MrBeast is learning the hard way that teens and crypto can be a perilous mix.
YouTube’s top creator drew political scrutiny this week when Sen. Elizabeth Warren questioned his February acquisition of the fintech app Step.
Warren sent MrBeast, whose real name is Jimmy Donaldson, a letter with a series of 11 questions, the first of which was whether his company would “allow users of Step to invest in or hold cryptocurrency or NFTs?”
Step is a digital banking platform aimed at teens and young adults that offers savings accounts, a credit-building Visa card that works like a debit card, and a cash-advance program. While not a bank itself, it offers banking services via a partnership with FDIC-member Evolve Bank & Trust.
The acquisition is part of a larger effort by Donaldson to parlay his gigantic YouTube base of over 470 million subscribers to other goods and services, ranging from chocolates to mobile phones.
Donaldson has said he saw the Step acquisition as an opportunity to give young people the financial foundation he never got.
His company, Beast Industries, has also signaled it would explore crypto and other forms of decentralized finance as part of its move into financial services. It raised $200 million in January from Ethereum holding firm Bitmine Immersion Technologies. MrBeast himself has talked up crypto in past interviews.
In Warren’s letter, she wrote that Step had previously allowed users to buy crypto, though it shut down that option in 2024. She also took aim at a series of videos about investing in cryptocurrency and digital assets that Step published in 2022.
One, “How to Talk to Your Parents About Investing in Crypto,” came complete with a script for kids to use on mom and dad. Those videos have been taken down, but you can still find a 2022 video titled “What Is Blockchain And Why Is It Important?” that includes a section on how cryptocurrency lets you buy digital goods and compares it to everyday purchasing.
Beast Industries CEO Jeff Housenbold told The New York Times that Step’s ability to handle crypto was a “side benefit” in the deal.
Diving deeply into crypto and DeFi could be risky for Donaldson, whose business interests rely on the trust he’s built with his audience.
“If they’re being pushed DeFi crypto products and they start losing money, that’s where the reputational risk is in play,” said Elizabeth Gujral, director at Cornerstone Advisors, which consults to financial institutions.
MrBeast is evaluating alternatives to Evolve
Warren wrote that Beast Industries was “ill-prepared” to run a financial services company.
She said the company had only recently begun to professionalize, and that an employee — later fired — had been reported to federal regulators after insider trading allegations from the predictions market Kalshi.
Beast Industries said it’s examining Step’s products and marketing to ensure they meet its standards, and that its focus is on financial literacy and education. A company spokesperson said that 90% of Step’s accounts are held by people 18 or older.
In her letter, Warren also pointed to various “troubles” — including a 2024 enforcement action — faced by Step’s banking partner, Evolve Bank & Trust. A person close to Beast Industries said the company is evaluating alternative banking partners to Evolve.
Even if Donaldson tightens up Step’s products and marketing, Warren’s letter shows the risk posed by potential crypto products geared toward young people.
Crypto investments can be volatile, putting inexperienced investors at risk for big losses.
Nearly half (49%) of investors under 35 were considering cryptocurrency investments, and half had already invested, compared to 8% and 10%, respectively, among investors 55 and older, according to a 2024 FINRA survey.
MrBeast is entering a new level of risk
Donaldson’s influence as a YouTuber could expose “impressionable people” to potentially risky investments, especially as many young people feel the traditional path to success isn’t working, said Adam Rust, director of financial services at the Consumer Federation of America, a group of about 250 nonprofit pro-consumer organizations.
Donaldson is no stranger to controversy when it comes to brand extensions. His MrBeast Burger ghost kitchen venture faced complaints of undercooked burgers and soggy fries, leading to the implosion of his relationship with his business partner and dueling lawsuits.
One lesson Donaldson took away from the burger debacle was that it’s better to control his image than rely on outside partners. Donaldson has moved on from burgers, but not from the risk that comes with chasing big ambitions.
The stakes are high when it comes to people’s finances.
Money is deeply personal, said Josh Gerben, a trademark attorney whose firm’s clients include entrepreneurs, celebrities, and pro athletes.
“It’s a big leap in sophistication to deal with something like that,” he said. “It carries a higher level of risk than a consumer good.”
