After publishing My Initial Exposé on Steve Colwill, better known as “Digital Degen,” it didn’t take long for the self-proclaimed DeFi gambler to respond.
In true damage-control fashion, Steve uploaded four back-to-back YouTube videos in a single day, each one filled with justifications, personal insults, and deflections—all while claiming he would never mention my name again.
Yet in every single video, he couldn’t seem to stop talking about me, Danny de Hek, aka The Crypto Ponzi Scheme Avenger.
For those just tuning in: Steve Colwill is a YouTuber who runs a channel called “Digital Degen,” where he documents his journey through the “high-risk world of DeFi platforms.” In reality, he has built an entire brand around promoting Ponzi schemes and crypto scams, many of which rely entirely on recruitment and fresh deposits to function. Despite his frequent disclaimer that “this is gambling,” the real-world impact of his content is undeniable. People are losing money, and he’s profiting.
In Steve’s latest wave of videos, he repeated one of his go-to defences: “If it’s paying, it’s not a scam.” Let’s pause right there. Just because a scheme is currently paying out doesn’t mean it’s legitimate. That’s the hallmark of a classic Ponzi: early participants get paid with money from newer victims. It’s like robbing a bank but posting a warning sign that says, “You might get mugged here.” Does that make it okay? Of course not.
He also doubles down on the idea that calling it “gambling” somehow gives him a moral hall pass. But again, when you’re taking commissions and instructing people in private Telegram groups on where and how to deposit—while disguising it as “entertainment”—you are no longer a harmless gambler. You’re an active participant in financial harm.
Now let’s address some of the more personal jabs:
Yes, Steve, I have 64,000 subscribers, and that number is verified by Google. It’s also Fully Explained on the homepage of my website. Unlike you, I’m not deleting videos or hiding content. I’m transparent, public, and always willing to stand behind my investigations.
Personal insults, like calling me a “loser,” “crusty old man,” or a “parasite,” don’t bother me. They’re textbook deflection tactics used by people who don’t want to face the facts. And the facts are this: I’ve never invested in a Ponzi, promoted a scam, or taken a cent in commissions from anyone.
So what caused this outburst?
I sent Steve a calm, professional email titled: Subject: Interview Request – Investigation Into Ponzi Scheme Promotions on the Digital Degen YouTube Channel
Hi Steve,
My name is Danny de Hek, also known as The Crypto Ponzi Scheme Avenger. I run a platform focused on exposing individuals who promote fraudulent crypto investment platforms and MLM-style Ponzi schemes.
I’m currently conducting an investigation into your YouTube channel “Digital Degen” and would like to offer you the opportunity to provide a formal response before I publish a detailed exposé on the platforms you’ve promoted and your ongoing role in what I believe to be deceptive financial content.
Here are some of the platforms you’ve featured on your channel in the last 12 months that raise red flags and are now confirmed or suspected scams:
BitGem Finance – Fake FCA license, high-yield promises, no transparency.
Beonbit – MLM Ponzi, pays commissions on recruitment, lacks product or utility.
13Q – Offers 2.2%–3.3% daily; uses typical Ponzi mechanics, has already stopped paying many users.
MAO Global – Dubious AI/robotic trading claims with pyramid-style ROI returns.
Meta AI Box – Dubbed an “AI opportunity,” but runs like a gifting/recruitment scam.
Tetherbot.io – Secretly promoted in your Telegram group despite clearly violating their ToS on media promotion.
ZX3, Jerby, Troni, Delta Dex, Laurent – All high-yield crypto investment schemes that you promoted and later rug-pulled.
2X Boost – Claims of “10-15% monthly” with no verifiable revenue source.
Monafund – Offers “3.9% daily indefinitely,” an impossible and unsustainable rate.
PLC Ultima, Fintoch, and similar schemes – Directly referenced or praised in previous content.
Across hundreds of videos, you continually refer to this as “just gambling” while publishing affiliate links and encouraging people to “have a go” based on your payouts. I believe this crosses the line from entertainment into reckless financial harm.
I’d like to give you a chance to respond to the following questions:
Do you receive any compensation, commissions, or referral bonuses from the platforms listed above?
Do you believe the projects you promote are sustainable or legally compliant?
Have you ever disclosed to your viewers how much you’ve earned from referrals or commissions?
Why do you promote these projects in your Telegram group using affiliate links if they are “just gambling”?
Do you accept any responsibility when a project you’ve promoted collapses and your viewers lose money?
Are you willing to publish a public statement or join me for a recorded interview to explain your position?
This is your right of reply before I publish. If you’d like to provide a response, clarification, or correction, please do so by replying to this email within 48 hours.
Kind regards,
Danny de Hek
The Crypto Ponzi Scheme Avenger
www.dehek.com
Rather than agree to a discussion or provide a statement, Steve chose to escalate—with four videos trying to justify his actions.
In those videos, he:
- Claimed he’s being “exposed” for “just gambling”
- Admitted to earning referral commissions but downplayed them
- Claimed not to promote Tetherbot.io, despite having an entire secret video in his Telegram group walking members through the process
- Tried to shift blame by saying that because these projects are still paying, they aren’t scams
Let’s be clear: Ponzi schemes pay—until they don’t.
Breakdown of the Four Videos:
- “BEONBIT!!! SOME SAY SCAM YET ANOTHER PAYOUT LANDED!!“ Steve defends Beonbit by saying it’s been paying for 16 months, therefore it can’t be a scam. This is the classic fallacy used by Ponzi promoters. He openly admits 99% of these platforms are scams, but still ranks Beonbit as his “number one” project simply because it’s still paying. He attacks my channel and says that defamation of character is a serious issue, ignoring the fact that public promotion of illegal financial schemes is the real problem. He also boasts about hiding negative comments and blocking users who disagree. In this video, he earns referral commissions and celebrates it openly—completely undermining his claims of neutrality.
- “2XBOOST!! ANOTHER INSTANT WITHDRAWAL LANDED!!!“ This video is meant to show how a platform with no referral commissions is somehow proof of Steve’s ethics. However, he admits to helping launch this project and depositing $3,000 of his own money. The platform claims 10–15% monthly returns, which is mathematically unsustainable. Steve mentions that his “earned total” is $1,710 already. Despite supposedly stepping away from promotion, this is yet another video encouraging people to sign up to a site with no transparency, no regulatory license, and outrageous returns.
- “MAUNA FUND! 2 MORE PAYOUTS LANDED! HIGH RISK DEGEN PLAY!!“ Here, Steve acknowledges that all the similar Litecoin projects he’s promoted (ZX3, Troni, Delta Dex, Jerby) have rug-pulled, yet somehow Mauna Fund is still okay. He even says: “Every project I just mentioned rugpulled… but many of us made a lot of money.” This quote shows the problem. It’s not just about whether a project pays for a few months—it’s that it ultimately collapses, and by then, the victims have no recourse. He shrugs off the Ponzi structure by claiming, again, that “these are gambling plays.” But he’s not rolling his own dice—he’s pulling the slot lever with other people’s deposits.
- “IT’S BEEN FUN GUYS! I WAS EXPOSED FOR GAMBLING IN CRYPTO PROJECTS!“ The most dramatic of the four. Steve pretends to shut down his channel, claims he was “exposed,” then walks it back. He throws insults my way, mocks my subscriber count, and calls me a “parasite.” Despite claiming he’s done with the topic, he spends over 17 minutes ranting about me. He admits he lost $80,000 in 2023, created his channel out of spite, and continues to invest in DeFi gambling. He acknowledges that “most of these projects are scams” but then says that “some have made people a lot of money,” using that as justification. This is not accountability—it’s rationalisation.
Steve’s Telegram group, Digital Degens Gambling Group, is another key piece of the puzzle. In it, he posts voice memos and hidden videos offering private investment advice, including one particularly revealing video where he promotes Tetherbot.io despite its strict terms:
“Any users, promoters, or third parties found publicizing or promoting TetherBot… without proper authorization will face severe consequences… including immediate account termination and the permanent loss of all funds.”
Steve, of course, ignored this and uploaded a full walkthrough video inside his private group. In the video, he states:
“This is just for the Telegram group… I’m not putting it on my YouTube channel and risking my account.”
His affiliate link is https://tetherbot.io/register/510562, and his group has 425 members.
If you’re wondering where the deception lies, it’s right here:
- Hidden promotions
- Affiliate links distributed privately
- Profiting from schemes that collapse
- Claiming he’s “just documenting a journey”
But perhaps the most telling quote comes from Steve himself:
“I earn referral commissions, but anybody has that opportunity… It comes from the project.”
Exactly. It comes from the project. And the project is funded by investors, most of whom will lose everything. That’s the scam.
So what can we do?
I’ve already reported Steve to the Canadian Anti-Fraud Centre, and I encourage others to do the same here: antifraudcentre-centreantifraude.ca (or [email protected])
If you’ve lost money due to his promotions, report it. Don’t let these influencers profit while victims suffer.
And Steve, if you’re reading this (and let’s be honest, you are): you had every opportunity to engage in a conversation. Instead, you chose mockery, denial, and distraction. That’s fine. We’ll just let the evidence speak for itself.
This is your reaction, Steve. The question is: what comes next?
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