead to serious consequences.

Since the allegations surfaced, he has faced extortion attempts, threats to expose his identity, and even discussions of physical harm.

He expressed a desire for the attention to fade away.

Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Readers are encouraged to conduct their own research before making any investment decisions.