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MrBeast faces Senate scrutiny over teen crypto app acquisition

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MrBeast faces Senate scrutiny over teen crypto app acquisition

United States Senator Elizabeth Warren is asking Jimmy Donaldson, aka “MrBeast,” and Beast Industries CEO Jeff Housenbold to explain why they acquired a teen app that coached minors to pressure their parents into buying crypto.

The 12-page letter demands answers about why Donaldson bought the app, called Step, that published word-for-word scripts coaching teens.

“Crypto and stock investing is not taught in my school, but by using Step, it’ll teach me life skills like how to balance risk and rewards,” the script told children to recite to their guardians.

“Mom, you’ve had Apple stock forever, bitcoin has just as much potential,” it continued.

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After MrBeast’s acquisition in February, the owner of Step’s YouTube account set most of its videos to private to prevent them from being publicly viewable.

Step claims to serve about 7 million customers and focuses on minors.

In 2022, the company launched crypto trading for teens through Zero Hash LLC. Step claimed to be “the first platform to allow teens, with the consent of a parent or legal guardian, to responsibly participate first-hand in the rapidly evolving investing landscape, starting with buying and selling bitcoin.”

By April 2022, Step boasted that teens under 18 years old would be able to “access 50+ tokens” and would “be able to buy NFTs.”

It didn’t mince words about whether these purchases would be incidental, de minimis values for educational purposes.

To the contrary, it called the offering an “investing platform” to “ensure the next generation is prepared for their financial futures.”

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Read more: Esports influencer fired for pumping and dumping ‘Save The Kids’ crypto

Script for kids still live on YouTube in late 2024

While the company claimed minors could invest only with parental consent, Step built the consent bypass toolkit itself with its scripted coaching tutorials.

A review of YouTube URLs confirms that they now return private notices. Several of the original links still display metadata in Google caches.

Although Step promoted crypto heavily before MrBeast acquired it, it discontinued several of its offerings over the years.

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However, the script teens were supposed to use to convince their parents to invest in crypto was still live on YouTube as recently as December 28, 2024.

That’s years after the initial crypto investing initiative by Step and more than half a year after Step’s May 1, 2024 claim that it had shut down all crypto investing accounts.

The company appears to have fully ended its crypto investing post-acquisition.

Bitmine’s ETH company helped MrBeast buy Step 

Beast Industries acquired Step after a $200 million investment from Bitmine Immersion Technologies, Tom Lee’s ether (ETH) treasury company.

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Bitmine, embarrassingly, has lost more money investing in ETH than even FTX’s customer deposits

MrBeast’s YouTube channel has more than 470 million subscribers. About 39% of his viewers are between ages 13 and 17, with the vast majority of his viewers younger than 25.

In late 2025, Beast Holdings LLC filed a trademark for MrBeast Financial. It mentioned crypto exchange services and decentralized exchange transactions.

MrBeast has an April 3 deadline to respond to the senator’s questions.

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Crypto World

Bitcoin Depot Appoints Ex-MoneyGram Boss as CEO

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ATM, Bitcoin Depot

Bitcoin Depot has named the former CEO of payments giant MoneyGram as its new boss amid mounting regulatory pressure from US states over crypto ATM’s use in scams and money laundering. 

The company said on Tuesday that Scott Buchanan had immediately stepped down as CEO, a role he served in for less than three months after starting on Jan. 1. It added in a regulatory filing that his resignation “was not due [to] a disagreement.”

Bitcoin Depot appointed Alex Holmes, who was already a board member, as CEO and chair. He has held various executive roles, including finance chief and CEO, over a 16-year period at MoneyGram, where he focused on regulatory compliance.

“As I step into the role, my priorities are operational stability, regulatory progress, and accelerating the Company’s evolution into a more diversified fintech platform,” Holmes said in a statement.

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ATM, Bitcoin Depot
Alex Holmes speaking on stage at a fintech conference in 2022. Source: YouTube

The leadership shake-up comes as Bitcoin Depot has faced legal and regulatory challenges in multiple US states, as crypto ATM operators come under increased scrutiny over the kiosks’ use in scams and money laundering.

Bitcoin Depot said its founder and former CEO, Brandon Mintz, would also transition from executive chair to a non-executive member of the board and would work as an adviser to Holmes.

Multiple US states take action against Bitcoin Depot

Bitcoin Depot most recently faced state action in Connecticut, whose banking regulator suspended its state money transmission license and issued a temporary cease-and-desist order earlier this month.

The order alleged multiple violations of the state money transmission laws, including excessive fees and incomplete refunds to scam victims.

Bitcoin Depot has also faced action from at least four additional states since early 2025, with Massachusetts’ attorney general suing Bitcoin Depot in early February for allegedly overcharging consumers, knowingly facilitating scams and refusing to issue refunds. 

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The company paid $1.9 million to Maine’s Consumer Credit Protection Bureau in January to compensate consumers for fraudulent transactions, and Missouri’s attorney general opened an investigation into Bitcoin Depot and four other crypto ATM operators in December over concerns of deceptive fees and use by bad actors.

Related: Crypto ATM losses surge 33% in 2025 as AI superpowers scams: CertiK

Iowa also sued Bitcoin Depot and CoinFlip in February 2025 over alleged failures that allowed scammers to transfer millions of dollars through their kiosks.

Bitcoin Depot had lowered its 2026 outlook in its 2025 results released earlier this month, estimating its revenues would be down 30% to 40% due to a “dynamic regulatory environment.”

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Shares in Bitcoin Depot (BTM) ended trading on Wednesday down 6.6% to $2.62, but saw a 4.7% bump after the bell to $2.74.

The stock is down 71% so far this year and has fallen more than 94% from its closing all-time high of $45.36 in mid-June.

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